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Spending, Saving and Setting Goals

Level I

Thank you so much for inviting us to share with you today. We’re excited to talk about something that affects every single one of us - money. Specifically, we’ll be exploring spending, saving, and setting goals.

We’re going to look at how you get money, how you choose to spend it, how you can save it, and how the decisions you make now can help you in the future.

Managing money is a skill that everyone needs. It doesn’t matter how old you are - learning about money early give you a huge advantage. The sooner you understand how money works, the more confident you’ll be when making important financial decisions.

From as far back as you can remember, you’ve probably known something about money. Maybe you’ve received cash for a birthday gift, earned allowance, or watched someone use a debit or credit card to buy something.

Money is part of everyday life. We use it to buy things we need, things we want, and sometimes things we didn’t plan for. Because money plays such a big role in our lives, it’s important to understand how to use it wisely.

Today’s discussion is all about giving you the information and tools you need to make smart choices - choices that can help you reach your goals, stay out of financial stress, and build good habits for the future.

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They are fun to do

They are a great way to relax or spend time with friends

They all require money.

Needs and Wants

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Needs and Wants

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A need is something that is necessary to survive with food, water, clothing and shelter. It is something we need to have to function.

Needs and Wants

A want is something that an individual desires, but would be able to live or function without.

Let’s take a closer look at needs and wants.

A need is something that is necessary for us to survive - like food, water, clothing, and shelter. Needs are things we must have to stay healthy, safe, and able to function every day.

A want is something we might really like or enjoy, but we could still live without it. Wants are the extra things - the fun things - that make life exciting, but they aren’t required for survival.

In school, we use lots of things that helps us learn. As you sit here, everyone has clothes, you’re in a school with tables, chairs, computers, paper towels, pencils - and throughout the day you’ll eat snacks or lunch. All of these things cost money. Some of these items are necessities - things we should have because they help us learn and stay safe. Other things are extras - things that are nice to have, but not required.

Understanding the difference between needs and wants helps us make smart choices with our money. When we know what we truly need, we can save and plan for the things we want.

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Let’s see how good you are at identifying needs and wants!

Needs and Wants

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Needs and Wants

Winter Coat

vs.

New Video Games

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Needs and Wants

Trampoline

vs.

Refrigerator

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Needs and Wants

Gas for the car

vs.

EXTRA Snack Food

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This could be tricky:

Cell Phone

Some items are clear as to whether or not they are a WANT or a NEED, other items may be a need for some people but not for others.

We often see people make decisions about their money based on what THEY consider their own wants and needs.

Needs and Wants

Let’s take a closer look at a specific example, a cell phone, because it shows how tricky money decisions can be.

Some items are clearly a need - like food, shelter, or basic clothing. Other items are clearly a want - things we enjoy but can live without. But some items fall in the middle. A cell phone might be a want for one person, but a need for someone else. For example, if someone needs a phone for safety, work, or communication with family or friends, it might feel like a need. But if someone mainly uses it for games, social media, or entertainment, it might be more of a want. This is why money decisions can be so personal. People often make choices based on what they consider their own wants and needs. Understanding your own priorities - and being honest about them - helps you make smarter decisions with your money.

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Money on the Move

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Job

Allowance

Business

Birthday

Wallet

Bank or credit union

Food

Travel

Movies

Concerts

Money on the Move

Under your bed

Piggy bank

There are lots of different ways students your age might earn money. You might get money as a birthday gift or on special occasions. Some of you might get allowance for helping around the house. Maybe you earn money by babysitting, doing odd jobs, or helping neighbours. And some of you might even have your own small business - like selling crafts, shovelling snow, or walking dog. These are all ways students your age can earn money.

Once you have money, you need a safe place to keep it and save it. Some people save money under their bed, in a piggy bank, or in their wallet. But most commonly, people save their money in a bank or credit union, where it’s safe and can even grow over time.

Then you get to spend your money! Usually, students your age can spend their money on things they want because parents or guardians usually buy the things you need. You might spend your money on food or treats, concerts, movies, toys, games, or travel. Or maybe there’s something else you like to buy. Would anyone like to share?

Now that we know how we get money, save money, and spend money, let’s start thinking about the things that influence us to spend. There are lots of reasons we choose to buy something - and we’re going to explore those together.

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Businesses People

People Banks

Businesses Banks

Money on the Move

But first, let’s take a look at where our money goes when we spend it.

Your money doesn’t disappear when you spend it or put it in the bank. When you spend money at a store, that money becomes part of the store’s money circle. The business might use it to buy more supplies, pay their workers, or keep the business running.

If you pay with a credit card, some of that money goes to the credit card company. So even then, the money is still moving - just to a different place.

Money is always changing hands, but it stays in the community or moves to other businesses. It doesn’t vanish.

And when you put money in the bank, it doesn’t disappear either. It stays safe in your account so it won’t be stolen or lost. Your money stays there until you need it. When you’re ready to use it, you make a withdrawal - that just means taking your money back out.

So whether your spend it or save it, your money is always somewhere, helping people, businesses, and communities keep moving.

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When we deposit money into a bank, the bank will pay you to use your money so they can lend it to other people and businesses.

Interest is the money paid for the use of someone else’s money.

Money on the Move

You may have heard people talking on the news or at home about interest rates. It can sound confusing, but the idea is actually pretty simple. When interest rates are higher, it means people have to pay more money back when they borrow money - like for a car, a house, or even a loan from the bank. When we deposit money into a bank, the bank doesn’t just let it sit there. They use that money to lend to other people and businesses. Because the bank is using your money, they pay you a little extra for letting them borrow it. The extra amount is called interest.

