Hard-earned money

Brainstorm and list as many ways as possible to earn money or earn an income. Record your thoughts using a method of your choice.

Now give yourself one minute to brainstorm another list for reasons money is spent. Record your thoughts using a method of your choice.

Which list is longer and easier to add to? Which do you think is easier to do: make money or spend money?

In this learning activity, you will learn about the relationship between earning money, saving money, and spending money.

To save money or spend money?

Let’s revisit the Minds On question again:

Which do you think is easier to do: make money or spend money?

Let’s examine a situation: the cost of living.

For a person living on their own, the cost of living is listed in the following chart:

It takes much longer to earn money than it does to spend it.

Spending some money is going to happen each week for food, shelter, transportation, entertainment, and other needs and wants.

There is no question that people need clean drinking water, food, clothing, and adequate shelter in order to survive. Some adults need a car to be able to get to work or require driving as part of their job, while other adults may take public transportation or bike to work. Some individuals may be able to walk to work and are considered lucky to be able to walk to work.

There are some expenses that are necessary (needs), and some expenses (wants) that are not necessary.

Saving money

People save money for various reasons.

You may have heard of the saying, “saving for a rainy day.” This means to save in case you need some extra money to help you through a challenging time or to manage an unexpected expense.

Financial goal setting

Some people save their money with a plan to spend it in the near or distant future for different reasons. They budget each month and decide, based on what money they are making and what their expenses are, how much they can put away each month.

Stretching your dollar

Saving money means trying not to spend money on immediate wants. Once someone has a savings goal in mind, it can be easier to say “no” to spending on certain wants. It also becomes clearer why it’s worth deferring or holding off on our wants for a period of time — having a direction and goal makes it easier to reach the goal.

Donating

Some people are able to take a small amount of what they earn to donate to charity, such as their religious community, a local food bank, or to an animal rescue organization.

Many non-profit organizations rely on donations. Hospitals like SickKids in Toronto, arts organizations, and public libraries also benefit from donations. Donating a small portion of earnings can help contribute to a stronger and better community. Before donating, it is always a good idea to make sure the organization is legitimate by checking for a charity number and doing some research to make sure the organization is safe.

If a person cannot afford to donate money, they can always find ways to volunteer their time for a meaningful cause instead.

Activity

Explore the following scenario:

Scenario

We know the following facts about Adult A:

• They are 20 years old, studies for college part-time, and work in the day at a company.
• They like to buy a $5 morning coffee on their way to work every day.
• They spend $25 each week on coffee, which equals approximately $100 each month.
• They would also like to own their own condo in the next 10 years.
• They cook on the weekends but get take-out, as they are busy during the weekdays going to class and studying after work.
• They are lucky to live with their parents, who do not charge any rent.
• They pay for their own clothes, pay a tuition fee for part-time studies, pay smartphone bills, and contribute to groceries at home.

1. If Adult A stopped buying their $5 morning coffee and made their coffee at home before they headed out, how much would they be saving each week? Each month? In one year?
2. What else could Adult A do to curb or reduce their spending so they have more money to save?

Record your ideas in a format of your choice. What was the most interesting thing you explored?

Create a savings scenario

Money can be used for spending, saving, or giving. It can be spent on things that are needs or wants. Saving and spending habits depend on people’s income, values, financial responsibilities (like having children, pets or not, paying tuition fees for schooling after high school), and family circumstances.

Create a scenario about someone who has expenses, earns their own income (such as working for 40 hours a week at $14 per hour, or paid an annual salary of $60,000), and has a savings plan. What might they be saving for? What might they spend their money on?

Be creative, and record your ideas using whatever method you would like.

Reflection

As you read through these descriptions, which sentence best describes how you are feeling about your understanding of this learning activity? Press the button that is beside this sentence.

Now, record your ideas using a voice recorder, speech-to-text, or writing tool.