Saving money in a shoebox or piggy bank that stays with you

PROs: 

1. You always know where your money is.

2. You can use your money whenever you need it.

3. You always know exactly how much you have. 

CONs: 

1. Over time, money loses value. (Think of a grandparent talking about how much hamburgers used to cost. 

2. If you lose your money (theft, fire, etc.), it is gone and you probably can't get it back.

Holding your money in a savings bank account

PROs:

1. Your money is protected and insured against theft, fire, etc.

2. You are guaranteed to grow your money over time at a fixed (permanent) rate.

3. Your money is used by the bank to help others start businesses, buy homes, etc. 

CONs: 

1. There may be penalties for withdrawing too much/any of your money.

2. The fixed amount of growth is usually small -- between 2 and 5% per year

Purchasing a "share" of a company, idea, event, currency, or even government

PROs:

1. The growth can be significantly higher than any saving account offers

2. You can choose the companies/ideas your money works for.

3. You could be rewarded regularly on top of the growth in  your investment.

CONs:

1. You have to sell your investment in order to access your money.

2. While the growth possibilities are higher, there is also a risk of losing some or even all of your money

Piggy Bank

$70.43

How is this possible? 

Your $100 in 2015 could purchase $100 worth of goods and services in 2015. 

But because of inflation (the increase in prices over time), that $100 from 2015 can only purchase $70.43 worth of goods and services in 2025.

Savings Account

$123.20

How is this possible?

Your $100 in a savings bank account increases by (on average) 2.32% every year. Multiply that by 10 years and your $100 in 2015 has earned $23.20. 

Stock Market

$0 - ???

Lets look at two different stocks in 2015 and see what might have happened to your $100.

Lets say you used your $100 to buy shares of PARTY CITY. In 2015, one share of PARTY CITY cost about $25. So, you could have purchased 4 shares of stock ($100 divided by $25 equals 4)

If you sold your 4 shares of PARTY CITY stock today (September 2025), your $100 has now become

$0.00 

That is because Party City went out of business in 2013. 

HOWEVER, if you invested your $100 in BEST BUY in 2015, you would have purchased 4 shares of stock (one share of BEST BUY cost $25 in September 2015)

If you sold your 4 shares of BEST BUY stock today (September 2025), your $100 has now become

$310 (more than 3X!!)

That is because the price of one share of BEST BUY stock went up to $77!

Use this link to connect the Banzai Junior resource, a budget and financial literacy game for students to learn how to manage money.

Use this link to connect students to an interactive learning resource that introduces concepts behind the stock market.

Use this link to find resources for grades 3-6 that introduce students to concepts surrounding money and investments.