Showing posts with label compound interest. Show all posts
Showing posts with label compound interest. Show all posts

Sunday, August 7, 2022

Lessons on Compound Interest, Rent, and Mittens

Last week I got an email from the Council for Economic Education. The email listed the ten most popular resources on their site. Two of them stood out to me and one of them led me to an additional resource that wasn't included in the email. 

The Compound Interest Calculator is the most popular resource on the Council for Economic Education's website. It does exactly what the name states. Students enter age, interest rate, initial investment, and monthly savings to see how much they'll save and earn over time. There are lots of tools like this one on the web. The nice thing about this one is that it's not surrounded by a zillion ads for mortgages and investment brokers. 

Renting a Place to Live is the ninth most popular resource offered by the Council for Economic Education. It is a free lesson plan that is designed to help students understand the process of finding a place to live and the true cost of renting a place to live. The lesson plan includes some handouts for students to use to identify the costs associated with renting. 

A resource not mentioned in the CEE's email was Economics in Children's Literature. I discovered that collection by going down a virtual rabbit hole of related resources after looking at the Renting a Place to Live lesson plan. Economics in Children's Literature is a collection of lesson plans for introducing economics concepts to elementary school students through the use of literature. For example, this lesson plan about scarcity is centered on reading Jan Brett's story, The Mitten (a story my own kids love). 

Monday, January 11, 2016

The Difference Between Stocks and Bonds

Last night I watched The Big Short starring Steve Carell, Ryan Gosling, Christian Bale, and Brad Pitt. I enjoyed the movie. For those who aren't familiar with The Big Short, it is a movie about how the housing and stock markets crashed in 2008 and how a few shrewd investors benefited from the crash. Watching the movie prompted me to dig up some information about stocks, bonds, ETFs, and related investing basics.

Investing for Beginners is a playlist of videos produced by Fidelity Investments. Granted, the videos are from a financial services company, but they do offer a good introduction to the basics about stocks, bonds, and mutual funds.


Investopedia offers a playlist of short videos that define things like ETFs, dividends, and compound interest. That playlist is embedded below.


Take a look at these five tools for creating flipped video lessons out of one or all of the videos in the playlists embedded above.

Monday, July 7, 2014

Two Good Explanations of Compound Interest

Compound interest can be a wonderful thing if you're saving money. How compound interest works is a concept that every middle school or high school student should learn as it helps them see the value of saving money in a bank account.  The following videos do a nice job of explaining how compound interest works.

The Common Craft video below (click here if you're reading this in email or RSS) does a nice job of explaining the concept in a way that middle school and high school students can understand.


Investopedia offers a slightly different explanation of compound interest vs. simple interest.

Applications for Education
Extend the lessons of these videos by having students look for current interest rates offered by banks and credit unions. Ask them to calculate how much money they could save by the time they finish high school or college if they started saving ten dollars a week right now.

Wednesday, May 8, 2013

A Simple Video Explanation of Compound Interest

Compound interest can be a wonderful thing if you're saving money. Or it can be a curse if you're trying to pay-off a debt. Either way, it's a concept I have seen students try to understand. The Common Craft video below (click here if you're reading this in email or RSS) does a nice job of explaining the concept in a way that middle school and high school students can understand.

Thursday, January 20, 2011

Saving Money (Compound Interest) in Plain English

Saving Money in Plain English is a Common Craft production that provides a concise explanation of the benefits of saving money in a bank or credit union. While the video doesn't explain how to calculate compound interest, it does explain the benefit to your savings of compound interest.


Khan Academy has some good videos that introduce and explain how to calculate compound interest. The first two videos in the series are embedded below.




Applications for Education
When my school still offered a consumer mathematics course, calculating compound interest was an important concept in the course. These videos could help students understand the benefits of interest and perhaps see why they would want to know how to calculate compound interest.