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Making choices about what to do with money once it is earned.
Imagine you just earned a shiny $\$5$ bill! Would you buy a yummy ice cream cone right now, or keep the money in a secret jar to buy a giant spaceship toy later?
When you get money from a job or a gift, you have a big choice to make! Spending means using your money right now to buy things you want or need, like a snack or a pencil. Saving means putting your money in a safe place, like a piggy bank or a bank account, to use at a later time. Think of spending as 'Money for Now' and saving as 'Money for Later.' Both are important, but you have to choose how much goes into each pile!
Quick Check
If you put your birthday money under your mattress to buy a bike next year, are you spending or saving?
Answer
You are saving because you are keeping the money to use at a later time.
Why would anyone want to wait to use their money? Because of goals! A goal is something you want to do or have in the future. Some things, like a new video game or a bicycle, cost a lot of money. If you spend all your money on small candies today, you won't have enough for the big things later. Saving helps you reach your big dreams by collecting small amounts of money over time until you have exactly what you need.
1. Sam wants a soccer ball that costs $\$10\ right now.
3. Every week, Sam gets $\$2\ in just 5 weeks!
Quick Check
Why might someone choose to save their money instead of spending it immediately?
Answer
To buy something more expensive or important in the future that they cannot afford right now.
A great way to manage money is the Save, Spend, Give plan. Instead of choosing just one, you can split your money into three jars! - Spend Jar: For small things you want today. - Save Jar: For big goals in the future. - Give Jar: To help people or animals in need. This way, you are taking care of your needs now and your dreams for later!
Imagine you earn $\$6\ in your Spend jar for a pack of stickers.
2. Put $\$3\ in your Give jar to help the local animal shelter.
Total: $\$2 + \$3 + \$1 = \.
Maya wants a robot toy that costs $\$20\ saved already. She earns $\$5\$20 - \$10 = \ more dollars.
2. If she spends $\$5\ each week, she will reach her goal in weeks!
What do we call it when we keep money to use in the future?
If a toy costs $\$15\, what is the best way to get the toy?
You can spend the exact same dollar bill today and also save it for next year.
Review Tomorrow
Tomorrow morning, try to remember the three jars: Spend, Save, and ____. What was the third one for?
Practice Activity
Find three containers at home (like empty jars or boxes). Label them 'Spend,' 'Save,' and 'Give.' The next time you get money, decide how to split it up!