Log inSign up for FREE
Library

đź““ 5.1 Why Saving is Important

Last updated 4 months ago
15 questions
1

Intro:
Would you rather...

1

Write an explanation of your selection.

Learn It:

You may hear people say saving is important, but do you really know why? Saving your money has several positive benefits! Review three reasons to save your money in the article below.


1

Think about a big purchase you would like to make. What is your big purchase?

1

How long do you think you will need to save to make that purchase? Why?

1

Based on your answer to #3 & #4 create a mock savings schedule for your big purchase.

1

Why do you think only about 18% of Americans have 6 months of saving kept aside?

Saving doesn’t have to be a challenge. In fact, “paying yourself first” is an easy way to make sure you are saving money! Watch this video to learn more about this saving strategy and answer the questions.
1

In your own words, explain what “paying yourself first” means.

1

Your older sister is planning on saving money by paying her bills, spending money on fun, and then saving whatever is left over. Why is this not the best option for saving her money?

Do It - Create: Your Savings Goal

We all know that saving money is good for us. It’s also important to identify what you are saving for, as your savings goals can motivate you to save! In this activity, you’ll brainstorm and prioritize savings goals for your future.
1

Step 1: Brainstorm goals you would like to save for. Some of the goals may be big, like saving for college, while others might be small, like saving enough to buy a new pair of sunglasses. They can even be something in between, like saving up for a bicycle. Come up with at least 10 reasons for you to save.

1

Step 2: Now, sort your savings goals into the following categories:
  1. Short-term goals: ones you would like to achieve within two to six months
  2. Medium-term goals: ones you would like to achieve from within six months to two years
  3. Long-term goals: ones you would like to achieve three or more years out

Which goal, in each category, would motivate you most to save? Explain why.
1

Short-Term

1

Medium-Term

1

Long-Term

Exit Ticket
1

Explain how paying yourself first can help you achieve your savings goal.

1

Let’s say you get an allowance for doing chores around the house and you’re able to save $100 per month from your allowance. How would you distribute the money between your 3 savings goals above?