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Saving

3.2 Saving Basics

Student Activity Packet

Name

Activity

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Response

1

/ The Truth About Millionaires
Note: You may need to open this in Internet Explorer instead of Chrome.Take this brief quiz. As you play, write down habits of millionaires that relate to saving.
How has this quiz altered or supported your views on saving?
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Approximate time: 6 mins

2

/ What is Wealth?
Watch this brief video (1:42) on wealth.
Your friends and you notice a classmate who always has brand new clothes, shoes, and electronics.
  1. What would you need to know in order to tell if this classmate’s family is actually wealthy?
  2. How are wealth and savings related?
As you move forward with the rest of the lesson, keep in mind how improving your saving habits impacts your overall wealth.
/ Approximate time: 5 mins

3

/ Learn the Most Important Reasons to Save Money
Read this article that gives 7 reasons for why you should consider saving money.
  1. Which of these types of saving are you already doing?
  2. Which of these 7 reasons to save is NOT really an example of saving, but rather of investing?

/ Approximate time: 8 mins

4

/ How Much Should I Save? Kal Penn Explains
Watch this video (3:22) on saving. Then, answer:
  1. How much does Kal Penn recommend you save?
  2. Why does it make sense to start investing right now?
  3. The previous article and this video have three points of overlap -- retirement, emergency fund, and education. Why do you think it’s SO important to save in these 3 categories?

/ Approximate time: 5 mins

5

/ 5 Simple Saving Tricks
Read this article.
●Which of the 5 tricks are you already doing?
●Which of the 5 tricks would be MOST difficult for you to implement? Why?
/ Approximate time: 10 mins

6

/ Cash Calculator -- 4 Banks for Your Bucks!
Use the calculator provided to fill in the 2 charts at right.
/ Approximate time: 7 mins
If I earn $100 per week and allocate my earnings according to the percentages below, how much will I have in each category after one year?
Save / Spend / Invest / Give
20% / 65% / 10% / 5%
Fill in the blanks:
If I earn $150 per week and allocate my earnings according to the percentages below, how much will I have in each category after one year? You can use the same percentages as what is listed about or you can use your own percentages.
Save / Spend / Invest / Give
______% / ______% / ______% / ______%
Based on what you know about saving and investing, when you look at the 1 year totals for each “jar,” which one is most likely NOT accurate? Why?

7

/ Don’t Eat the Marshmallow
Watch this video (5:58) about a famous psychology study often referred to as the "Marshmallows Study".
●When you were four, would you have eaten the marshmallow?
●Reflect on a moment when you were very tempted to spend money on something. Did you end up spending the money?
●Why is it sometimes SO hard to resist?
/ Approximate time: 8 mins

8

/ Key Takeaways
●Saving is done for the short-term and usually doesn’t earn substantial interest. Investing is done for the long-term, is riskier, but can grow faster and may outpace inflation.
●Save for emergencies, expensive items you need/want to purchase, your education, and retirement.
●Aim to save 20% of your income (or more)!

9

/ GLOSSARY | Saving
If there is still time, review these terms associated with types of credit. Scroll down to read the definitions. Then, play the Matching game four times and record your fastest time. Good luck!
10 Feedback: Which part of the lesson do you feel was:
Most valuable
Most interesting
Least valuable
Least interesting
Other comments?

1