Where Money Is Kept and Lent
A 45-minute Grade 3 lesson on the institutions besides banks that hold, lend and pool people's money.
Where Money Is Kept and Lent is a free 45-minute Grade 3 to Grade 5 social studies lesson plan for Common Core standard D2.Eco.9.3-5 — describe what financial institutions other than banks do. It is timed across 5 sections, gives the exact wording to use where the wording carries the mathematics, names 3 misconceptions with the teaching move that addresses each, and ends with an exit ticket and a printable worksheet with its answer key.
- Grade:
- Grade 3 to Grade 5
- Length:
- 45 minutes
- Standard:
- D2.Eco.9.3-5
Grade 3 to Grade 5 · Economics
D2.Eco.9.3-5
Describe the role of other financial institutions in an economy.
Objective
Students will be able to say what a given financial institution does and who it serves.
Students are successful when they can
- Says what an institution does.
- Names who uses it and why.
- Distinguishes pooling risk from lending.
What you need
- Cards for savings club, insurance office, building society, friendly society
- The workhouse register, as what happens without any of them
- The printable practice sheet linked at the end of this plan
The lesson
Warm-up — illness and no wages
5 min- Read Sarah Hall's line from the register: no work since the mill shut.
- Ask what could have stood between her and the workhouse.
Teach — pooling and lending
15 min- Introduce the friendly society: members pay in, and are paid when illness stops them working.
- Name what it does: many people share one person's bad luck. That is pooling.
- Introduce the building society: members' savings are lent so members can buy houses. That is lending.
- Ask what a savings club does. Pooling of a different kind: turns to draw out.
- Add the pawnbroker as lending against an object, and ask who uses it.
- Say the two jobs plainly: spreading risk, and moving money from savers to borrowers.
“Is this spreading a risk, or moving money from a saver to a borrower?”
Guided practice — match and classify
13 min- Pairs match eight institutions to what they do.
- They mark each as pooling or lending.
- Groups decide which would have helped Sarah Hall most.
Independent practice
9 min- Students complete the 'Where Money Is Kept and Lent' page.
- Watch for insurance described as saving.
Close
3 min- Ask which of these institutions still exists under a different name.
What goes wrong, and why
Each of these is a reasoning error rather than carelessness. The fix addresses the reasoning.
Says insurance is saving your own money.
Why: Both involve paying in regularly.
Fix: You may pay in for years and take nothing out. It is many people covering one person's loss.
Thinks all of these are banks.
Why: Bank is the word for money institutions.
Fix: A pawnbroker takes no deposits. Ask what each one actually does.
Assumes everybody could use them.
Why: They existed, so they were available.
Fix: Membership cost money weekly. Ask who could not spare it.
If they are not there yet
- Four institutions rather than eight.
- Give the description and ask which institution it is.
If they finish early
- Say why a friendly society needs many members to work.
- Explain what happens to a savings club if one member stops paying.
- Design a society for the boatmen of 1846.
Exit ticket
What does a friendly society do, and how is that different from a building society?
What to look for: One pays members when illness stops them working; the other lends savings so members can buy houses. Calling both banks means the two jobs are still fused.
Printable practice for D2.Eco.9.3-5
Free to print and copy, answer key included. Each sheet can generate a fresh set of problems for a retake.
- Where Money Is Kept and LentDraw a line from each one to what it does.
Questions about Where Money Is Kept and Lent
How long does the Where Money Is Kept and Lent lesson take?
45 minutes, split across 5 timed sections: warm-up 5 min, teach 15 min, guided practice 13 min, independent practice 9 min, close 3 min. The minutes are stated per section and add up to the stated length, so the plan can be cut or extended at a section boundary rather than abandoned halfway.
Which standard does Where Money Is Kept and Lent teach?
D2.Eco.9.3-5 — D2.Eco.9.3-5, Economics for Grade 3 to Grade 5: “Describe the role of other financial institutions in an economy.” In plain terms, describe what financial institutions other than banks do.
What do I need to teach this lesson?
Cards for savings club, insurance office, building society, friendly society, the workhouse register, as what happens without any of them and the printable practice sheet linked at the end of this plan. Everything listed is either ordinary classroom equipment or a free printable from this site — there is nothing to buy and nothing to prepare beyond photocopying.
What mistakes should I expect in this lesson?
Three, each a reasoning error rather than carelessness: says insurance is saving your own money; thinks all of these are banks and assumes everybody could use them. The plan gives the thinking behind each one and the teaching move that addresses the thinking rather than the symptom.
How do I know whether the lesson worked?
The exit ticket asks: “What does a friendly society do, and how is that different from a building society?.” One pays members when illness stops them working; the other lends savings so members can buy houses. Calling both banks means the two jobs are still fused. That tells you whether the class needs a reteach or a thirty-second conversation before you plan tomorrow.
Is there a worksheet to go with Where Money Is Kept and Lent?
Yes — 1 printable D2.Eco.9.3-5 worksheet, linked at the end of the plan and free like the rest of the site. Each one comes with an answer key and 25 versions, so the practice after the lesson can be a different paper on every desk.
Is Where Money Is Kept and Lent free to use?
Yes. The plan, its printables and their answer keys are free to read, print and photocopy for your own class, with no account and no email capture. It was last reviewed on 7 September 2026. Please do not resell it or republish it as your own.
Last reviewed 2026-09-07. Aligned to D2.Eco.9.3-5 of the C3 Framework for Social Studies State Standards.