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PSHE Quiz Illustration | Saving versus Spending
Even saving small amounts of money soon adds up.

Saving and Spending – Age 7-11

Deciding whether to save or spend is one of the first financial decisions children will have to make. This PSHE quiz, written for KS2 aged children in years 3, 4, 5 and 6, looks at this along with some of the influences that affect our spending, and what makes something “good value” or bad.

Different people have different attitudes towards saving and spending. There is no wrong attitude – as long as we have enough to pay our bills, what we do with the rest of our money is up to us. But we would be wise to save as much as we can.

We can’t save all our money though. Certain things do have to be bought. That’s where we need to be aware of what influences our choice of what to buy. It will also be good if we can spot a good bargain so that we don’t waste the money we do spend.

Susan needs some new shoes to wear for work and she wants them to last. She asks her friends for advice:
Jane says she should get the most expensive pair because all the cool people are wearing them.
Phillipa says she could get the cheapest pair because she will only wear them at work.
Mary says she should get a medium-priced pair because they will last longer than a cheap one.
Who’s advice is best?
None of them
Cheap shoes don’t usually last very long. Expensive ones are usually reserved for special occasions and you wouldn’t wear them for work. Medium priced ones are usually good quality and should last a while without spending too much money
Michael, Fiona and Janine all earn the same amount. Michael spends all his money every week. Fiona spends some and saves some, while Janine saves all hers. Who uses their money best?
There is no right answer
If Michael is happy spending all his money then that’s OK – as long as he saves enough to pay his bills.
Janine will have lots of savings, but she might become a little bored as she never treats herself. However, as long as she is happy that is her decision.
Most of us are more like Fiona. We spend some of our money and save some too
When you want to buy something but can’t choose which brand to buy, which of these is the best thing to base your decision on?
Good reviews of the product
How friendly the salesman is
Whether your friends will like it
How good the advert is
Shops and businesses want us to spend our money on their products. They do lots of thing to try to persuade us: advertising, “bargain” prices and charming salesmen. However, especially when spending a large amount of money, seeing what other people who bought the product think of it is more useful to you
Henry got his first ever job. His mum told him to save as much money as he could. His dad told him to pay his bills and spend whatever was left over. His sister told him to spend it all on treats. Whose advice was the worst?
His mums’
His dad’s
His sister’s
There is no right answer
Henry’s mum and dad both encouraged him to have enough money for bills and things he has to buy. As long as we do that, what we do with the rest of our money is up to us.
Henry’s sister told him to spend all his money on treats. That is bad advice because he will not be able to pay his bills if he does that
Where would be the best place to keep your savings?
In a safe
In a bank
Under a floorboard
Under the mattress
Not only is money in a bank safe from thieves, but the bank will also pay “interest” on your money.
If we borrow money we have to pay more back. That extra is called “interest”.
Similarly, when we put our money in a bank, they pay us some extra which is also called “interest”
Which of these is NOT a good reason to save money?
To have spare money in case of an emergency
To save up money for an expensive treat
Because money should never be spent
To save money for your retirement
Money is there to be spent. But WHAT we spend it on is our choice. We can fritter it away on lots of treats or we can save it for emergencies, for our retirement or for expensive treats like holidays or a car
James spends 50p every day on a treat from the corner shop. How much does he spend in five days?
Do you see how quickly the money we save or spend adds up?
Just 50p a day would add up to almost £200 a year – just think what you could buy with that!
Which of these is the best value for money?
Food costing £2 which will last a day
Food costing £10 which will last a week
Food costing £20 which will last a month
Food costing £100 which will last a year
There are 7 days in a week so £2 per day will cost £14 per week. £10 per week is better value.
There are 4 weeks in a month so £10 per week will cost £40 per month. £20 per month is better value.
There are 12 months in a year so £20 per month would cost £240 per year. £100 per year is the best value of all – it’s about 27p per day!
Katy wants to save some of her money. Which of these should she not pay for and save the money instead?
The rent on her home
A trip to the cinema
Her electricity bill
Food to eat
We use the money we make for two things – essentials or treats. Essentials are things we cannot do without, like homes, heating or food. Treats are things we can do without, like trips to the cinema, games or expensive clothes
If you were offered 1 chocolate bar now, 2 but not until next week, 4 next month, or 10 in two months, all for just 10p, which would be the better value?
1 bar right now
2 bars next week
4 bars next month
10 bars in two months’ time
Of course, if all the options cost 10p then 10 bars in two months’ time is by far the best value.
Saving money is a bit like that. If you save you can have more, but you have to wait for it. If you don’t save you can have things right now, but not so much of them
Author:  Graeme Haw

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