Interest is the money paid for the use of someone else’s money. If you borrow money, you pay interest. If you save money in the bank, the bank pays you interest.

Interest helps us understand how borrowing and saving work. It’s one of the reasons people think carefully before taking out loans - and why saving money can help it grow over time.

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Things that can influence our spending decisions:

Spending Influences

Do you know what it means when we say people can be influenced to spend money? That’s exactly what advertisers try to do - they want to convince us to buy a product for a certain reason. But advertising isn’t the only influence. There are many other factors that can affect our decisions, even when we don’t realize it.

Take a look at the factors on the slide, can you think of examples of how each one might influence someone to spend money?

Price: If something is cheaper than usual, people might feel like they’re getting a deal - even if they didn’t plan to buy it.

Convenience: People often choose what’s easiest. If a store is close by or a product is available online with fast shipping, that convenience can influence a purchase.

Peers/Friends: If your friends have something, you might go out and buy it as well because you like what they have.

Celebrity Status: When a celebrity uses or promotes a product, people may think it’s cool, trustworthy, or high-quality, even without knowing much about it.

Brand Loyalty: Some people stick with a brand they know, even if another option is cheaper or better. Familiarity can strongly influence spending.

Salesperson: A friendly or persuasive salesperson can make a product seem more appealing, or make you feel confident about buying it.

Availability: If something is hard to find or sells out quickly, people may want it more - it feels special or exclusive.

All of these factors can influence how we spend our money. The important thing is to recognize them, so you can make decisions based on what you truly need or want - not just what influences you.

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Spending Influences

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Peers

Brand Loyalty

Price

Convenience

Spending Influences

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Classroom Question

Over the next 2 minutes discuss as a class

Why do you think it is important to build your savings?

Teachers please put your students answers in the chat.

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Money Management

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Money Management

Before we even talk about budgeting money, I want you to think about how you budget your time, because believe it or not, you already do it - every single day.

You have to fit a lot into your day, so how do you make it all happen? You budget your time.

Before school, you have to wake up, get ready, pack your lunch, eat breakfast, and get out the door. That’s time budgeting.

During school, your teachers plan your day so you can get everything done - classes, assignments, breaks, and activities. That’s time budgeting.

After school, you might have sports, extracurriculars, friends to hang out with, family responsibilities, homework, and then you still need enough sleep for the next day.

Your whole day is basically planned out - sometimes without you even thinking about it. You’re constantly making choices about what to do first, what can wait, and what’s most important. Budgeting money works the same way. You plan ahead, you prioritize, and you make sure you have enough for the things that matter.

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A Budget is a plan for managing your money. It helps you determine what you will spend your money on and how much you will save for a future goal or purchase.

Money Management

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Things you will have to budget for include:

Food
Games/Prizes
Cake
Decorations

Let’s Plan a Birthday Party!

For this example we will host a birthday party:

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You are asked to plan a surprise birthday party for your best friend and are given a budget of $200.00.

First up, how many people will you invite?

Your costs will be higher the more people you invite.

Let’s Plan a Birthday Party!

You’re [;planning a surprise birthday party for your best friend, and you’ve been given a budget of $200. The very first question you need to answer is: How many people will you invite? This is a super important place to start because the number of guests affects everything else in your budget.

The more people you invite, the higher your costs will be. More people means more food, more drinks, more prizes, and maybe even more decorations. If you invite fewer people, your costs will be lower and you’ll have more money left for games, a bigger cake maybe, or special decorations.

Everything else you plan depends on how many people are coming. You can’t decide how much food you need, how many prizes to buy, or even how big the cake should be until you know your guest list. So before you spend a single dollar, you choose your number of guests - and that helps you plan the rest of your party without going over your $200 budget.

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You can either:

Order pizza and drinks for everyone. Multiply your number of guests by 5.

Eat out at a restaurant. Multiply your number of guests by 15.

Let’s Plan a Birthday Party!

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You can either:

Play games at home and watch a movie. Add $20 for prizes and snacks.

Go out to an outside facility, (arcade, gym, paintball, paint class,etc.) - add $5 per person plus $40 for the rental.

Let’s Plan a Birthday Party!

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Homemade: $5.00 serves 8-10

Store Bought: $15.00 serves 6 - 8

Store Bought: $25.00 serves 8 - 12

Store Bought: $35.00 serves 12 -18

Let’s Plan a Birthday Party!

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Make your own, use decorations you already have, or ask friends if they have some things you could borrow - $0

Store bought decorations - $10.00

Bag of balloons and blow up your own - $3.00

Store filled balloons and speciality balloons - $10.00 per balloon

Let’s Plan a Birthday Party!

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If yes - Congratulations!🙂You have stayed within your budget and planned a wonderful surprise party for your friend.

If no -🙁Planning can be difficult especially when you are trying to stay within a budget, go back to your options and see what changes you could make to reduce the overall costs to bring your total to $200.00 or less. Turn this sheet over and revise your budget to meet your $200.00 limit.

Let’s Plan a Birthday Party!

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Classroom Question

Over the next 2 minutes discuss as a class

What would you do with your money if you had some leftover after planning the party?

Teachers please put your students answers in the chat.

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It is important to know the difference between our wants and needs.
If you don’t manage your money, it will slip through your fingers.
There are many things that can influence us to spend money.
Money is a limited resource, our wants are not.
A budget is a tool for managing money
By using a budget we can make a plan to reach our financial goals

Review

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Thank you for listening!

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