Students learn a lesson about money market accounts, including how they work, their benefits over traditional savings accounts, and why they’re a smart savings option. They explore the flexibility, higher interest rates, and secure savings these accounts offer, along with tips for maximizing interest, understanding transaction limits, and avoiding fees. Whether saving for emergencies or short-term goals, students gain insights to determine if a money market account aligns with their financial needs.

CONCEPTS

Use this video lesson on money market accounts and how they work. Learn basic related concepts of

• Interest Rates
• Account Accessibility
• Emergency Funds
• Financial Decision-Making
• Savings and Investments
• Comparing Accounts
• Risk Management
• Financial Goals
• Financial Planning
• Saving Strategies
• Banking Options
• Evaluating Fees

GRADE LEVEL

9-12th grades. High School. Adult Education.

TIME REQUIRED

30-45 Minutes. It may be necessary to adjust the lesson plan and allocate more or less time to certain topics, depending on the needs and interests of the students. More in-depth lesson plan below will be longer.

PROCEDURE

Hand out the worksheet below (see the GET LESSON button near the bottom of the page).

Show students the video and have and have them complete the worksheet.  Review the questions on the worksheet.  For a more in-depth lesson, complete the lesson plan below.

Money Market Accounts Explained: Beginner’s Guide How They Work

After watching the video, ask students to summarize the main points made in the video.

 

Lesson Plan: Money Market Accounts Explained

 

Grade Level/Audience: High School Students / Financial Literacy Classes

Duration: 60 minutes

Objective:

• Students will understand what a money market account (MMA) is and how it works.
• Students will compare MMAs to other financial tools like savings accounts and certificates of deposit (CDs).
• Students will identify the benefits, limitations, and scenarios where an MMA might be suitable.

Materials Needed:

• Video: “Money Market Accounts Explained”
• Whiteboard or chart paper
• Handouts (comparison table and quiz)
• Internet access (optional)

Lesson Plan:

• 1. Introduction (10 Minutes)

  • Begin with a discussion: “What do you currently know about savings accounts, checking accounts, and interest rates?”
  • Introduce the concept of a Money Market Account (MMA) as a hybrid savings-checking account.
  • Provide context: “We’ll watch a video explaining MMAs and compare them to other financial tools.”

• 2. Video Viewing (10 Minutes)

  • Play the video: “Money Market Accounts Explained.”
  • Ask students to take notes on the following key points:
    • What is an MMA?
    • How does it compare to checking and savings accounts?
    • What are the benefits and drawbacks?

• 3. Group Discussion (10 Minutes)

  • Facilitate a class discussion using the following questions:
    • What is the main benefit of a money market account?
    • Why do you think banks can offer higher interest rates on MMAs?
    • How is an MMA different from a traditional savings account?
    • When might an MMA not be the right financial tool for someone?

• 4. Activity: Financial Tool Comparison Chart (15 Minutes)

  • Divide students into small groups.
  • Have students create a chart with columns “Savings Account,” “Checking Account,” “CD,” and “Money Market Account.”
  • Instruct each group to:
    • List at least 3 benefits and drawbacks for each type of account.
    • Identify situations where each account might be the best option.
  • Ask groups to share their findings with the class.

• 5. Quiz: Money Market Account Knowledge (10 Minutes)

  • Administer a short quiz based on the video.
  • Review answers as a class to reinforce key concepts.

• 6. Wrap-Up and Reflection (5 Minutes)

  • Pose the reflection question: “Do you think a money market account would be a good tool for you or your family? Why or why not?”
  • Encourage students to research MMAs offered by different banks and compare rates and fees as homework.

Extensions:

• Research and Presentation: Students can explore interest rates of MMAs at various banks and present findings.
• Real-World Application: Ask students to create a savings plan incorporating an MMA for an emergency fund.

Assessment:

• Participation in group discussions and activities.
• Completion of the comparison chart.
• Performance on the quiz.

Key Takeaway:

• Money market accounts offer a great balance between earning interest and accessing your money, making them a valuable tool for financial planning.

Lesson Resources

• Money Market Accounts Explained: Beginner’s Guide How They Work