2.10BM Strategies to Save

Instructions

ACTIVITY: CREATE: Your Savings Goals 📷10 min

CREATE: Your Savings Goals

We all know that saving money is good for us, but it can be difficult to save regularly. One of the most effective ways to help you save is to set savings goals for yourself and identify ways to keep yourself accountable. In this activity, you’ll identify what your savings goals are, calculate how much you need to save, and write a letter to your future self to help you reach your goals.
Part I: Identify Your Savings Goals
Using post-it notes, small pieces of paper, or a piece of scrap paper, brainstorm specific savings goals you would like to meet. These goals can vary from small (saving for a new pair of sunglasses) to big (saving for college). Aim to come up with at least 15-20 ideas.
Now sort your ideas into three piles:
Short-term goals: goals you would like to achieve within two months

Medium-term goals: goals you would like to achieve from within two months to three years

Long-term goals: goals you would like to achieve three or more years out
Fill out the table In your  Notebook  using the piles you created.

1

3

1

Let’s say you have a part-time job and you’re able to save $100 per month from your paychecks. How would you distribute the money between your 3 savings goals above? Explain your reasoning.

VIDEO: How Much Should I Save? 📷7 min
After you establish your savings goals, it’s time to start saving!  What’s a reasonable amount to save from your paycheck? Watch this video on general guidelines for how much to save. Then,  answer the questions.

1

How much does the video recommend you save?_______ % of your income

3

What categories encompass the portion of your paycheck that is designated for saving?_______ _______ _______ 

1

Why does it make sense to start saving or investing right now?_______ 

INFOGRAPHIC: 50/30/20 Infographic
ARTICLE: Your Guide To The 50/30/20 Budgeting Rule  📷11 min
The 50/30/20 budgeting rule is a well known rule of thumb and considered easy to follow. Use the infographic and article to answer the questions.

1

True or False: When calculating the percentages for each budget category, you should use your pre-tax income

6

1

EDPUZZLE: Pay Yourself First 📷7 min
Automating your saving can make it even easier for you to save! Watch this video and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.

NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in the lesson here.

1

Why might some people still prefer manually saving their money (e.g. manually transfer or deposit money into their savings account)?

VIDEO: 3 Things You Need to Know about an Emergency Fund 📷6 min
Another core saving strategy is to build an emergency fund for yourself. Watch this video to learn how much you should save for your emergency fund and when to use it. Then answer the questions.

1

Why do you think it is recommended that you save 3-6 months of expenses in your emergency fund?

1

Why might it be better to keep your emergency fund money in a separate account?

1

Explain why you made your choice in #16:

1

CTIVITY: CREATE: Your Savings Goals 📷30 min
Now that you’ve learned about different strategies to save, we can look back at your Savings goals from the Intro.  Follow the directions on the worksheet to complete Part II of this activity.

Part II: Calculate How Much You Need to Save
Now that you’ve identified what your savings goals are, it’s important to think about how much you would need to save on a regular basis so that you can reach those goals! Read through the following example on how Sanjana calculates how much she would need to save to buy a new computer. Then, answer the questions that follow.

1

Now it’s your turn. Pick either your medium- or long-term savings goal from Question 1 (or in your book)._______ 

5

Conduct research online to figure out a rough estimate of how much you would need to save to reach your goal. Write the figure below._______ 
How many months or years away would you like to achieve your goal? Choose a reasonable time frame._______ 
Now, do the math! Calculate how much per month, _______ week, _______ and day _______ you'll need to save to reach your goal.

0

1

https://edpuzzle.com/media/5e780cb45027033f274201f4

Rule of 72

1

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
$100
$200
$500
$1,000

1

What is a major benefit of the Pay Yourself First strategy?
It helps you budget all of your income for the month
It encourages you to prioritize saving money
It is a good way to build credit
It generates additional income to cover essential expenses

1

How much money should you try to save in your emergency fund?
3-6 days worth of expenses
3-6 weeks worth of expenses
3-6 months worth of expenses
3-6 years worth of expenses

2.10BM Strategies to Save

Let’s say you have a part-time job and you’re able to save $100 per month from your paychecks. How would you distribute the money between your 3 savings goals above? Explain your reasoning.

VIDEO: How Much Should I Save? 📷7 min

INFOGRAPHIC: 50/30/20 Infographic

ARTICLE: Your Guide To The 50/30/20 Budgeting Rule 📷11 min

True or False: When calculating the percentages for each budget category, you should use your pre-tax income

EDPUZZLE: Pay Yourself First 📷7 min

NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in the lesson here.

