Teaching Fin Lit in Arkansas: Mastering Interest Rates
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How do I calculate an interest rate? How does interest work on credit cards? How does interest work on savings accounts? How do rising and falling interest rates affect me? Young adults who are curious about earning and saving money as well as avoiding common debt pitfalls are asking these questions.
Dr. Mike Casey, Professor of Finance at the University of Central Arkansas, regularly discusses these questions and more with Arkansas teachers around the state during professional development workshops and webinars. In partnership with the Arkansas Center for Research in Economics, Dr. Casey developed a set curriculum units for teaching personal finance topics to Arkansas students based on the state’s personal finance educational standards. Each unit includes lesson plans, activities, discussion guides, and AMI options for virtual learners.
Mastering Interest Rates
The Mastering Interest Rates unit guides students through various life scenarios where interest rates appear, like when buying a car, taking out a student loan, or making other large purchases. Students learn how interest rates work when saving and investing, and how different interest rates can lead to more or less total savings over periods of time. They discuss credit scores and how ones scores impacts their interest rate offers. They work through an activity where they create a plan to pay off a high-interest credit card, and learn how using credit cards can lead to quickly compounding debt. Historical data is also included so teachers can discuss how interest rates have changed and impacted individuals, businesses, and governments throughout history. Through the hands-on activities, discussion guides, and recommended articles for individual and small group reading, students will leave this unit with new knowledge on how interest rates will impact their future decisions.
Learning Objectives and Standards:
The Mastering interest rates unit includes a provided schedule for four days of class time but can be shortened or expanded to meet each teachers unique classroom needs. Several Arkansas learning standards for personal finance have been imbedded into the curriculum including:
PF.7.SI.1 Compare the effects of interest rates as applied to saving and borrowing money
PF.7.SI.2 Examine how consumers are affected by raising and lowering interest rates
PF.7.SI.3 Calculate simple and compound interest and explain the difference between the two
PF.7.SI.4 Analyze the relationship between risk and return
Learn more:
Professional development sessions are provided throughout the academic year for every curriculum offered through the ACRE Social Studies Library! At these sessions, attendees hear in-depth content overviews, participate in activity demonstrations, and receive materials like books and activity kits to take back to their classrooms. Check out our event calendar to sign up for an upcoming session!
