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Lesson

Saving and Investing

Guiding question

How is saving different than investing?

Duration
60 min
Grade
9–12
Published
Nov 5, 2020
A black and white image of stock traders on the trading floor, one man holds up a piece of paper while others observe.
If, as individuals, we spend more than we earn, we can go bankrupt. The same is true with nations. If a nation spends on government services more than it takes in from tax revenue, it runs a deficit, and must borrow at interest to get back to even.

Guiding Questions:

  • How is saving different than investing?
  • To what extent is the US national debt bad?
  • Why was establishment of the Federal Reserve a turning point in the development of the U.S. economy?

Objectives:

  • Students will trace significant events in the history of the U.S. economy.
  • Students will understand basic concepts regarding government spending.

Materials

Educator Resources

Student Handouts

Lesson Components

ActivityHandout A: Is It Saving or Investing or Both?
ActivityHandout B: Loanable Funds Market
EssayEssay: Saving and Investing

If, as individuals, we spend more than we earn, we can go bankrupt. The same is true with nations. If a nation spends on government services more than it takes in from tax revenue, it runs a deficit, and must borrow at interest to get back to even.

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Lesson plan

60 minClick a phase to open it

Key Terms

First National Bank
Second National Bank
taxing
spending
deficit

More Information

This lesson aligns with an Economics, Government, or U.S. History class when teaching the Federal Reserve or the Great Depression.

Standards

Check whether this resource aligns with your state’s standards →