Saving and Setting Goals
Learn why saving is important, how to set savings goals, and how to make a plan to reach them.
Why Save Money?
Saving money means keeping some of your money instead of spending it all. There are great reasons to save!
Buy bigger things
Save up for something special you really want
Be prepared
Have money ready for unexpected things
Feel good
It feels great to reach a savings goal!
Short-term vs Long-term Goals
A savings goal is something you want to save money for. Goals can be short or long.
Short-term Goals
Takes a few days or weeks to save for
- ● New book ($15) — 3 weeks at $5/week
- ● Movie ticket ($12) — about 2 weeks
- ● Art supplies ($8) — less than 2 weeks
Long-term Goals
Takes months to save for
- ● Bicycle ($200) — 40 weeks at $5/week
- ● Game console ($400) — a long time!
- ● Holiday spending money ($100) — 20 weeks
Savings Tracker
Let's see how saving $5 per week adds up! Goal: save $50 for a new game.
At $5 per week, it takes 10 weeks to save $50.
Opportunity Cost
When you choose to buy one thing, you give up the chance to buy something else. This is called opportunity cost.
Example: You have $10 and can choose between:
Option A
Buy a book for $10
Option B
Buy a small toy for $10
If you buy the book, the opportunity cost is the toy you missed out on. If you buy the toy, you miss out on the book!
Key Vocabulary
Saving
Keeping money to use later instead of spending it now.
Goal
Something you are working towards. A savings goal is what you want to buy.
Opportunity Cost
What you give up when you choose one thing over another.
Savings Plan
A plan for how much to save each week to reach your goal.
Worked Examples
Lily gets $5 pocket money per week. She wants to buy a game that costs $30. How many weeks to save?
Step 1: Cost of game = $30
Step 2: Weekly savings = $5
Answer: $30 / $5 = 6 weeks
Jake saves $3 per week. After 4 weeks, how much has he saved?
Step 1: Weekly savings = $3
Step 2: Number of weeks = 4
Answer: $3 x 4 = $12
Mia has $15 saved. She wants a $40 skateboard. She saves $5/week. How many more weeks?
Step 1: How much more does she need? $40 - $15 = $25
Step 2: She saves $5 per week
Answer: $25 / $5 = 5 more weeks
Knowledge Check
Select the correct answer for each question. Click "Check Answer" to see if you are right.
Question 1
Ben saves $4 per week. How much will he have after 5 weeks?
Question 2
A toy costs $35. You save $5 each week. How many weeks will it take?
Question 3
Which is a long-term savings goal?
Question 4
Sara has saved $20. She wants something that costs $50. She saves $10/week. How many more weeks?
Question 5
You choose to buy a book instead of a toy. What is the opportunity cost?
Key Concepts Summary
- ●Saving means keeping money to use later.
- ●Short-term goals take days or weeks. Long-term goals take months.
- ●Weeks to save = Total cost / amount saved per week.
- ●Opportunity cost is what you give up when you choose one thing over another.
- ●A savings plan helps you reach your goals step by step.