Money My Way - Saving
Saving money can be really tough, but it's worth it if you're looking to buy something a little bit more expensive than usual, or if you're finding yourself short of cash from month to month.
Task 1: Why Save?
The first thing to do when you're thinking about saving is to motivate yourself! Make a list:
- Why is it important to save?
- What types of things might you need to save money for?
- What types of things could you cut back on if you needed to save money?
Task 2: Andy's savings
Meet Andy. Andy works in an office next to a cafe and spends £2.50 on a sandwich for lunch every day. How much does Andy spend:
- A week?
- A month?
- A year?
After you've worked these things out for Andy, try it for yourself. Think about something you spend money on regularly that you could cut back on - this could be something like lunch, bus fare, snacks or cigarettes.
When you've chosen something, work out how much you spend on it per week, month and year.
Task 3: More about Andy
Let's go back to Andy. If he brought his lunch from home every day, Andy would spend an average of 50p a day on lunch rather than £2.50. If Andy started bringing his lunch in from home,
- How much would he save every day?
- How much would he save every week?
- How much would he save a year?
Task 4: How much should Andy save?
This savings calculator from the Money Advice Service will help you to see how much time you'll need to save the amount you want to, as well as how regularly you'll have to put money aside.
Use the Savings Calculator to work out: If Andy used the amount he saved on sandwiches each months to start saving towards a car that cos £1,000, how long would it take him to save before he could buy the car?
A great way to save some extra money is by cutting costs on your energy bills where you can. Here's some handy information from Citizens' Advice and The Money Advice Service.
Another great way to save is by comparing the prices of things before you buy them. MoneySuperMarket is designed to do just that. You can compare prices on insurance, travel, energy, broadband and much more, so you can see what all of the options are before you make a commitment.
Session Plan For Tutors
If you're a tutor, you might find it useful to use the session plan below to support this topic.