I am a security manager at LaGuardia Airport. I make $28,000
a year at that job. After taxes, I bring home about $1,700 each
month.
I
work at a toy store. My salary is $7 per hour, so every month
(after taxes) I earn about $1,000. On the side, though, I have
a little business making invitations for engagement and birthday
parties. In a good month, I make about $200 for my invitations.
Well….
my mom gives me $10 a week if I do the dishes and pick up my little
brother from school two times a week. And on Saturdays when I
visit my grandma at the nursing home, I show the older people
how to use computers. The people at the nursing home give me cookies
and sometimes they give me money. Last week, they gave me $5.
My
uncle gives me $40 a week if I help him at his grocery store.
Then, sometimes my friends and I DJ at parties. We usually get
about $100 for a party, but we split it. So, I get about $25 every
time we do a party.
I
sometimes find dimes and quarters in the sofa or in the coin
return of the pay phone. Let me tell you; every little penny
counts!
Umm..
I don't have much money now, but umm… I'm thinking about
selling my blood. If that doesn't work, well… err.. maybe
I can find somebody rich to marry.
How
about YOU?
What
do you do to spend
less when you go shopping?
Write
your answers in your Money Notebook.
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.
I
want to buy a house, but I don't have enough money yet. So I'm
saving to buy a house.
You've
heard of saving for a rainy day? Well, sometimes things happen
that you might not ever expect. I save a little each month for
emergencies because I don't ever want my kids to be out in the
cold.
My
mom makes me pay for ink cartridges for our printer, because I
really like to print out pictures from the Internet. So, I save
to pay for the ink cartridges (they cost $20 each). I also want
to buy some computer games for my brother for his birthday. I
don't have enough money yet, but I'm saving for them.
I
eventually want to record my own beats at home. So, I'm saving
to buy my own recording equipment. It's not cheap! My uncle also
makes me put away a little money for college, because he says
it's only 3 years away.
Oui,
Paris! A pig like me is meant to travel the world and you can't
do that for free.
One
word: CHEESE! I can't get enough of that stuff.
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.
Consider Alternative Retailers
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.
Make best use of coupons
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
lay-away,
even if you find something
nicer
or
cheaper. — Doesn't
help you build a good credit history
People
often save money in financial companies like banks
& credit
unions.
A bank is a financial company
where people save their money. Banks offer services
such as savings accounts, checking accounts and
CDs
(certificates of deposit). Banks make money by
charging fees for these services. Banks usually
pay slightly higher interest for money stored
in a savings account, because they know that they
will have the money in their possession for a
longer period of time.
A credit union is a financial
company that is owned by its members. Credit unions
offer services such as savings accounts, checking
accounts and CDs.
The members of the credit union decide how much
is charged for each financial service. A member
of a credit union usually lives, works, or worships
in the same community. When you join a credit
union, you become part owner of the credit union.
5
Questions to Ask Before You Open a Savings Account
1
What
is the interest rate for this account? (The higher the interest
rate, the better the return.)
Money
Center 
Smart
Shopping
Write your answers in your Money Notebook.
