SOCIAL EDUCTION/Module 6, Taking Chargeteacher S Notes

SOCIAL EDUCTION/Module 6, Taking ChargeTeacher’s Notes

UNIT 3 -- Account OptionsSummary

Summary

Unit 3 introduces the accounts available at different types of financial institution. It asks students to:

Investigate the services provided by their local credit union and bank
Complete account opening/lodgement/withdrawal forms for the credit union
Complete procedures for key banking transactions:

-Opening a current account and obtaining a cheque book

-Opening a deposit account and obtaining a deposit book

-Lodging money into a bank account

-Withdrawing money from a bank account

-Changing money from one currency to another

-Writing a cheque

-Using a cash dispenser

Students also investigate the services provided by the post office and a building society
They explore options for an investment of €126

Resources

-Worksheets

-Flipchart or white board, and markers

-Photocopier

-Computer room

-Active Learning and Teaching Methodologies, Leaving Certificate Applied

Support Service

Glossary

See glossary for simple explanations of key terms. Also, visit the Financial Regulator’s website:

Key Assignment

In addition to completing the eight Learning Outcomes in the Unit 3 (as specified on each worksheet), students must complete the following Key Assignment:

Teacher’s Notes

TO:

Use experiential learning where possible, particularly through group research and presentations to the class.

Combine learning with enjoyment through fun activities, including; word searches, role-plays, etc.

Deepen each student’s knowledge of financial institutions, and the products and services that they offer.

Ensure that students gain maximum benefit from the school visit by the representative from the credit union, building society or bank, and are active rather than passive participants in this process. Ideally, students should be able and confident to ask the visitor searching questions about the products and services provided by that financial institution.

Encourage students to use this critical thinking approach, to the best of their ability, when preparing their Unit 3 Key Assignment instead of simply recounting the visit.

Equip students to ‘shop around’ when choosing a particular financial product or service in the future.

REMEMBER!

“Active Learning involves students directly and engages them actively in the learning process itself. Students are involved in all stages of planning, design, execution and evaluation,”

Active Learning and Teaching Methodologies, Leaving Certificate Applied Support Service

Unit 3 – Account Options Learning Outcome 1

“Identify the reasons for opening an account in a financial institution”

Introduce the topics found in Unit 3, Account Options. Explain that they will require hands-on research, and shopping around. Say that the class will arrange a visit from a person working in a financial institution as part of the Unit 3 Key Assignment

BRAINSTORM the advantages and disadvantages of having an account. Class completes Worksheet 1: Opening an Account (see attached).

Teacher prompts:Saving up for things

Reduces risk of theft

Interest on your money

Helps you borrow later on

BUT,

…Bank charges

…Having cash can be handy

…Have to visit the bank

UNIT 3 -- Account OptionsLearning Outcome 1

Worksheet 1: Opening an Account

Discuss the advantages and disadvantages of having an account and list them in the table below.

Advantages (Pros) / Disadvantages (Cons)
1.
2.
3.
4.
5.
6.

Unit 3 – Account OptionsLearning Outcome 1

DIVIDE the class into four groups, and give each group the task of visiting a financial institution – the local credit union, bank, building society, post office – before the next class. Give a copy of Worksheet 2: My Research Visit, to each student.

EXPLAIN what each group needs to do:

-The goal is to ‘shop around’.

-Ask groups to note the address and lay out of the building/s. Where do you queue for services?

-Ask each group to designate two people to ask questions at the counter and for this pair to complete a single blank (master) copy of Worksheet 2: My Research Visit with interest rate information, etc, and return to the teacher.

-Go quickly through the form, and briefly explain what is meant by Compound Annual Rate (CAR) and Annual Percentage Rate (APR), using the glossary if necessary.

-Remind each group to bring back brochures and application forms for joining the financial institution, lodging money and withdrawing money (maximum 4 copies of each form for the group) and return to the teacher.

-Explain that the group will report back to class. Each student should complete his or her own worksheet, but encourage them to work in pairs, especially if they need a ‘buddy’.

-Discuss how to get there. If there is no local financial institution nearby, suggest doing research on-line or by phone.

VISIT the Computer Room, and get each group to research their chosen financial institution. Using the website, local phone book or Golden Pages, record the contact details on the first part of Worksheet 2:My Research Visit.

Sites to visit:

guide/bank accounts

credit union

and investments

UNIT 3 -- Account OptionsLearning Outcome 1

Worksheet 2:My Research Visit (to the building society, bank, credit union, or post office)

Visit to the: ______
Address: ______
______
______
Phone: ______
Email: ______
Website: ______

Notes

General description of building
______
______
______
What are the opening hours? ______
Are there special desks/counters for different services? YES / NO
Name them: ______
______

Don’t forget to ask for (Tick the boxes)

⁯ Brochures ⁯ Application Forms

UNIT 3 -- Account OptionsLearning Outcome 1

Worksheet 2:My Research Visit

UNIT 3 -- Account OptionsLearning Outcome 2

“Investigate the local credit union and report on findings”

Ask if any class member/s belongs to a credit union. Prompt them to tell the class about their experiences. Is it easy to save? How does the credit union work?

Ask the group that visited the credit union to report to class: Where is it? Are the opening hours unusual? What are the services? What information do I need to open a share account? Are there special rules or conditions to join?

Ask the class; does anyone know the difference between a Share account and a regular savings account at thecredit union?

Remind students of the glossary definitions of Annual Percentage Rate (APR) and Compound Annual Rate (CAR). Explain with simple mathematical examples; e.g.

-If I borrow €1,000 from a bank quoting an APR of 10% over one year, I will have to repay €1,100 after one year.

Thus the cost of credit is €100.

-If I save €1,000 for a year, and CAR is 10%, I will get €1,100 back (before any tax deductions)

If necessary, visit the computer room and look up the Financial Regulator’s website at (go to consumer/financialproducts on homepage) for more information.

Using the information gathered on Worksheet 2: My Research Visit, fill in credit union details for CAR and APR on the Worksheet 3:Shop Around table, in large scale on flip chart (see attached).

Ask students to fill in details in their own Worksheet 3: Shop Around table also.

UNIT 3 -- Account Options Learning Outcome 7

‘Explore the various options for an investment of €126 (£100)’

Worksheet 3:‘Shop Around’ Table

Name / Credit Union / Bank / Post Office / Building Society
Compound Annual Rate (CAR) on savings accounts – Share a/c in credit union
Return on €126 deposit after one year
Annual Percentage Rate (APR) on a fixed rate personal loan
What is the ‘cost of credit’ on a €2,000 loan over one year?
Special terms & conditions for opening an a/c

UNIT 3 -- Account OptionsLearning Outcome 3

Complete the necessary forms for:

Joining the credit union
Lodging money in the credit union
Withdrawing money from the credit union

Complete necessary forms for joining the credit union, lodging money and withdrawing money

REVISE key terms: APR, CAR, lodge, share account. If necessary, visit the computer room and website at: for simple definitions

Ask class to tackle Worksheet 4:Word search of key terms

Worksheet 4:Word search

Find each of the following words:

WITHDRAW
BANK
SHARE
/ LOAN
DEPOSIT
CHEQUE
/ MONEY
ACCOUNT
INTEREST
/ SAVINGS
CAR
APR

Tip:Look across and down!

N / Q / L / E / L / E / E / N / U / A / E / N / M / W / E / A / C / P / O / S / V
O / M / O / N / E / Y / H / Y / H / S / W / I / T / H / D / R / A / W / S / D / A
A / I / A / E / E / I / N / A / V / H / W / U / A / I / T / E / R / N / T / T / A
A / A / N / A / I / N / T / E / T / C / C / P / A / N / A / W / T / P / U / N / T
O / V / I / A / N / T / S / N / Q / S / N / S / K / M / N / T / N / R / N / M / S
T / R / H / B / A / E / V / S / V / N / N / L / S / S / S / T / T / G / N / S / E
D / E / D / A / N / R / A / A / E / S / T / U / S / H / A / R / E / C / G / C / H
E / W / C / N / T / E / C / W / C / A / A / P / A / O / V / S / H / A / R / E / I
P / H / H / T / V / S / C / N / R / Q / E / S / H / I / I / L / P / A / W / U / C
O / E / E / T / O / T / O / L / O / U / C / S / B / A / N / K / O / O / Y / M / Y
S / A / Q / V / U / N / U / A / A / U / I / B / T / C / G / E / M / D / B / O / N
I / T / U / G / O / N / N / O / H / S / O / N / C / A / S / S / C / W / T / N / H
T / B / E / D / P / I / T / N / T / B / R / T / I / E / G / C / Q / N / E / T / T
O / O / S / S / W / E / E / S / N / N / V / I / C / H / A / R / B / T / K / I / Y
S / I / S / P / S / E / R / S / E / G / Q / S / B / I / M / N / I / U / N / I / K
C / T / C / T / D / N / R / A / E / K / D / E / A / N / A / I / I / O / T / O / O

UNIT 3 -- Account Options

Answer Key
WITHDRAW / BANK / SHARE / LOAN
DEPOSIT / CHEQUE / MONEY / ACCOUNT
INTEREST / SAVINGS / APR / CAR
L / C
M / O / N / E / Y / W / I / T / H / D / R / A / W
A / I / R
N / N
T
E / S
D / R / A / S / H / A / R / E
E / C / E / C / V
P / H / S / C / I
O / E / T / O / B / A / N / K
S / Q / U / G
I / U / N / S
T / E / T

UNIT 3 -- Account OptionsLearning Outcome 4

“List the services provided by banking institutions.”

BRAINSTORM:Quick show of hands – What services do banks offer? Write down responses.

Teacher prompts:Don’t forget:

- foreign exchange

- paying bills

- life assurance (as intermediaries only)

- pensions (as intermediaries)

- Other future needs…?

Ask the groups that visited the bank to report to class: Where is it? What are the opening hours? Were the services clearly visible? What information must you provide to open a savings account? Are there special rules or conditions for opening an account?

Check that everyone in the class understands the difference between a savings account and a deposit account. Check APR and CAR.

Teacher prompts: If necessary, explain with information from the Financial Regulator’s site: guide/bank accounts

Using the information gathered on Worksheet 2:My Research Visit, fill in bank details on the Worksheet 3:Shop Around table on the flip chart. Draw the students’ attention to the deposit return and the cost of credit at the different institutions. Which institution offers the best rate/s? Point out the CAR and APR also.

UNIT 3 -- Account OptionsLearning Outcome 5

Complete the procedures for the following bank transactions:

- Opening a current account - Opening a deposit account

- Lodging money into a bank a/c - Withdrawing money from a bank a/c

- Changing money from - Writing a cheque

one currency to another*- Using an ATM

REVIEW the topics covered in Learning Outcome 4

Outline the procedures for the following bank transactions:

-Opening a current account

-Opening a deposit account

-Lodging money into a bank account

-Withdrawing money from a bank account

-Changing money from one currency to another*

-Writing a cheque

-Using an ATM

ROLE PLAYS:Student wants to open an account. Bank manager (another student) explains terms and conditions

Young person, planning to set up business, wants to set up an account. Teacher asks if any student has a business idea, then plays supportive bank manager – asks student if he/she has a premises, enough funds to start the business, insurance etc.

DEBATE: Do the class wish to invite a representative from the bank, building society, post office or credit union for a talk? Teacher guides discussion.

Teacher prompts:Banks are big businesses – can offer many services. Better interest rates?

Credit union is non-profit making, and in the community. What about the interest rates?

Building society – useful if you are saving for a house?

UNIT 3 -- Account OptionsThe Visit

Teacher’s Notes

The Key Assignment for Unit 3 is a report on a discussion with a visitor to the school representing a credit union, bank or a building society.

Thus, the Visit may be organised to follow Learning Outcome 4, 5 or 7.

BRAINSTORM Student Worksheet 5, Questions for the visitor. You could divide questions into categories e.g. easy and hard. Pool results on the flip-chart.

DISCUSS how to ask these questions to ensure that all students participate in the visit. Match each person who asks a question with a ‘buddy’. This person will write down the answer to the question.

Teacher prompts:

EASY Qs:Where is your particular financial institution?

What are the opening hours?

How do I apply for a loan?

UNIT 3 -- Account OptionsThe Visit

HARD Qs:How do you decide who gets a loan with your credit union/bank/building society, etc?

Do you think you have competitive interest rates on loans?

How would they compare with an other credit union/bank/building society? (That is, is it cheaper or dearer to borrow money from you?)

Can I get a mortgage with you, or save for a house deposit?

