Lesson 2: Saving Money

Stacks of coins, each larger than the last

Name(s) of student(s):

Age and grade level:

Goal from IEP connected to lesson:

Objective from IEP connected to lesson:

Purpose of lesson: To learn the reasons for saving money.

Materials needed: Word document


“We discussed spending money wisely and now I want to focus on saving money wisely. Saving money entails not purchasing everything we think we need or desire. Saving money also means ‘paying yourself first,’ which means prioritizing setting aside money for the future. In future lessons, we will learn how to save money, but today we will learn why we save.”

Discussion: Save Toward an Emergency Fund

“Think with me about unforeseen circumstances that can come up, leaving you needing funds. For example, what if you lost your job but still had expenses like rent, food, and transportation costs? If you had saved money in an emergency fund, you could use that fund to pay for your expenses until you found a new job. What additional unforeseen circumstances or emergencies can occur?”

Ensure the following are addressed: accident, injury, unpaid maternity leave, medical emergency, or death.

Discussion: Save Toward Short-Term Goals

“In addition to establishing an emergency fund, you will want to save toward the funding of short-term goals. Short-term savings are funds you intend to spend within the next five years. Perhaps the holidays are approaching, and you want to set aside some of your paychecks for gift-giving. Maybe you need a few new work outfits or want to plan a trip to visit family.”

Exercise: Establishing Short-Term Goals

Have the student establish 10 short-term goals for himself. Examples of goals include postsecondary education or training, renting an apartment, purchasing a laptop or iPad, updating his or her wardrobe, buying a gym membership, etc.

Discussion: Save Toward Long-Term Goals

“Without establishing long-term savings goals, spending all of your incoming money on immediate desires and short-term goals is far too easy. The future will come, and you need to be prepared for it! Long-term savings goals typically amount to large sums of money, which are much more attainable when funds are accumulated over time. Let’s brainstorm long-term goals.”

Ensure the following are addressed: Purchasing a home (starting with a down payment), retirement, and beginning to save toward college for your children when you are expecting or have a child.

Explain compound interest, one benefit of saving for long-term goals as early as possible. If money is saved and interest is earned at 10% (a high estimate), the initial money is doubled in eight years.

Exercise: Requesting Information from Parents/Guardians

Have the student ask her parents/guardians about the savings goals they have established in the past and present.


“Today, we highlighted what we save toward. We save toward an emergency fund, toward funding short-term goals, and toward funding long-term goals.”

Progress notes, data collection, comments, and modifications: