The big ideaA retirement account is a locked jar for later, filled while a person works.
How it works
Pia is a potter, and one day her hands will be tired and she will want to stop. Retirement means living on what you saved, after you stop working.
She keeps her coins in a locked jar for later. Five coins go in every year, and the lock stays shut until open day.
Opening the jar early costs a fee of one coin in every four. The lock helps people keep a promise to themselves.
In the story the jar adds nothing: only Pia puts coins in. Real jars can have helpers, like growth or a boss's top-up coins, and other episodes look at those.
Eight years of saving fed four years of living: two years of saving for each.Which jar is it for?
🫙a jar🔒a lock🪙coins in🛋️living later
A jar for later.
Example 1: Filling the jar
Pia drops 5 coins a year for 8 years.
5 × 8 = 40
So the jar holds 40 coins on open day.
Example 2: Opening early
In year 4 the jar holds 20 coins, and the fee is 1 coin in every 4.
20 is five groups of 4, so the fee is 5 coins.
20 − 5 = 15
Pia would get 15 coins, not 20.
Example 3: How many years of living?
Pia needs 10 coins a year.
40 ÷ 10 = 4
The 40 coins feed 4 years of living.
Example 4: Two for one
8 years of saving fed 4 years of living.
8 ÷ 4 = 2
That is 2 years of saving for each year of living.
Words to know
retirement
Living on what you saved, after you stop working.
lock
What keeps the jar shut until open day.
fee
What opening the jar early costs.
open day
The day the lock springs open.
Watch out
Opening early costs a fee, so taking out 12 coins gives only 9.
A few years of saving feed only a short time of living.
In the story the jar adds nothing. Only Pia puts coins in.
A retirement account is not the same everywhere. Real rules differ by place, so ask a grown-up.
Try it
Pia takes 12 coins out early, and the fee is 1 coin in every 4. How many does she get?
At 10 coins a year, how many years do 30 coins feed?
Why does the lock help Pia?
Is a retirement jar for next week's lunch?
Answers: 1. 9 · 2. 3 · 3. It helps her keep a promise to herself · 4. No
Try at homeAsk a grown-up what they save for that is far away, and what helps them keep going.
For grown-upsTalk about something your family saves for that is far away, and what helps you keep going. Real retirement accounts have their own rules that differ by place, so look up the ones near you together.
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