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USA National Standards for Concept "Savings"

NATIONAL STANDARD 3 - ALLOCATION: Students will understand that: Different methods can be used to allocate goods and services. People acting individually or collectively must choose which methods to use to allocate different kinds of goods and services.

Students will be able to use this knowledge to: Evaluate different methods of allocating goods and services, by comparing the benefits and costs of each method.

You can find additional online lessons on US Standard 3 from the Council for Economic Education Website.

Financial Literacy 3 - SAVING: Saving is the part of income that people choose to set aside for future uses. People save for different reasons during the course of their lives. People make different choices about how they save and how much they save. Time, interest rates, and inflation affect the value of savings.

At the 4th grade level, the primary focus is for students to understand the concept of saving. Students should know how people save money, where people can save money, and why people save money, as well as the concept of interest. At the 8th grade level, the focus turns to the role that financial institutions play as intermediaries between savers and borrowers as well as the role government agencies such as the Federal Deposit Insurance Corporation (FDIC) play in protecting savings deposits. The role of markets in determining interest rates is introduced. Finally, the mathematics of saving is covered, including the power of compound interest. All of this is framed around the choices people make about how much to save. At the 12th grade level, more complex concepts are introduced, such as real versus nominal interest rates, present versus future value, financial regulators, the factors determining the value of a person’s savings over time, automatic savings plans, “rainy-day” funds, and saving for retirement.