Chapter 3: Smart Saving – Pay Yourself First
LESSON GOAL
BY THE END OF THIS LESSON,
you’ll understand the difference between short-term and long-term savings. You’ll learn how to set savings goals that match your timeline — whether you want something next week or in a few years!
💬 let’s break it down
Not all savings are the same. Some things you want to buy soon, and others take more time and planning.
That’s where these two types of saving come in:
⏳ Short-Term Savings – Money you’re saving for something that’s coming up soon. This might be a toy, a birthday gift for someone, or a fun day out. You’ll probably use this money in the next few days, weeks, or months.
⏰ Long-Term Savings – Money you’re saving for something BIGGER or farther away. Like a bike, a gaming console, a school trip, or even college or a business one day. This kind of saving takes longer — but the reward is usually bigger too!
Both kinds of saving are important. If you only think short-term, you might never reach your big dreams. If you only think long-term, you might miss out on enjoying life right now.
Smart savers do both — they enjoy the “now” and prepare for the “later.”
🧠 ANALOGY: Saving is Like Planning a Meal and a Feast
Short-term savings are like planning a snack — it’s quick, easy, and you’ll enjoy it soon 🍿
Long-term savings are like planning a big feast — it takes more time, more ingredients, and more patience. But when it’s done, it’s something special you’ll always remember 🍽️
If you only snack, you’ll never get full. If you only wait for feasts, you’ll get hungry along the way. That’s why you need both!
🤔 critical thinking questions
What’s something you’re saving for that’s short-term? What about long-term?
Why do you think people give up on long-term saving?
How does it feel to wait for something big versus getting something right away?
Do you think it’s better to save for fun or save for something important — or both?
✍️ journal entry: “My Now and Later Goals”
Make a list of two things you want to save for:
One short-term goal (under 3 months)
One long-term goal (3+ months or more)
Write how much each one costs and how much you’ve saved so far.
Which one feels easier? Which one feels more exciting?
Optional: Draw a timeline showing how long you think each one will take.
👨👩👧👦 ACTIVITY WITH FAMILY OR FRIENDS: Savings Show and Tell
What You’ll Need:
Paper
Markers or crayons
A short family talk
What to Do:
Everyone writes or draws one short-term and one long-term savings goal.
Take turns sharing what you picked and why.
Ask your parent or sibling if they’ve ever saved for something big — and how they did it.
🎯 What This Teaches: Everyone saves for different reasons, and hearing other people’s goals can inspire your own.
💵 real-life practice: Make a 2-Goal Tracker
This week, choose ONE short-term and ONE long-term savings goal.
Make a simple chart or coloring page for each goal.
Every time you add money, color in a section or write your new total.
This helps you see your progress and stay motivated to keep going — even when it takes time.
🌟 Bonus: Ask a parent if they’ll match your savings for one goal if you stick with it!
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