Saving for a Rainy day What does saving for a rainy day mean Student thoughts The expression refers to creating an emergency fund to pay for unexpected expenses such as an illness or car repairs ID: 1003305
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1. Make it happenSaving for a Rainy Day
2. Saving for a Rainy dayWhat does “saving for a rainy day” mean?Student thoughts?The expression refers to creating an emergency fund to pay for unexpected expenses, such as an illness or car repairs.
3. Emergency fundWhy is keeping an emergency fund important?What are the benefits? (Teacher led discussion here)What are the cons? (teacher led discussion here)Preparing for emergencies can increase your sense of security & reduce stress!
4. Long term expensesWhat are some long term expenses you may incur in the future? -house, college, medical bills, etcMoney should be set aside in your budget for rainy days & long-term expenses.The younger you are when you begin saving, the more your money will grow.
5. Where to keep your moneyIt is important to consider different savings plans to maximize savings.Different banks offer different options and rates: Be certain to compare servicesWhat do you do with your earnings? -Save? Spend? Put in bank? Put under mattress?Let’s take 5 minutes and look at some different options using the “where to stash your cash” handout.
6. Let’s practiceReview the three scenarios on student activity sheet 2 And answer the questions.We will review your answers as a class. I have an answer key to use for discussion.What types of saving strategies do you prefer?Remember, individual life needs will affect your savings strategiesFor example, younger people often take more savings risks than older peopleSavings for college and books is best done in an accessible account without penaltySavings for retirement can be done in an account where funds aren’t easily accessible
7. Budget updateHow can the savings strategies from this lesson can be incorporated into your current budget?Review & update your budget from last year using information from today’s lesson.
8. Final thoughtsFinancial planning is the key to financial security. It is vital that you incorporate “rainy day savings’ into your budget. This lesson was taken from practicalmoneyskills.com. Visit that website for more information about rainy day savings and other personal finance information.Visit the guidance office anytime for more information on financial planning.