Ages 10+ · Money · Saving and budgets
Pay yourself first
Pay arrives: 10 coins 2 coins go in the jar Spend the other 8 The jar grows by 2 A Saturday for Mina. The big idea Pay yourself first: move a share into savings the moment pay arrives.
How it works Paying yourself first means moving a share into savings the moment pay arrives, before any spending.
Mina is paid 10 coins on Saturday. Two go into her jar first, and 8 are for spending. Treats are still okay.
Saturday after Saturday the jar grows by 2 coins. After six Saturdays it holds 12, enough for a bell and a light for her bike.
Leo spends first and saves what is left, so by the week's end there is nothing left to save. A share that moves first becomes a habit.
Mina's jar 0 2 4 6 8 10 12 2 Sat 1 4 Sat 2 6 Sat 3 8 Sat 4 10 Sat 5 12 Sat 6 coins Mina's jar grows by 2 coins every Saturday. Mina: save first • The pay arrives • 2 coins go in the jar • 8 coins to spend • 12 coins by Saturday six Leo: save last • The pay arrives • He spends first • Nothing is left to save • No coins in the jar Saving first or saving last. Example 1: Moving the share first Mina is paid 10 coins. Two go into the jar first, so she can spend 10 − 2 = 8 coins. Saving came before spending. Example 2: The jar grows Each Saturday adds 2 coins to the jar. After 6 Saturdays: 2 × 6 = 12 coins. That is enough for the bell and the light. Example 3: Saving last Leo is paid 10 coins and spends first. By the end of the week nothing is left to save. Saving last often means saving nothing. Example 4: A different share If Mina moved 3 coins first, she could spend 10 − 3 = 7 coins. If she moved 1 coin first, she could spend 10 − 1 = 9 coins. A grown-up can help pick a share that feels small enough. Words to know pay yourself first Move a share into savings the moment pay arrives. share A part of your coins, like 2 out of 10. habit Something you do the same way each time, so you do not need to decide. savings Coins put away for later. Watch out Saving only what is left at the end is saving last, not paying yourself first. You can still spend the rest. Mina spent 8 coins every week. The share can be big or small. A grown-up can help pick one. The jar grows slowly, a little each Saturday. Try it Mina gets 10 coins and moves 2 into the jar first. How many can she spend? After 6 Saturdays of 2 coins, how many coins are in the jar? Saving only what is left at the end: paying yourself first, or saving last? Mina needs 12 coins and has 8. How many more does she need? Answers: 1. 8 coins · 2. 12 coins · 3. Saving last · 4. 4 coins
Try at home With a grown-up, talk about saving a share the moment money arrives. What share could feel small enough?
For grown-ups Talk about how a share could move into savings the moment pocket money arrives. What share feels small enough to hardly miss? The jar here is pretend: Tutorpip tracks money and never holds it.