Bank statements as a financial tool
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Introduction
In this activity, students learn that bank statements are a rich source of information and can be used as a money management tool. It teaches them the difference between credit and debit and that managing money involves keeping track of their income and spending.
This learning provides a foundation for students to understand how financial records can be used as a tool to inform government decision-making in relation to tax revenue and spending which they will encounter in later years of the curriculum.
Achievement standard
By the end of Year 8, students explain how markets influence the allocation of resources to the production of goods and services. They explain ways that businesses adapt to opportunities in markets and respond to the work environment. They describe the importance of Australia’s taxation system and its effect on decision-making by individuals and businesses. Students explain why individuals and/or businesses budget and plan.
Students develop a range of questions to investigate an economic and business issue. They locate, select and organise relevant information and data. They interpret information and data to identify economic and business issues and trends, and describe economic cause-and-effect relationships. They develop a response to an economic and business issue. They identify and evaluate potential costs and benefits. Students use economic and business knowledge, concepts, terms and research findings to create descriptions and explanations.
Content descriptions
Economics and Business Knowledge and Understanding
Processes that individuals and/or businesses use to plan and budget to achieve short-term and long-term financial objectives. (AC9HE8K05)
Economics and Business Skills
Interpret information and data to identify economic and business issues, trends and economic cause-and-effect relationships. (AC9HE8S03)
Develop a response to an economic and business issue, identifying potential costs and benefits. (AC9HE8S04)
Teacher resources
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Interpreting bank statements
Student learning resources
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What does a bank statement tell you?
Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group.
- Ask students if they have a bank account and if so, whether they view their bank statements. Tally the number of students who have bank accounts and the number who view their statements.
- Use slide 2 of the visualiser to explain the following about the sample bank statement:
- codes
- opening balance
- amount of money that was deposited, which is called ‘credit’
- amount of money withdrawn, which is called a ‘debit’
- balance following each transaction.
- Use slide 3 of the visualiser to explain the person’s net financial position for the month of June, including the closing balance.
- Discuss the scenario on the visualiser and elicit responses on what it tells students about this person’s income and spending patterns. Prompts may include:
- Did this person have more or less money at the end of the month?
- What did they spend most of their money on?
- Are they living within their means, that is, spending what they earn or less?
- What advice would you give to this person to support them to save money or at least live within their means?
- Students complete the worksheet.
- As a class, discuss the importance of using bank statements as a money management tool.
- Ask students if they will now use bank statements as a tool.
- Revise the tally that was recorded on the board at the start of the lesson.