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ACTIVITY #1 Grow Your Money: The Save-Inator LESSON #5 - BANKING 1
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ACTIVITY #1 Grow Your Money: The Save-Inator You know by now that DeSean is a clever guy. He likes to build and create fun things, and when it comes to money, he’s got some big ideas too. He’s considering starting his own business after working for a few years, and he knows he’ll need $50,000 to get it o ff the ground. He’s got $10,000 in his bank account thanks to some smart savings, and a couple of years’ worth of tax refunds. Now he wants to know how long it will take him to reach his goal of having enough money to go out on his own. Using what he learned in a coding class at RIT, he whipped up an online calculator, Th e Save-Inator . He will use this tool to sort out his fi nancial planning needs. Activity Directions: 1. Before you open Th e Save-Inator , think about how long it might take him to save the money he needs: $40,000. Th en answer the following questions: a. Make a prediction. What’s your best guess for the number of years it will take DeSean to save the money? ______________ b. Predict again. How much money do you think DeSean should set aside each month to reach his goal? ______________ c. Based on what you know about interest rates, how much return on his savings (interest) will DeSean likely earn at the bank? (You can do a little online research at a website like before giving your answer.) ______________ 2. Using Th e Save-Inator , enter: a. the amount of money DeSean has ($10,000); b. how much he wants to have ($50,000); and c. how much you think he might be able to set aside each month. d. You’ll also need to choose an interest rate–the amount of interest the bank will pay him each month based on the money in his account. 3. Using Th e Save-Inator , try a few di ff erent scenarios for DeSean’s savings plan. a. Put in a di ff erent amount of money for savings. Try setting aside less each month. If he saves less each month, how much longer does it take him to save? ______________ b. Now try a di ff erent interest rate. You may not have that much control over rates, but di ff erent banks and di ff erent savings plans do o ff er di ff erent interest rates. If his money earns a higher interest rate, how much less time does it take him to reach his goals? ______________ LESSON #5 - BANKING ACTIVITY #1 - GROW YOUR MONEY: THE SAVE-INATOR 2
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LESSON #5 - BANKING c.
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