Investing · Video Lesson
What is Social Security?
Social Security is a federal program funded by payroll taxes that provides income in retirement and other benefits. This lesson explains how it works, how today’s payroll contributions translate into future benefits, and why students should treat it as one part of a diversified retirement plan that also includes 401(k)s, IRAs, and investments.
For Teachers
Lesson at a glance
- Topic
- Investing & Retirement
- Grade Level
- Grades 9–12 + adult
- Resource Type
- Video Lesson + Worksheet
- Estimated Time
- 30–45 minutes
- Format
- Class discussion + activity
- Materials
- Video, worksheet, whiteboard
What Students Learn
Learning objectives
- Explain what Social Security is and who it helps
- Describe how payroll taxes fund the program
- Explain how today’s contributions affect future benefits
- Discuss concerns about long-term sustainability
- Explain why Social Security should be one part of a diversified retirement plan
Video Lesson
Watch: What is Social Security?
Materials
What you’ll need
- Internet access for the video
- Printed copies of the worksheet quiz (one per student)
- Whiteboard or projector
Key Terms
Vocabulary
- Social Security
- A federal program that provides retirement, disability, and survivor benefits.
- Payroll tax
- Taxes taken from wages (FICA) that fund Social Security and Medicare.
- Benefit
- A payment received from Social Security, such as in retirement.
- Retirement planning
- Preparing financially for the years after you stop working.
- 401(k)
- An employer-based retirement savings account.
- IRA
- An Individual Retirement Account for personal retirement saving.
For Teachers
Lesson plan
Estimated time: one 30–45 minute class period.
Lesson sequence
- Introduction (8 min). Ask whether students have seen “FICA” or “Social Security” on a pay stub. Establish that they’re already contributing once they work.
- Watch the video (15 min). Play the lesson video. Ask students to note how the program is funded and how benefits are earned.
- Discussion (12 min). Cover what Social Security is, how payroll taxes fund it, how contributions affect future benefits, sustainability concerns, and why to diversify retirement savings.
- Activity (8 min). Groups list actions they can take now to prepare for their financial future and share with the class.
- Quiz (8 min). Students complete the printable quiz; the answer key is included for teacher use.
Assessment
Assess participation, the activity, and the printable quiz.
This lesson is for educational purposes only and is not financial advice.
Discussion
Discussion questions
- What is Social Security, and why is it important?
- How is Social Security funded?
- How do your contributions while working affect your future benefits?
- Why should young people pay attention to Social Security now?
- Why is it wise to have other retirement savings besides Social Security?
Printable Quiz
What is Social Security? — Quiz & Answer Key
Multiple-choice quiz based on the video, with an answer key for teacher use.
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