Smart Investing

Australian Curriculum Alignment

Curriculum Area: Humanities and Social Sciences (HASS) – Economics and Business
Level: Year 5
Content Description:

• The difference between consumers and producers and the effect of their decisions on themselves and others (ACHEK010)
• Types of resources (natural, human, capital) and the ways societies use them to satisfy the needs and wants of present and future generations (ACHEK012)

Lesson Objectives

By the end of this 35-minute lesson, students will be able to:

1. Understand what a term deposit is.
2. Identify the characteristics of a term deposit.
3. Recognize the benefits and limitations of term deposits.
4. Learn how to compare different term deposit options based on interest rates and terms.

Materials Needed

• Term Deposit Fact Sheets (printed handouts)
• Whiteboard and markers
• Visual aids (charts illustrating interest rates and terms)
• Fake currency notes for an activity
• A stopwatch or timer for managing class activities

Lesson Structure

Introduction (5 minutes)

1. Greeting and Roll Call:

   • Welcome students and take attendance.

2. Hook:

   • Ask students if they have ever saved their money for something special.
   • Introduce the concept of saving money and investing in term deposits.

Direct Instruction (10 minutes)

1. Definition and Characteristics:

   • Using the whiteboard, explain what a term deposit is: a type of savings account where money is locked in for a set period with a guaranteed interest rate.
   • Characteristics include: fixed interest rates, fixed terms (e.g., 6 months, 1 year), and less accessibility compared to regular savings accounts.

2. Benefits and Limitations:

   • Benefits: Higher interest rates compared to regular savings accounts, safe investment, guaranteed returns.
   • Limitations: Money is locked in and cannot be accessed without penalties, lower flexibility.

3. Real-Life Example:

   • Present a simple example with numbers on the whiteboard to show how the interest accumulates over time.

Group Activity (10 minutes)

1. Scenario-Based Activity:

   • Divide students into small groups of four.
   • Hand out Term Deposit Fact Sheets and fake currency notes to each group.
   • Give each group a different scenario (e.g., $1000 to invest in a 6-month term deposit vs a 1-year term deposit).
   • Ask groups to calculate the interest earned for each scenario based on the provided interest rates.

2. Discussion:

   • Allow each group to present their findings.
   • Initiate a class discussion on which option they think is better and why.

Independent Practice (7 minutes)

1. Worksheet:

   • Distribute worksheets with multiple-choice and short-answer questions related to term deposits.
   • Questions might include the definition of a term deposit, calculating interest, and identifying terms.

2. Monitoring:

   • Walk around the classroom to provide individual assistance and ensure students are on task.

Conclusion and Review (3 minutes)

1. Recap:

   • Summarise the key points covered in the lesson.
   • Reiterate the importance of understanding term deposits as a form of smart saving.

2. Q&A:

   • Open the floor for any final questions from students.
   • Provide answers and clarify any misconceptions.

Assessment

• Formative:
  • Participation in group activity
  • Completion and accuracy of worksheet questions

Teacher Reflection

• Did students grasp the concept of term deposits?
• Were the activities engaging and effective in explaining the subject?
• What improvements can be made for future lessons?

Note: Always tailor the language and content to the specific needs and levels of your students for best results.