Saving and Savings Goals

Let’s explore a little economics.

Today we are going to learn about income, saving, spending, and savings goals. You may want to have a piece of plain paper, some markers or crayons, and some tape for this lesson.

What would you do with $2 you earned helping your neighbors clean up their yard? You could spend it, or you could save it—right?

The payment people earn for work they do, is called income. Is there work you do around your house?

Maybe you set the table, help with the dishes, dust the furniture, walk the dog, or help with yard work. You may do that because it is work you do as part of your family. Or, maybe you are paid—you earn income for some of the work you do.

Sometimes you might receive money as income—payment for work. But sometimes, you probably receive money as a gift. Have you ever received money as a gift? Maybe for a birthday or another special day in your life?

What do you do with the income you earn or the money you receive as a gift? There are really two things that you can do with your income. You can save it, or you can spend it. Spending means using some income to buy things now. You probably know something about spending if you buy things! Saving means keeping some income to buy things in the future.

It is a really good idea to save for the future. A savings goal is something that you are saving to have in the future.

People have lots of savings goals—they save for emergencies like fixing a broken car, or for big items, like a new refrigerator.

People also save for their kids to go to college, for vacations, for when they retire, and for special things that they want.

It isn’t easy to save—there are lots of things that we want to spend money on right now. It helps to remind yourself of your savings goal.

One thing you can do is draw a picture of your savings goal and place it where you can see it—to remind you why you are keeping your money for the future—and not spending it today.

Here’s a picture of my savings goal. I have it hanging near my computer to remind me that I am saving—and to encourage me NOT to spend now. Here are some examples of other kids’ savings goals. Do you have a savings goal?

Let’s use your paper and your markers to draw a picture of your savings goal.

Hang it somewhere—maybe near your piggy bank—to encourage you to save, NOT spend, so that you meet your goal.

Here's a little song to help you remember about saving. We’ll show you the words so you can sing along. Just follow the bouncing ball.

If you spend all of your income,
Spend it every day
If you’re tempted by the small stuff
Or don’t keep your money safe.
You’ll end up with stuff around you,
Lots and lots of stuff today.
If you spend all of your money,
You won’t reach your goal.

Chorus: Save some money now! Save some money now!
Save some money now, now, now, now, now!
Save some money now! Save some money now!
Save some money now, now, now!

If you save some of your money,
Save some every day.
If you save some of your money,
You can reach your goal that way.
Don’t be tempted by the small stuff,
And keep your money safe.
If you save some of your money,
You can reach your goal.

Chorus: Save some money now! Save some money now!
Save some money now, now, now, now, now! Save some money now!
Save some money now! Save some money now, now, now!