Spend vs. Save

ObjectiveTo help your children decide when they should spend their money and when they should save.
Description Spend or Save

Teach your kids to find the balance between spending and saving during a trip to a dollar store.

Steps:

1. Go to a dollar store with your children and give them a small amount of money ($2-$5).

2. Tell your children they can save the money, take it home and put it in their piggy bank (or deposit into their Bankaroo account), or they can spend the money on something in the store.

3. If your kids choose to save their money, go home and have them add up the total amount of money that they have saved. Then ask them the following:

  • What they want to save for?
  • Why they decided to save their money.
  • Why they think saving is important.
  • Talk about saving money and what they could do with their savings.

 

4. If they decide to spend their money have them estimate the taxes on the item and then mentally (or if you have a piece of paper they could write it down) subtract the cost of the item from the amount of money that they have. Ask your children the following:

  • Do they have enough to purchase what they want?
  • Will there be any change?
  • What would they like to do with the change if there is some?
  • Talk about why they decided to spend their money instead of save it. Are they happy with their decision?

 

Your goal is to help your child achieve a balance between saving and spending their money. If your child has the tendency to save, then encourage him/her to set a savings goal and spend the money at an appropriate time. If your child has the tendency to spend all his/her money, then encourage him/her to save up money occasionally and watch to make sure that your child is not spending beyond his/her means.

 

Complete When

Mark this activity as complete when your child demonstrates a good understanding of the balance between spending and saving.

Track your progress and earn badges!

This activity is included in the following:

Attachments
Prerequisites Ed's Bank Game
Average RatingNo one has rated this activity yet!
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Age Range 5    6    7    8   
Activity Type Field Trip
Tags Logical-Mathematical Intelligence  Problem Solving  Money  Saving 
CreatedCindyCindy
Last ModifiedRobRob

References

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