Mr. AndersonEconomics

Objectives:1. Describe the benefits people get by saving money.2. Compare savings accounts and time deposits.3. Explain how economists measure savings.

Account Interest Min. To avoid Monthly

Fee % Deposit Monthly Fee

Bank of America: .05 $100 5000.00 10.00 First Arizona Savings .20 $1,000 1000.00 7.00 Wells Fargo .03 $100 5000.00 10.00FNBO.Direct 1.10 $0 $0 $0

FMA-Warm-Up Activity How is ING able to pay so much more on their savings accounts than the other “brick

and mortar”banks?

How much would each bank pay out in interest over 1 year if you had a $10,000 account in each?

Activities1. Discuss FMA. 2. Finish Signing off for Collective Bargaining

Tree Map3. Discussion

a. How many of you have savings accounts.b. Why are you saving money?c. Why is a bank account better than piggy bank?

4. Notes—(1st discuss graphic on slide 3).5. Read 195-1996. Do 1-5 pg 199 AND Figure 9.1, 9.2 Quest.

Discussion Questions:

1. Given what you know about U.S. history, what has been going on when savings rates spiked?

2. How does the savings rate of this year compare with 50 years ago?

3. Why do you think American’s haven’t saved more as a percentage of wealth?