Savings : Meaning , Types and Requirements For Opening a Saving account
Subject : Social Studies
Topic : Savings : Meaning , Types and Requirements For Opening a Saving account
Class : Primary 4
Term : Second Term
Week : Week 10
Previous Knowledge : Pupils have previous knowledge of
Why division of labour is necessary in Agricultural Industry
that have been taught in their former lessons and classes
Behavioural Objectives : At the end of the lesson , pupils should be able to
1 say the meaning of savings
2 mention the reasons why people say
3 explain how people saved in the olden days
4. Write out modern days of savings
5. explain the requirements for opening a saving account in any of the Nigerian commercial banks
Methods Of Teaching
- Discussion
- Explanation
- Dramatization
- Dialogue
- Story telling
- Questions and Answers
- Role Modelling
Instructional Materials
- Wall Charts
- Pictures
- Online materials
- Textbooks
- Scheme of work
- Workbooks
Content
What is saving ?
Saving simply setting aside a specific amount of money for future use .
In the olden days people saved cowries , jewelleries and gold .
Types of Savings
1. Traditional ways of savings in the olden days : This involves the olden ways of savings . It is how people saved in the olden days which involved
saving in pots
digging hole and saving in the hole
saving under the bed
giving the credit or thrift collector (Alajo ) etc
2. Modern ways of savings nowadays : Things have changed very fast and a lot of things have changed too . The ways people save money now a days have changed , These are the few examples of how people save money now a days
saving in banks
fixing it in fixed deposit account
buying shares
government bonds
mutual funds
insurance
cooperative societies
investment funds
pension funds etc
Why do people save ?
People save because of the following reasons
To make money available for future expenses
To make provision for urgent unexpected emergency
To start a business
To make a capital purchases
To buy a major asset like land or motor vehicle
To earn interest or dividend on the money
To prevent the money from being stolen
Types of Banks In Nigeria
A bank is a financial institution or organisation where we save and borrow money.
A bank can be owned by the government, big companies or wealthy people.
Banking is the business of operating a bank
1. Regulatory Body : The one and only bank that falls under this category is The Central Bank Of Nigeria. The CBN is the apex bank in Nigeria . It is the bankers’ bank. it is the lender of the last resort . It is the regulatory body that controls the activities of all other banks and financial institutions in Nigeria . You cannot say your money in central bank because the bank does not collect deposits from individuals .
2. Commercial Banks : Commercial banks are banks that perform commercial activities for their customers . These commercial activities involve accepting deposits from customers , opening of accounts for customers etc . Examples of commercial banks in Nigeria are Guaranteed Trust bank , United Bank for Africa, Zenith bank etc
3. Merchant Banks : These are banks that deals with large scale importation and exportation for their customers . These types of banks are primarily for merchant traders
4. Mortgage Banks : These are the types of banks that are specialized in acquisition , ownership and sales of houses
5. Micro Finance Banks : These are banks that are set aside to help small and micro business to start up , monitor them and nurture them to greater height. Examples of these micro finance banks are LAPO micro finance bank
Requirement For Opening A bank Account
1. Means of identification eg National Identification Number (NIN), Bank Identification Number (BVN), Driver’s License, International Passport
2. Proof of address of domicile in Nigeria eg PHCN bill or any utility bill
3 Two passport sized photograph
4. Initial deposit for issuance of ATM
5. Bank Application form to open a bank account
Presentation
The topic is presented step by step
Step 1 : He revises the previous topics
Why division of labour is necessary in Agricultural Industry
Step 2 : The class teacher introduces the new topic
- Savings refer to the portion of income that is not spent, but rather set aside for future use or investment.
- People save for various reasons, including:
- To build an emergency fund for unexpected expenses
- To achieve long-term financial goals, such as retirement or buying a home
- To provide for their family’s future financial security
- To invest in assets that will appreciate in value, such as stocks or real estate
- To save for short-term goals, such as a vacation or down payment on a car.
- In the olden days, people saved in several ways, including:
- Keeping their money in a safe place, such as a home safe or buried in the ground
- Saving food and other resources for future use, such as preserving meat or drying fruits and vegetables
- Bartering goods and services, rather than using money
- Keeping a ledger or record book to track their expenses and savings.
- Modern ways of savings include:
- Opening a savings account at a bank or credit union
- Investing in stocks, mutual funds, or other financial instruments
- Contributing to a retirement account, such as an IRA or 401(k)
- Using budgeting and financial planning tools to track expenses and savings
- Using automatic savings plans or apps to set aside money on a regular basis.
- The requirements for opening a savings account in a Nigerian commercial bank may vary, but typically include:
- A valid form of identification, such as a passport, driver’s license, or national ID card
- A minimum deposit amount, which may vary depending on the bank and type of account
- Proof of address, such as a utility bill or bank statement
- Personal information, such as name, address, and contact information
- Some banks may require additional information or documentation, such as proof of employment or income
Step 3 : The class teacher allows the pupils to give their own contributions and he or she corrects them when the needs arise
Evaluation
1 What is the meaning of savings ?
2 Mention two reasons why people save ?
3. Mention four examples of commercial banks in Nigeria
4. What is the full meaning of CBN ?
5. Mention two types of banks in Nigeria
Conclusion
The class teacher gives out a short note and he or she goes round to do the necessary marking .
Assignment
- What is savings? a. The portion of income that is spent on luxury items b. The portion of income that is invested in the stock market c. The portion of income that is set aside for future use or investment d. The portion of income that is donated to charity
- Why do people save? a. To buy luxury items b. To achieve long-term financial goals c. To impress others with their wealth d. To spend all their money before they die
- How did people save in the olden days? a. By investing in stocks and mutual funds b. By keeping their money in a home safe or buried in the ground c. By using budgeting and financial planning tools d. By opening a savings account at a bank
- What are modern ways of saving? a. Keeping money in a home safe b. Bartering goods and services c. Investing in stocks and mutual funds d. Using a ledger or record book to track expenses and savings
- What is a savings account? a. An account used to withdraw money on a regular basis b. An account used to deposit money on a regular basis c. An account used to transfer money to another person or business d. An account used to pay bills and expenses
- What is a checking account? a. An account used to withdraw money on a regular basis b. An account used to deposit money on a regular basis c. An account used to transfer money to another person or business d. An account used to save money for future use
- What is the minimum deposit amount required to open a savings account in a Nigerian commercial bank? a. It varies depending on the bank and type of account b. N500 c. N5,000 d. N50,000
- What is required to open a savings account in a Nigerian commercial bank? a. A valid form of identification b. A minimum deposit amount c. Proof of address d. All of the above
- What is a fixed deposit account? a. An account used to withdraw money on a regular basis b. An account used to deposit money on a regular basis c. An account used to save money for a specific period of time at a fixed interest rate d. An account used to transfer money to another person or business
- What is a joint account? a. An account owned by one person b. An account owned by two or more people c. An account used to withdraw money on a regular basis d. An account used to deposit money on a regular basis