Why might some people still prefer manually saving their money (e.g. manually transfer or deposit money into their savings account)?

VIDEO: 3 Things You Need to Know about an Emergency Fund 📷6 min

Why do you think it is recommended that you save 3-6 months of expenses in your emergency fund?

Why might it be better to keep your emergency fund money in a separate account?

Explain why you made your choice in #16:

CTIVITY: CREATE: Your Savings Goals 📷30 min

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?$100$200$500$1,000

What is a major benefit of the Pay Yourself First strategy?It helps you budget all of your income for the monthIt encourages you to prioritize saving moneyIt is a good way to build creditIt generates additional income to cover essential expenses

How much money should you try to save in your emergency fund?3-6 days worth of expenses3-6 weeks worth of expenses3-6 months worth of expenses3-6 years worth of expenses

If absent, make up the list here and type in your answers.

Let’s say you have a part-time job and you’re able to save $100 per month from your paychecks. How would you distribute the money between your 3 savings goals above? Explain your reasoning.

VIDEO: How Much Should I Save? 📷7 min

INFOGRAPHIC: 50/30/20 Infographic

ARTICLE: Your Guide To The 50/30/20 Budgeting Rule 📷11 min

True or False: When calculating the percentages for each budget category, you should use your pre-tax income

When might the 50/30/20 rule not be the best saving strategy to use?

EDPUZZLE: Pay Yourself First 📷7 min

NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in the lesson here.

What does it mean to "pay yourself first"?Deposit money into your savings account before spending on anything else.Purchase an item you want before something you need.Pay all of your mandatory expenses before paying for optional expenses.Obtain an additional job to supplement your income.

Why might some people still prefer manually saving their money (e.g. manually transfer or deposit money into their savings account)?

VIDEO: 3 Things You Need to Know about an Emergency Fund 📷6 min

Why do you think it is recommended that you save 3-6 months of expenses in your emergency fund?

Why might it be better to keep your emergency fund money in a separate account?

Which of these is the best reason to tap into your emergency fund?:

Explain why you made your choice in #16:

You want to start building an emergency fund. What is one challenge you anticipate that could get in the way? What is a possible solution?

CTIVITY: CREATE: Your Savings Goals 📷30 min

Why is it helpful to break down the total amount you would need to save on a monthly, weekly, or daily basis?

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?$100$200$500$1,000

What is a major benefit of the Pay Yourself First strategy?It helps you budget all of your income for the monthIt encourages you to prioritize saving moneyIt is a good way to build creditIt generates additional income to cover essential expenses

How much money should you try to save in your emergency fund?3-6 days worth of expenses3-6 weeks worth of expenses3-6 months worth of expenses3-6 years worth of expenses

If absent, make up the list here and type in your answers.

When might the 50/30/20 rule not be the best saving strategy to use?

What does it mean to "pay yourself first"?Deposit money into your savings account before spending on anything else.Purchase an item you want before something you need.Pay all of your mandatory expenses before paying for optional expenses.Obtain an additional job to supplement your income.

Which of these is the best reason to tap into your emergency fund?:

You want to start building an emergency fund. What is one challenge you anticipate that could get in the way? What is a possible solution?

Why is it helpful to break down the total amount you would need to save on a monthly, weekly, or daily basis?

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
$100
$200
$500
$1,000

What is a major benefit of the Pay Yourself First strategy?
It helps you budget all of your income for the month
It encourages you to prioritize saving money
It is a good way to build credit
It generates additional income to cover essential expenses

How much money should you try to save in your emergency fund?
3-6 days worth of expenses
3-6 weeks worth of expenses
3-6 months worth of expenses
3-6 years worth of expenses

What does it mean to "pay yourself first"?
Deposit money into your savings account before spending on anything else.
Purchase an item you want before something you need.
Pay all of your mandatory expenses before paying for optional expenses.
Obtain an additional job to supplement your income.

Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
$100
$200
$500
$1,000

What is a major benefit of the Pay Yourself First strategy?
It helps you budget all of your income for the month
It encourages you to prioritize saving money
It is a good way to build credit
It generates additional income to cover essential expenses

How much money should you try to save in your emergency fund?
3-6 days worth of expenses
3-6 weeks worth of expenses
3-6 months worth of expenses
3-6 years worth of expenses

What does it mean to "pay yourself first"?
Deposit money into your savings account before spending on anything else.
Purchase an item you want before something you need.
Pay all of your mandatory expenses before paying for optional expenses.
Obtain an additional job to supplement your income.