1. Money Matters
Key Stage 3
Saving

2. If you saved £1 a week for ONE year, how much would you save?
365 days
7 days / =
52 weeks
£1.00 =
£52.00 /
52 weeks

3. Calculating interest (AER)…
e.g.)If you put £50 into a bank account with an interest rate (AER) of 15%, how much would you have at the end of the year?
What is 15% of £50?
50 (£) /100 x 15(%) =
£7.50 a.
Add the interest to the starting amount…
£50 ( starting amount)
+ £7.50 (AER) =
£57.50 b.

4. Total Interest earned:
Calculating compound interest…
e.g.) If you left your £50 in the bank for 2 years and it had an interest rate of 15% how much interest would you earn?
Work out the interest for
Year 1
i.e.) 15% of £50
Add it to the starting amount
Calculate the interest for Year 2
Add it to the Year 1 total
Total Interest earned:
£ £8.62 = £16.12
Year 1
Year 2
£50.00
£57.50
£57.50
£66.12
/100 x 15(%)
/100 x 15(%)
£7.50
£8.62

5. Answers… 1. Imagine you put £100 into a savings account…
b). 5% - £105
c). 10% - £110
2. If you kept your £100 in the bank for 2 years with an interest rate of … you would earn £… in interest…
a). 1% - £2.01
b). 5% - £10.25
c). 10% - £ 21.00

6. Today we have learnt…
That planned saving may be a necessary part of financial security
We can plan savings to meet our longer term needs
That we are responsible for our future financial security