Spriha's Journey Towards Financial Literacy
Chapter 1: Money Matters
Key topics in this chapter
1.1 What is Money? Brief explanation of coins, bills, and their values.
1.2 Earning Money: Discuss how people can earn money through jobs or tasks.
1.3 Saving Money: Introduce the concept of saving and why it’s important.
1.4 Spending Money: Explain the difference between needs and wants.
1.5 Budgeting: Simple budgeting examples for children.
1.6 Exercise: Help your child set up a savings jar
Introduction
Let me tell you the story of a young girl named Spriha. She is a bright and curious girl, always eager to learn new things. One sunny morning, she woke up with a smile on her face because it is a special day – allowance day.
Spriha’s parents believed in teaching her about money from a young age. Every week, she receives her allowance, and this iss the day she learns valuable lessons about money.
What is Money?
Money is something we use to buy things we need and want. It comes in different forms: coins and paper notes. Each coin and note has a different value. For instance, a coin can be worth one rupee or five rupees, and a note can be worth ten, twenty, or hundred rupees.
Imagine money is like a special tool that helps us get what we want and need. Spriha loved to count her coins and notes, and she learned to recognize the different values.
Earning Money
Earning money is the first step in managing it. People earn money by doing various jobs or tasks. For Spriha, her chores at home, like making her bed and helping with the dishes, were her ways of earning money. She also learned that grown-ups have jobs to earn money, like teaching, cooking, or fixing things.
Saving Money
Spriha’s parents taught her the importance of saving money. Saving means keeping a part of your money for later. Her dad told her, “When you save, you can have money for things you really want in the future.”
Spriha decided to save some of her allowance. She had her own special jar where she put her saved money, and she loved watching it grow.
Spending Money
Now, you might wonder, what’s the point of having money if you can’t spend it? Well, spending money is fun, but it’s important to spend it wisely. Spriha’s mom explained, “You need to think carefully about what you spend your money on.”
For instance, food, clothes, and school supplies are things we need, so it’s okay to spend money on them. But if you want to buy something like a toy or a game, it’s a good idea to think if it’s something you really, really want.
Budgeting
Spriha’s parents introduced her to budgeting. Budgeting is like making a plan for your money. Her mom told her, “You can set limits on how much you spend and how much you save. This way, you always know where your money is going.”
Spriha decided to create a simple budget for her allowance. She allocated some for saving, some for spending, and a little bit for sharing with her friends when they went to the ice cream shop.
Key Takeaways
- Money is a tool used to buy things we need and want, and it comes in different forms like coins and notes.
- Earning money is the first step in managing it, and kids can earn money through chores and responsibilities.
- Saving money is important to have for future needs and wants, and kids can create a savings jar to start saving.
- Spending money should be done wisely, considering needs and wants. It’s important to think before making purchases.
- Budgeting helps allocate money for saving, spending, and sharing, ensuring that you always know where your money is going.
Spriha’s journey into the world of money had just begun, and she was excited to learn more about earning, saving, and spending wisely.
In the next chapter, Spriha will discover the magic of setting financial goals and learn how to save for something she really wants.
Exercise 1: Tracking Your Savings
Now, it’s your turn to explore the world of money! Ask your parents for a small allowance. You can use a jar or a piggy bank to save a part of it and set up a simple chart to track your savings. Try to spend your money wisely, and remember to think about your needs and wants.
Step 1: Create Your Savings Chart
- Gather Materials: Get a sheet of paper, a ruler, and some coloured markers or pencils.
- Draw a Title: At the top of your sheet, draw a title that says, “My Savings Chart.”
- Draw Columns: Create three columns on the sheet. Label them as follows: “Week,” “Amount Saved,” and “Total Saved.”
- Draw Rows: Draw several rows below the columns to make a table. You can create rows for several weeks or months, depending on how long you’d like to track your savings.
- Decorate: Use your coloured markers or pencils to decorate your chart and make it unique.
Step 2: Set-up Your Savings Plan
- Choose a Goal: Think about something you want to save money for, just like Spriha wanted to save for a bicycle. It could be a toy, a game, or anything else you desire.
- Decide on Your Allowance: Talk to your parents to determine how much of your allowance you can save each week.
- Weekly Savings: Decide on the amount you want to save each week. It can be a fixed amount or a percentage of your allowance. For example, you might decide to save 20% of your weekly allowance.
Step 3: Track Your Savings
- Fill in Your Chart: Each week, when you receive your allowance, fill in the “Week” and “Amount Saved” columns on your chart. Write the week number (Week 1, Week 2, etc.) and record the amount you saved that week.
- Calculate Total Saved: In the “Total Saved” column, add up the amounts saved from the previous weeks. For example, if you saved ₹50 in Week 1 and ₹70 in Week 2, your “Total Saved” for Week 2 would be ₹120 (50+70).
Step 4: Review and Set New Goals
- Review Your Progress: Regularly look at your chart to see how your savings are growing. It’s a visual representation of your progress.
- Set New Goals: As you reach your initial savings goal, set a new one. You can start saving for something different or set a higher target.
Step 5: Share Your Progress
- Share with Your Family: Share your savings chart with your parents. They can help you stay on track and celebrate your achievements.
- Celebrate Achievements: When you reach a significant milestone or goal, celebrate your success. It can be a fun way to reward yourself for being a responsible saver.
Remember, your savings chart is a fun and helpful tool to track your progress and stay motivated on your journey toward financial literacy. It’s a visual reminder of how small amounts can add up to reach your financial goals. Keep up the good work and continue to make informed choices about your money!