Virginia SOL CE.12.f
The Standard
explaining how financial institutions are critical to creating capital to fuel economic growth for individuals and the larger economy by channeling funds from savers to borrowers through lending
Virginia Standards of Learning for History and Social Science · The student will apply history and social science skills to describe the United States economy by
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students trace how money moves from savers to financial institutions and then to borrowers. They explain how loans help people and businesses buy resources, create jobs, and expand production.
What Mastery Looks Like
- Students can draw and explain the path from deposits to loans to economic activity. They can give examples of how borrowing creates capital for a household or business.
Common Misconceptions
- Students may think deposited money stays in a vault or that banks lend only their own money. They may also confuse interest paid to savers with interest charged to borrowers.
How to Assess It
- Give students this exit prompt: Draw how $1,000 in savings could help a bakery expand, and label the saver, bank, borrower, and loan.
Lesson moves
Ways to Teach It
Run a bank simulation with play money where savers deposit funds, the bank makes loans, and borrowers buy business equipment.
Ask students to explain in writing what could happen if savers stopped putting money into financial institutions.
Play a sequence card game where teams arrange saver, deposit, financial institution, loan, business purchase, and economic growth in order.
Compare posted savings and loan rates from a local bank, then calculate who pays interest and who receives it.
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Printable CE.12.f Worksheet
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Related Standards
- CE.12.e
explaining the role of consumers, producers, and government interactions on the economy;
- 1.8.c
describing ways people work to earn and save money to purchase goods and services
- K.8.a
describing ways people work to earn and save money to buy the things they need and want; and
- CE.13.d
explaining the structure and main function of the Federal Reserve System and how it acts as the nation’s central bank;
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