EXERCISE

T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e

5.1
NAME: _________________________________________ CLASS PERIOD: ____________

Wants, Wants, Wants: Now and Later

Part 1
In the spaces below, make a list of 10 goods and services that you want to have.

____________________________________ ____________________________________

____________________________________ ____________________________________

____________________________________ ____________________________________

____________________________________ ____________________________________

____________________________________ ____________________________________

Part 2
Now take your list of 10 goods and services and divide the items up into two lists.
(You do not need to have the same number of items on each list.)

Goods and services you want now: Goods and services you want in the future:

____________________________________ ____________________________________

____________________________________ ____________________________________

____________________________________ ____________________________________

____________________________________ ____________________________________

____________________________________ ____________________________________

22 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education
T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e
EXERCISE

5.2
NAME: _________________________________________ CLASS PERIOD: ____________

My Savings Goal
Directions: My Savings Goal: ___________
1. Select one of the goods or services
from either one of your lists on Part 2 of
Exercise 5.1. The item you select should
be something you really want to have—
something you are willing to save money
to get. Which item did you select?
____________________________________

____________________________________

2. Draw a picture of your good or serv-

ice in the space to the right under My
Savings Goal. Above your picture, write
in a date to tell when in the future you
would like to be able to buy this good
or service.

3.Write a sentence or two explaining why you want to have this good or service:
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

4.How much do you think this good or service will cost? Write your estimate of the
cost here:
___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education 23
 EXERCISE
T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e

5.3
NAME: _________________________________________ CLASS PERIOD: ____________

Calculate a Savings Plan

Part 1: Mark’s Savings Plan

Mark wants to buy a video game.

The sale price of the video game is $36.

Mark would like to have the game by _____________, which is six months from today.

To achieve his goal, Mark must save $__________ each month. (Use the formula
below to calculate the answer.)

Total Price = Number of Deposits x Amount of Each Deposit

($ ) =( ) x ( )

Part 2: My Savings Plan

I want to buy ____________________________________________________.

The sale price for this item is about $__________________________________.

I want to have this item by _____________, which is __________months from today.

To achieve my goal, I must save $ ________ per month for _______ months.

Now I have a savings plan.

24 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education
T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e
EXERCISE

5.4
NAME: _________________________________________ CLASS PERIOD: ____________

Decision-Making Grid

Savings Location
Alternatives

Evaluation Criteria
Value
Net

FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education 25
 EXERCISE
T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e

5.5
Savings Location Alternatives
1. A Piggy Bank
Brett decided to keep his money in a big glass piggy bank. He dropped his change
into the piggy bank every day. He could see his money “grow,” and he always had
cash when he needed it. It was a little difficult to get coins out of the piggy bank
when he needed some money, and he had to be careful not to break the glass. He
kept the piggy bank hidden in his closet because he didn’t trust his little sister.

2. Parents Hold the Savings

Talia didn’t think that she had the discipline needed to save, so she asked her parents
to keep some of her allowance and some of the money she received occasionally for
gifts. She trusted them to keep her money for her. When she wanted some money for
spending, she asked her parents to give her some. She always had to tell them what
she wanted to buy. Sometimes her parents disagreed with Talia’s spending plans.

3. A Bank Savings Account

Kate discovered that when she kept her money in a savings account at the bank, the
bank would pay her interest to help her money grow. She could get money from her
bank account whenever she wanted to, but it was a bit of a hassle to go to the bank
to make deposits and withdrawals. Seeing the bank guard made Kate feel that her
money would be safe, and she liked receiving a statement from the bank every
month; it made her feel grown up.

4. U.S. Savings Bond

Kendra was excited when Grandma told her that she would receive a gift of $50 for
her birthday. Imagine her surprise when she found something called a Series EE U.S.
Savings Bond in her gift package! Grandma explained that having this Savings Bond
would be a good way for Kendra to start saving. Grandma only had to pay $25 for
the Bond. The Bond will earn interest, and Kendra eventually will be able to ex-
change it for $50. But that won’t happen for several years.

