Retirement - Start Saving Early
- Price per Classroom$2.00
- Grade Levels 7, 8, 9, 10
- Topics Saving, Investment
- Duration 20 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
Activity Description
If students plan to retire at the age of 65, they should understand the total interest that can be earned if they start saving money at different ages.
This interactive worksheet activity helps students understand the concept of opportunity cost in the context of saving money, which is a fundamental principle in economics and finance. By adjusting the age at which they start saving money, students will observe the impact on potential gains and discover how powerful early saving and investing can be. They will also learn that starting late means losing a significant amount of interest money that they would have earned had they started early, and this is known as opportunity cost.
Through this worksheet, students will understand the power of compounding and how it amplifies savings and investment growth over time, highlighting the benefits of starting early.
This classroom-ready worksheet is interactive and dynamic, and can be assigned to your classroom with just a few clicks. The worksheet is auto-scored, and teachers can monitor student progress in real-time through the console.
Learning Objective
In this hands-on exercise, students will assume that they are retiring at the age of 65 and are starting to save every month $100 for their retirement. They will see the effect of starting to save at different ages. Students will find that earlier they start, they can accumulate a lot of compound interest and hence can easily build their retirement fund.
Teacher Tips
- Price per Classroom$2.00
- Grade Levels 7, 8, 9, 10
- Topics Saving, Investment
- Duration 20 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
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National Standards in Personal Financial Education
Students will know that Compound interest is interest on both the original principal and previously earned interest, as compared to simple interest which is only interest on the original principal .. Students will use this knowledge to 8-5a . Explain the benefit of compound interest as compared with simple interest . 8-5b . Demonstrate how annual interest earned increases over time when both the original principal and earned interest are left in a savings account .
Students will know that Interest earned on savings is the interest rate multiplied by the balance in the account, which includes the original amount saved (principal) and previously earned interest .. Students will use this knowledge to 8-4a . Differentiate between principal and interest . 8-4b . Demonstrate how earning a higher interest rate on money in a savings account will help a person to reach their savings goal sooner . 8-4c . Use the Rule of 72 to approximate how many years it will take for savings to double in value at different rates of interest .
Students will know that People save money for many different purposes, including large purchases such as cars and homes, education costs, retirement, and emergencies .. Students will use this knowledge to 8-1a . Identify the most common reasons that people save money for the future . 8-1b . Create a savings plan that will allow someone to make a large purchase in one year, 5 years, and 10 years .