F. Financial Literacy · Money and Finances: Paying, Saving and Smart Choices

Spending and Saving: Finding a Balance

F1.4 A1About 40 minutes

Learning goals

I can explain how spending and saving are connected.
I can figure out how long it will take to save for a goal.
I can show how spending more now means waiting longer for a goal.
I can describe why people spend and save in different ways.

Words to know

savings goal
Something you are saving up for, and how much it costs.

allowance
Money some children get regularly, like each week, from their family.

balance
A good mix, so you don't do too much of one thing and not enough of another.

pay yourself first
Put money into savings as soon as you get it, before you spend any.

impulse buy
Buying something quickly without planning or thinking it through.

Let's start with a story

Mei gets $8 a week for helping at home. She wants an art kit that costs $48. Every Saturday, on the way home from the library, she passes a bakery. A cinnamon bun costs $2.

If Mei buys a cinnamon bun every Saturday, will she still get her art kit? Yes, but it will take longer. Let's find out how much longer.

A tray of iced cinnamon buns in a bakery display case. — A $2 cinnamon bun every week is a small treat, but it means Mei saves $6 instead of $8 and waits longer for her art kit. AI-generated image

How spending and saving are connected

Think of your money as one pile.

money you get = money you spend + money you save

Every dollar you spend today is a dollar you can't save.
Every dollar you save today is a dollar you can spend later, maybe on something bigger.

So spending more means saving less, and saving more means spending less now. Neither one is "bad." The trick is finding a balance that works for you.

Worked example

Example 1: Mei saves everything

Mei saves all $8 each week. How many weeks until she has $48?

Count by 8s: $8, $16, $24, $32, $40, $48. That is 6 counts.
Or think: 6 × $8 = $48. So 48 ÷ 8 = 6.

6 weeks.

Worked example

Example 2: Mei buys a cinnamon bun each week

Mei spends $2 on a cinnamon bun each week and saves the rest. How long until she has $48?

She saves $8 − $2 = $6 each week.
Count by 6s: $6, $12, $18, $24, $30, $36, $42, $48. That is 8 counts.
Or: 8 × $6 = $48.
Compare: 8 weeks − 6 weeks = 2 weeks longer.

8 weeks. Spending $2 a week means Mei waits 2 extra weeks. It's her choice: a treat every week, or the art kit sooner.

Mei's savings when she saves $6 a week: $6, $12, $18, $24, $30 after 5 weeks.

Spend each week	Save each week	Weeks to save $60
$0	$10	6 weeks
$4	$6	10 weeks
$5	$5	12 weeks
$7	$3	20 weeks

If you get $10 a week and your goal costs $60: the more you spend each week, the longer you wait.

The same goal, four plans. Saving $10 a week takes 6 weeks; saving only $3 a week takes 20 weeks.

Pay yourself first

Many people put money into savings as soon as they get it, then spend what is left. That way saving doesn't get forgotten.

Why people spend and save differently

Two people can get the same amount of money and make very different choices. Both can be good choices. Here are some reasons:

Goals: one person is saving for hockey camp; another wants something small now.
Income: some people get or earn more money than others.
Needs: some families have more needs to pay for, like a new baby, a bigger family, or medicine.
Values: some people care a lot about giving to others, or about saving for school later.
Family and culture: some families pool money to help grandparents or relatives, to celebrate special holidays, or to save for a trip to visit family.
Age and stage of life: a 9-year-old, a teenager and a grandparent have different needs and goals.
Surprises: if something breaks, money may need to be spent instead of saved.

Worked example

Example 3: Three friends, three plans

Jonah, Priya and Sam each get $20 for their birthdays. How does each one use it?

Jonah is saving for hockey camp. He saves all $20.
Priya spends $5 on a book, saves $10, and gives $5 to a fundraiser at her school. Check: $5 + $10 + $5 = $20.
Sam's family is saving to visit his grandparents. Sam adds $15 to the family trip jar and spends $5 on a snack with friends. Check: $15 + $5 = $20.
Each friend has different goals and values.

All three plans add up to $20, and all three are thoughtful choices. There's no one right way.

Watch out for impulse buys

Stores put treats and toys near the checkout so people buy them without thinking. Before you buy, ask: "Was this on my plan? Will it slow down my savings goal?"

Just for fun

What did the piggy bank say when it was finally full?

"I'm so proud of you... now please stop shaking me!"

Hands-on activity

My savings plan

You need: paper, a pencil and a ruler.

Choose a real or pretend savings goal and its price (for example, a $36 book set).
Decide how much money you get each week (pretend, if you like: for example $6).
Make a table with columns Week, Spend, Save, Total saved. Fill it in week by week until you reach your goal.
Now change the plan: spend $1 more each week. How many more weeks does it take?
Draw a bar graph of your total savings, like Mei's.

Math talk: "What is a balance between spending and saving that feels right for you? Why?"

Your turn

Ana gets $10 a week. She spends $3. How much does she save each week?

Leo saves $5 a week. How many weeks until he has $40?

If Ana spends more each week, will she reach her goal sooner or later?

Kofi saves $9 a week. How much does he have after 6 weeks?

Kofi then spends $15 of his $54 on a game. How much is left?

Give two reasons two people might spend and save differently.

Finish the sentence: Every dollar I spend today is a dollar I ____.

More practice: warm-up

You get $10. You spend $4. How much do you save?

You save $2 a week for 5 weeks. How much do you have?

You get $12. You save $12. How much do you spend?

Name something a 9-year-old might save up for.

What does pay yourself first mean?

More practice: on your own

A scooter costs $72. Ravi saves $8 a week. How many weeks will it take?

Ravi decides to spend $2 of his $8 each week and save $6. How many weeks will the $72 scooter take now?

Aisha has saved $35. She wants a $50 sweater. She saves $5 a week. How many more weeks?

Two cousins each get $20. Lucas saves it all. Hana spends $15 at a school fun fair. Is one choice wrong? Explain.

Make a plan for $30 that spends some and saves at least twice as much as it spends. Show it adds up.

Challenge

Maya gets $10 a week. Her goal costs $60. If she spends $5 a week, how many weeks will it take? If she spends only $4, how many weeks? How many weeks sooner?

Owen has saved $24. He gets $6 each week and saves it all. His goal is $60. In how many weeks will he reach it?

Rae saved $40 for a $40 tablet case. The week before she buys it, her bike tire goes flat and the repair costs $15. What happens to her plan? What could she do?

Check your understanding

Quiz

You get $10 a week. You spend $6. How much do you save each week?

Which is true?

Tom saves $5 a week. How many weeks until he has $35?

Lia saves $4 a week instead of $8. Compared to saving $8, her goal will take…

Which is a reason people spend and save differently?

Ben has saved $18. His goal is $30. How much more does he need?

For parents and teachers

What your child is learning: the Ontario curriculum (F1.4) asks Grade 4 students to explain the relationship between spending and saving, and to describe how spending and saving behaviours may differ from one person to another. The lesson uses skip counting, multiplication and division facts to find how long a savings goal will take, and compares plans. It also builds self-awareness and decision-making (A1).

Common difficulties:

Using the weekly allowance instead of the weekly savings when finding how many weeks. Ask, "How much goes into savings each week?"
Thinking one way of using money is "right." Encourage respectful talk about different goals, values and family situations.
Forgetting money already saved when working out what is still needed.

How to help: If your child receives money, help them set a small savings goal with a price and a date, and track it on a chart on the fridge. Talk about trade-offs out loud: "If we eat out this week, our trip fund grows more slowly." Avoid sharing more about family finances than you're comfortable with; the skill is the trade-off, not the dollar amounts.