What are the advantages of borrowing from the credit union, bank/building society?

Are there any disadvantages?

How old do I have to be before I can take a loan?

VISIT the computer room for further web research, write letter of invitation and question list, etc, for the visitor.

UNIT 3 -- Account OptionsThe Visit

Worksheet 5:Questions for the Visitor

UNIT 3 -- Account OptionsLearning Outcome 6

“Investigate the financial service provided by the Post Office and the advantages of using the Post Office.”

BRAINSTORM:Quick show of hands – What services does the Post Office offer? Write down responses.

Teacher prompts: - foreign exchange

- paying bills

- gift vouchers

- withdrawing cash from an AIB account

- savings & investments

- Other future needs……? (life assurance, but only as an intermediary – that is selling another institution’s product)

Ask the groups that visited the post office to report to class: Where is it? What are the opening hours? Were the services clearly visible? What information must you provide to open a savings account? Are there special rules or conditions?

WORKSHEET: Ask students to complete Worksheet 6: Advantages of the Post Office. Are there any disadvantages? Note them also, see worksheet attached.

Go to the flip chart table, Shop Around. Ask two interviewers from research team that visited the Post Office to fill in details for deposit rates, return on €126 and terms and conditions. Ask them; Can you borrow money from the Post Office? Draw the students’ attention to the deposit return at the different institutions. Which one offers the best rate/s at this stage?

VISIT the computer room. Get students to look up (box on Home Page). What else does the Post Office offer? Download application forms and complete them.

UNIT 3 -- Account OptionsLearning Outcome 6

Worksheet 6: Advantages of the Post Office

UNIT 3 -- Account OptionsLearning Outcome 7

“Investigate the financial service provided by Building Societies.”

QUESTIONS:Quick show of hands:

– How many different building societies can student name?

Teacher prompts:

EBS Building Society

ICS Building Society

Irish Nationwide Building Society

– What is the difference between a building society and a bank?

Teacher prompts:

A building society is mutually owned, by its customers. Unlike a bank, which has share-holders

Ask the groups that visited the building society to report to class: What is its name? Where is it? What are the opening hours? Are the services clearly visible? What information must you provide to open a savings account? Are there special rules or conditions?

Go to the flip chart version of table, Shop Around. Ask the building society researchers to add details for deposit and loan rates, etc. Get students to complete their own Worksheet 3: Shop Around table.

BRAINSTORM. Ask students what services the building society offers.

Teacher prompts:Don’t forget:

- mortgages

- savings and investments

- foreign exchange

UNIT 3 -- Account OptionsLearning Outcome 8

“Explore the various options for an investment of €126 (£100 in old money)”

BRAINSTORM:Ask the class – How would they spend €126? Then, how would they invest it?

Teacher prompts: - A mini-business at school? (eg. setting up a Tuck Shop)

- Lotto tickets

- A vintage CD collection

But, would you get your money back?

DEBATE: Suggest they invest with a financial institution instead. Display the completed Shop Around table on flip chart. Ask students to interpret it:

-Which institution offers the best return on deposits?

-Do any have special terms and conditions?

-Is there much difference between the rates?

-Where students surprised by the answer?

CONCLUSION: Where would students invest their money and Why?

WORKSHEET: Ask students to complete Worksheet 7: Which is Which?

UNIT 3 -- Account OptionsLearning Outcome 8

Worksheet 7: Which is which?

Match up the right pairs

Glossary-- To be fine-tuned and added to as required

APR:A percentage to show the amount of interest and other costs (such as set up charges) a consumer pays when they borrow money from a bank, building society or credit union. It enables you to compare like with like when you shop for a loan.

CAR:The interest rate paid by a bank or building society on your savings each year. As your money grows, with interest being added to the lump sum, interest is paid on this compound sum.

Bank:A commercial institution that takes deposits and lends money to its customers

Building Society: A financial institution that is owned by its customers. They developed from so-called ‘friendly societies’ that were non-profit making and were also mutually owned by the customers

Credit union: Like building societies, credit unions are owned by their customers who earn ‘shares’ in the credit union when they save money there. Unlike building societies, credit unions have a common bond which may be geographical or defined by some other common interest. Thus, to join a particular building society you may have to live in the neighbourhood or belong to an organisation such as a trade union.

Etc///