Key Ideas of Financial Literacy
If you had 5 dollars, would you spend it all on candy today, or save some for a toy next month? That one little choice is exactly what grown-ups think about with their money every single day!
What You'll Learn
- The difference between 'want' and 'need' - What it means to save money instead of spending it right away - Why people earn money by working - How a piggy bank helps you reach a savings goal
Needs vs. Wants
A need is something you must have to stay healthy and safe, like food, water, and a place to sleep. A want is something fun to have but you could live without it, like a video game or a new toy. Grown-ups have to pay for needs first, like groceries and rent, before they spend money on wants.
Earning: Where Money Comes From
Money doesn't just appear -- most grown-ups earn it by working a job, like teaching, building houses, or driving a bus. Some kids earn money too, by doing extra chores or helping a neighbor. Earning money means trading your time and effort for it.
Saving: Waiting for Something Bigger
Saving means keeping some money instead of spending all of it right away. If a toy costs 10 dollars and you only have 3 dollars, you can save a little bit each week until you have enough. This takes patience, but it means you get exactly what you really want.
Get a clear jar and add a coin every time you do a helpful chore. Watching the coins pile up makes saving feel like a fun game!
Spending Wisely
Spending is using your money to buy something. Smart spending means thinking before you buy: Do I need this? Do I want something else more? Sometimes it's smarter to wait and save for a bigger want instead of spending on lots of little things.
Sort each item into Need or Want.
Terms
Definitions
Drag terms onto their definitions, or click a term then click a definition to match.
Which of these is a NEED, not a want?
What does it mean to 'save' money?
Make a Savings Goal Chart
Pick something you'd like to save up for and draw a picture of it at the top of a paper. Draw 5 empty boxes below it. Each time you save a little money (or do a helpful chore), color in one box. When all 5 boxes are colored, celebrate reaching your goal with a family member!
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