OK,
now that you have a little
money in your pocket, what
do you do with it?? Most
people spend and buy,
spend and buy,spend and buy. You've
definitely got to pay
the bills, and you're certainly
entitled to treat
yourself every now and then,
but let's think about why it might
make
sense to save.
To
save means to put aside money
for use at a
later date.
If you put aside a little bit
at a time, your money will begin
to grow and grow.
Your
savings can also grow by
earning interest.
This happens when you put it in
a savings account.
Why
do people save?
Click
on the faces
below to see others' answers.
What
about YOU?
Why
do you want to save?
Write your answers in your Money Notebook.
These
are all good reasons to save!
People usually save to buy things
they can't yet afford. -
OR -
They
save to make sure they have
a good future.
Congratulations!! You've
done a great job learning
about
why to save. Before you move
on to
the next Big
Idea,
feel free to
Play a Savings Game... In
this game, you'll be spending
some time in the Allowance Room
UP
TO LIST OF BIG IDEAS
II.
Savings Goals
The
things that we save for are called
our Savings
Goals. People can have both
short-term and long-term savings
goals.
Short-term
savings goals usually take less
than one year to
achieve. Long-term
savings goals usually take more
than one year to achieve.
Long-term
or Short-term SAVINGS GOAL?? You decide.
College Tuition
Tickets
to WWE Match
short-term
long-term
short-term
long-term
Birthday
Gift for Mom
New
Car
short-term
long-term
short-term
long-term
What
about YOU?
What
are your savings goals?
Write
your answers in your Money Notebook.
People
save for different
types of things:
You can save for something you NEED
for survival (like food or a warm
winter coat). You
can also save for something you
WANT (like
a new video game
or a trip to Disney World).Wants
are things you would like to have
but can livewithout.
Which
of the things below is a need and
which is a want?
Interest
is a kind of payment that banks and
credit unions give you for keeping
your money in a savings account
at their company.
Interest is
usually talked about as a percentage,like
2% or 5%. The
higher the interest rate,
the more money you'll earn.
When
you are saving, your bank or financial
company adds interest
to your savings at regular intervals
(for example, every week or every
month).
If you don't
use any of the money in your account,
the bank will pay you interest on
your interest as well as on the original
amount you put in your savings account.
This is called compound interest.
Compound
interest is the real power of a savings
account! Click to see a step-by-step
example of how compound interest works...
Let's
apply it to your own life now. Click
on the calculator to figure out how
you can use the power of compound
interest. When you're finished, continue
on to the next Big
Idea!
UP
TO LIST OF BIG IDEAS
IV.
Where to Save
There
are many different
places to save
money.
How
many places to save
can you name?What are the
pros and cons of each option?
Looking
at the "pros and cons" means comparing
the
reasons for
doing something (the
pros) and the
reasons
against doing something
(cons).
See
WHERE they
save.
Place
to Save
Reasons
FOR (Pros)
Reasons
Against (Cons)
Under the mattress
— Easy
access: Money is
always
available
— Unsafe:
Money could be stolen or burned
in a fire. — Doesn't
earn interest (make money)
for you. — Doesn't
help you build a good credit history
In
the money jar or piggy bank
— Easy
access: Money is
always available
— Unsafe:
Money
could be stolen or burned
in a fire. — Doesn't
earn interest (make money) for you. — Doesn't
help you build a good credit history
In
a bank or credit union
— Safe:
Money is
protected
by the
federal
government. — Earns
interest. — Helps
you build a
good
credit history
— Money
is not always easily available;you
have
to go tothe
bank to take it out. — You
might have to pay fees if you
don't keep
enough money in youraccount.
Lay-away plan at a store
— Safe:
You're on record
as putting aside
a certain amount
of money for
your purchase.
— Doesn't
earn interest (make money)
for you. — You're
stuck buying the certain item on
Money
Center 
Write your answers in your Money Notebook.