26 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education
T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e
EXERCISE

5.6
NAME: _________________________________________ CLASS PERIOD: ____________

Savings Account Register

ITEM DESCRIPTION DEPOSIT WITHDRAWAL BALANCE

Beginning balance 5 62. 50

FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education 27
 EXERCISE
T H E M E 2 | L e s s o n 5 : S a v i n g S t a r t s W i t h Wa n t i n g M o r e

5.7
NAME: _________________________________________ CLASS PERIOD: ____________

Savings Account Activity

Ms. Mae Savalot has a savings account at a bank. She keeps a close eye on her
account so that she knows how much money she has at any given time. Every
month the bank sends her a statement that tells how much money is in the ac-
count. In between statements, Ms. Savalot keeps track of her account by using
a savings account register. The six statements below provide information about
activity related to Ms. Savalot’s account. Read the statements and help Ms.
Savalot record the necessary information in her savings account register. Your
teacher will help you work through the first three examples.

1.Ms. Savalot receives a new bank statement. It tells her that she earned $2.25 in
interest on her savings last month.

2.Ms. Savalot plays on the school’s basketball team. The team sweatshirts cost
$26 each. She decides to use buy a sweatshirt and pay for it out of her savings.

3.Last Thursday was Ms. Savalot’s birthday. She received a $25 check as a birthday
gift from her Aunt Ida. She decides to save the $25.

4.This weekend Ms. Savalot and her friends plan to go out to see a movie and have
dinner after the movie at a nearby restaurant. Ms. Savalot wants $15 to cover her
spending for this outing.

5.Ms. Savalot’s mom asks her to baby-sit for her younger brother and sister on
Sunday afternoon. Ms. Savalot earns $12 for doing this job. She decides to put half
of this money into her savings account.

6.Ms. Savalot’s brother asks to borrow $30 for a visit to an amusement park.
She agrees to lend her brother the money.

28 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education
 ASSESSMENT | Theme 2 | Saving: Lessons 4-5

NAME: _________________________________________ CLASS PERIOD: ____________

Word Bank
Read the following:

Sally and Carrie are 12 years old. They used to be neighbors, and they still are good friends. Sally
lives in Chicago and Carrie lives in Denver, so they don’t see each other very often. Sally is saving
money to buy a train ticket for a visit to Denver next month. She mows lawns and rakes leaves to earn
income. She spends some of her money and saves the rest. To have enough money to buy the ticket,
she recently had to spend a little less so that she could save a little more. She gave up going to the
movies for one month. She packed her lunch for school each day instead of buying her lunch.

Use words from the following list to complete the sentences below. Not all words from the list are
used.

income opportunity cost

short-term trade-off

long-term

1. Sally had a ___________________________ goal.

2. By spending a little less in order to save a little more, Sally is making a ____________.

3. Because going to movies was the most valued thing that Sally gave up in order to save for the train

ticket, movies are Sally’s _______________________.

FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education 29
 ASSESSMENT | Theme 2 | Saving: Lessons 4-5

NAME: _________________________________________ CLASS PERIOD: ____________

Multiple-Choice Questions
1. In the fable about the grasshopper and the ant, the grasshopper was spending all his money
now, in the present. When people spend all their money now, they:

a. give up the chance to buy more goods and services in the future.

b. give up the chance to buy goods and services now.

c. have more money left to spend in the future.

d. are saving their money.

2. Miss Smith told her students that if they turned in their homework every day for a week,
the class could have a special treat on Friday afternoon. The special treat is _______.

a. interest

b. a service

c. a trade-off

d. an incentive

3. Susie can either play soccer or basketball during recess. If Susie decides to play basketball,
soccer is her _______.

a. interest

b. incentive

c. opportunity cost

d. choice

4. Andy saves his money in a savings account at the bank. Andy is really happy because the
bank pays him to save. The money that Andy earns from the bank is _________.

a. interest

b. opportunity cost

c. a good

d. a trade-off

30 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education
 ASSESSMENT | Theme 2 | Saving: Lessons 4-5

NAME: _________________________________________ CLASS PERIOD: ____________

Word Scramble
Read the definitions below (1-4), and locate your answers in the word scrambles.

fsfoedart gnisvas

merttrohs otscttuniyorppo

1. Income not spent to buy goods and series now. ____________________________________________

2. The next-best choice that is given up when a decision is made. _______________________________

3. A goal that can be reached quickly.________________________________________________________

4. Giving up some of one thing in order to have something else. ________________________________

FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education 31
 ASSESSMENT | Theme 2 | Saving: Lessons 4-5

NAME: _________________________________________ CLASS PERIOD: ____________

Short-Answer Questions
Read the three paragraphs below and follow the directions after each paragraph.

1. Lisa has been saving money to buy new top-of-the-line inline skates, knee and elbow pads, and a
helmet. Lisa’s friend Charisse has invited Lisa to go on vacation with her family. Charisse’s family is
traveling by plane to the Grand Canyon. They plan to stay in a cabin and cook their meals there. Lisa
is very excited about the trip and really wants to go. However, she must pay for her airfare. The price
of the equipment she wants to buy is the same as the price of airfare.

Draw two pictures that illustrate Lisa’s alternatives. Decide which you think Lisa should choose.

Draw a circle around Lisa’s choice; then draw an X through Lisa’s opportunity cost. Explain
your reasons for this decision.

__________________________________________________________________________________________

__________________________________________________________________________________________

2. LaShauna baby-sits for a neighbor every Saturday afternoon. The neighbor pays LaShauna $10 for
each Saturday. LaShauna puts $3 in her piggy bank each week. Every two weeks, she has enough money
in her piggy bank to go to a movie. LaShauna also puts $2 in her bank account each week. In three
weeks, LaShauna will have enough money in the bank to buy a new video game. LaShauna uses the $5
she has left each week for snacks and items from the school store.

Write a declarative sentence showing the amount of income LaShauna earns.

__________________________________________________________________________________________

Write an interrogatory sentence about one of LaShauna’s short-term goals.

__________________________________________________________________________________________

Write an exclamatory sentence about the total amount LaShauna saves each week.

__________________________________________________________________________________________

32 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education
 ASSESSMENT | Theme 2 | Saving: Lessons 4-5

NAME: _________________________________________ CLASS PERIOD: ____________

Short-Answer Questions, continued

3. Colin earns $15 each week doing chores around the house and walking the neighbor’s dog. He re-
ally wants to go to the Battle of the Bands concert. Tickets are $35. The concert is in three months.
Right now, Colin uses his income to buy lunches at school, to buy model airplanes, to buy snacks, to
rent movies, and sometimes to go to the movies with his friends. Colin’s mom said, “Colin, you
should save some of the money you earn if you want to buy a ticket to the concert.”“But, MOM!”
Colin replied, “That isn’t fair. I just don’t have enough money as it is. Please, please buy the ticket for
me.” After talking for a while, Colin and his mom agreed that he should save $20 to pay for the
ticket and his mom would “chip in” the remaining $15. Colin doesn’t know what to do. He isn’t even
sure he knows what saving means. You are his friend, and he asks you to help him.

Write a savings plan for Colin. In the plan, explain what saving is. Include Colin’s goal, and ex-
plain whether it is a short-term or a long-term goal. Tell Colin about some trade-offs he can
make to reach his goal. Tell Colin how much he must save each week to reach his goal in
twelve weeks.

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education 33
 ASSESSMENT | Theme 2 | Saving: Lessons 4-5

NAME: _________________________________________ CLASS PERIOD: ____________

Extended-Response Questions
1. Write a fable illustrating the use of opportunity cost and trade-offs in making a good decision
about a personal finance issue or problem. Be sure that your fable ends with a moral that provides
good advice for others in similar decision-making situations.

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

2. Your friend Harry keeps the money he doesn’t spend in a shoe box under his bed. He likes to have
it nearby so he can count it. However, he worries that someone might find it and take the money or
accidentally throw the shoe box away. Write a three-paragraph persuasive letter to Harry. Explain the
advantages of using a savings account. Use information about incentives and interest. Use correct
grammar, capitalization, and punctuation, as well as correct friendly-letter format.

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

34 FINANCIAL FITNESS FOR LIFE: Student Workbook Grades 3-5 ©Council for Economic Education