Retirement - Start Saving Early
Activity Description
If students plan to retire at the age of 65, they should understand the total interest that can be earned if they start saving money at different ages.
This interactive worksheet activity helps students understand the concept of opportunity cost in the context of saving money, which is a fundamental principle in economics and finance. By adjusting the age at which they start saving money, students will observe the impact on potential gains and discover how powerful early saving and investing can be. They will also learn that starting late means losing a significant amount of interest money that they would have earned had they started early, and this is known as opportunity cost.
Through this worksheet, students will understand the power of compounding and how it amplifies savings and investment growth over time, highlighting the benefits of starting early.
This classroom-ready worksheet is interactive and dynamic, and can be assigned to your classroom with just a few clicks. The worksheet is auto-scored, and teachers can monitor student progress in real-time through the console.
Learning Objective
In this hands-on exercise, students will assume that they are retiring at the age of 65 and are starting to save every month $100 for their retirement. They will see the effect of starting to save at different ages. Students will find that earlier they start, they can accumulate a lot of compound interest and hence can easily build their retirement fund.
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