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Money · Ages 10+ · Set A
Early retirement: how it works
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Goal: 15 min
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Remember: Save more, spend less, and time opens up. There are honest limits: prices rise, surprises happen and a jar can run out.

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Three friends and their jarsSam, Rio and Kit each earned ten coins a year, so could they stop work early? They chose different plans. Sam saved two of every ten, Rio saved five and Kit saved eight. What they did not save, they spent. Sam saved for twenty years, Rio for ten and Kit for only five. Kit saved eight a year for five years, so the jar held forty, and Kit spent only two a year, so the forty coins fed twenty years. Rio saved five for ten years, so the jar held fifty, and at five a year it fed ten years. Sam saved two for twenty years, and forty lasted only five years at eight. Kit, who worked least, rested longest. Saving more fills the jar faster, and spending less makes it last longer. But there was a cost. Kit lived on only two coins a year, which left very little for surprises. Prices rise, so two coins may not stay enough, and a jar is not forever: after twenty years Kit's was empty. No plan suits everyone, and many people love their work and keep going. Real rules differ by place, and a grown-up knows the ones near you.
1
Look at the table. Sam saves 2 coins a year for 20 years, so the jar holds coins.
2
Rio lives on 5 coins a year. A jar of 50 coins lasts years.
3
Sam's jar holds 40 coins and Sam spends 8 a year. How long does it last?
8 years5 years20 years
4
Look at the bars. Whose jar lasts the longest?
Sam'sRio'sKit's
5
The biggest jar always feeds the most years.
TrueFalse

Order, match and fix

6
Circle every thing that helps someone stop work early.
Saving a bigger share of payPrices that keep risingSpending less each yearA big surprise cost with no spare coinsEarning more coins
7
Number Kit's plan.
  • Kit earns 10 coins a year
  • The 40 coins feed 20 years at 2 a year
  • Kit saves 8 and spends 2
  • After 5 years the jar holds 40
8
Join each limit to what it means.
  1. 1Prices rise
  2. 2Living on very little
  3. 3A jar is not forever
  4. 4A jar's value can swing
  • Athere may be less than planned
  • Blittle left for surprises
  • Ctwo coins may not be enough
  • Dit can run out
9
Lee says: Kit's jar will last for ever. What is the mix-up?
It feeds twenty years, then it is emptyIt lasts forty yearsA jar can never run out
10
Kit worked for the fewest years but rested the longest.
TrueFalse
11
Forty coins spent 4 a year last years.
12
Sam wants his 40 coins to last 10 years. Sam must spend coins a year.
13
Ask a grown-up what a person needs to feel ready to stop working. Write what they said.
14
Draw three jars for Sam, Rio and Kit, and write how many years each one lasts.
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