Time is money!

Introduction

Do you need to be over 18 to invest in your financial future?

Do you need a job in order to save money?

If you think that the answer to these questions is yes, think again!

Investing in your financial future by saving regularly is something that you can start doing right now!

 

Why is this important?

You can take control of your financial future by starting to save right now. It doesn’t matter if you only have a small amount of money to save. Learn how to harness the power of compound interest by saving early, saving regularly, and leaving your money to grow over time. 

Note: 

Being gifted money and having existing savings are both things that will allow you to save without having a job.

Setting up bank accounts requires the assistance of parents/guardians if you are under 18! 

Task

Your job in this WebQuest is to investigate the effect of compound interest on long term savings and use that information to make some plans for your financial future. 

Process

Before you start...

So what is compound interest and how does it actually work? Watch the brief video summary to find out more:

 

Task 1 - Why save regularly?

Download and complete and save Task 1 worksheet – Why save regularly?  

(Source: https://financialbasics.org.au/wp-content/uploads/2024/10/7_TIME_IS_MONEY_task1_why_save_regularly.docx) 

 

Task 2 – Start saving now!

Download and complete Task 2 worksheet – Start saving now! Save a copy of your completed worksheet.

(Source: https://financialbasics.org.au/wp-content/uploads/2024/10/7_TIME_IS_MONEY_task2_start_saving_now.docx) 
Evaluation

Submit your responses to Tasks 1 & 2 to your teacher.

Your teacher will review your work and provide feedback.    

Conclusion

The easiest place to start investing in your financial future is to save in an interest-earning bank account or term deposit – the higher the interest the better!

Anyone can use the power of compound interest and time to help set themselves up for a more secure financial future.

What can you do to be a savvy saver?

  • Use a comparison site such as Canstar to find the best savings account for you.
  • Contact your bank for a better deal if you find another bank offering a higher savings account interest rate or other benefits that you are not receiving.
  • Don’t be afraid to change banks if your current bank won’t match a better interest rate or other benefits offered elsewhere.
  • Check the fine print to make sure you aren’t being charged fees on your savings account!

Want to learn more about investing? Ask your teacher to download the investing resources from www.financialbasics.org.au & sign you up for the ESSI Money Game.

Credits

Credits

This work is adapted by the content owners from the Financial Basics Foundation OFL (Operation Financial Literacy) resource Module 8: Investing - where do I start? Check out the original resource for more teaching and learning activities in this content area.                                                

Financial Basics Foundation resources are free for all Australian educators. You can access these resources here.                                                                                                                             

 

Other

Financial Basics Foundation Contact information

Connect with Financial Basics Foundation for more great resources and ideas, and become part of the #FinLit community!

YouTube: https://www.youtube.com/@financialbasics

Facebook: https://www.facebook.com/financialbasicsfoundation       

Twitter: @Financial_Basic

Email: info@financialbasics.org.au  

URL: www.financialbasics.org.au 

Teacher Page

Why should your students do this WebQuest? All of your students will need a bank account at some point in their lives, and some may already have one. The earlier they learn how to use an interest-earning savings account to leverage the power of compound interest over time, the greater the opportunity they will have to set themselves up to maximise their savings towards a more secure financial future.

WebQuest Goal: This investigation into the effects of compound interest on savings aims to deliver an appreciation of the importance of and benefits to be derived from saving early and regularly.

Time required to complete this WebQuest: Approximately 70 minutes.

Solution:  A solution for Tasks 1 & 2 is available through the Financial Basics Foundation member portal. Login to your account or sign up here if you’re not already a member. Once you’ve logged in, check out all of our other WebQuests and Resources by clicking on the Teacher’s Toolkit menu.                                                                                                             

 

Advice from FBF:

  • Students complete the Tasks 1 & 2 worksheets electronically by typing their responses in the text entry fields. Alternatively, students can print and complete with handwritten responses.
  • Tasks in this WebQuest have been designed for students to complete individually.
  • Register your students for Financial Basics Foundation’s ESSI Money Game to help them experience the effects of compound interest in a real-life gamified personal finance educational simulation.  
  • If required, Mr Eddie Woo provides a detailed breakdown of the difference between simple and compound interest on Youtube titled ‘The difference between Simple and Compound Interest’ - https://www.youtube.com/watch?v=FZBxvzAaGy4 (8.53)                                                            

Standards

The content and tasks in this WebQuest have been mapped to the following Australian Curriculum elements:

  • Economics and Business (Knowledge and Understanding) - Elaboration: Investigating different types of investment that enable people to accumulate savings for the future (for example, shares, term deposits, managed funds) (ACHEK040)
  • Economics and Business (Skills) - Economic reasoning, decision-making and application: Apply economics and business knowledge, skills and concepts in familiar, new and hypothetical situations (ACHES047)
  • Mathematics (Number and Algebra) - Money and financial mathematics: Connect the compound interest formula to repeated applications of simple interest using appropriate digital technologies (ACMNA229). Elaboration: Working with authentic information, data and interest rates to calculate compound interest and solve related problems.