Mi propia casa / Home of my own Educators Guide: Building Savings: Ways to Save

Building Savings:
Ways to Save

Objectives for this Lesson:

Recognize Reasons to Save
Identify Savings Tips

_* Include in partcipant's packet.

Resources for this Lesson:

Educator Guide:
PDF version
View on web
PowerPoint Presentation*
Content Guide for Ways to Save (PDF version):
Ways to Save
Work Sheet (PDF version):
Action Plan Work Sheet

Key Points	For Educator: What to Say	For Learner:
Slide #1: Building Savings:
Ways to Save	Introduce Yourself	Participant Introductions
Slide #2: Objective:
Recognize Reasons to Save Identify Savings Tips	Explain: By the end of this lesson, you will be able to identify reasons for saving and learn savings tips that will help you.
	Question: Can anyone tell me what the saying "Pay yourself first" means? Explain: The idea of paying yourself first means that when you receive a paycheck, you first put away money. That money will be used in the future to reach spending goals you have established. Instructor Note: Give examples of savings goals, i.e. 10% of your paycheck is automatically put into a savings account, 5% is automatically put toward a retirement fund. If you feel saving 5% - 10% is impossible, you might set a goal to save just a few dollars each month. Just $10 a month adds up to $120 toward your savings goals.	Discussion: Participants share their definitions of "paying yourself first."
	Question: What might be some other examples of savings goals?	Discussion: Participants share their ideas of savings goals.
Slide #3: Benefits of Paying Yourself First
You can learn to manage your money better. You can increase your savings. You can improve your standard of living.	Question: What are the benefits of paying yourself first? Instructor Note: Write the reasons participants discuss on the board. Bulleted points will come onto screen upon a second mouse click. Explain: Benefits of savings include: You can learn to manage your money better. You can increase your savings. You can improve your standard of living.	Discussion: Participants share the benefits they see in paying themselves first. Instructor writes reasons on the board.
Slide #4: Reasons to Pay Yourself First
Unexpected events, such as loss of job, car repair or hospitalization. Down payment for a house, car or other large purchase. Vacation. Retirement.	Question: What would be some reasons to save money? Instructor Note: Write the reasons participants discuss on the board. Bulleted points will come onto screen upon a second mouse click. Explain: Some examples include: Unexpected events, such as loss of job, car repair or hospitalization. Down payment for a house, car or other large purchase. Vacation. Retirement. Transition Statement: Regardless of your reason to save, most of us could save more money than we do. We all probably want to save more, but are not sure how to go about it. Here are some savings tips to help you think about how you could save more.	Discussion: Participants share their reasons to save money. Instructor writes reasons on the board.
Slide #5: Savings Tips
	Explain: First, you need to consider your needs versus your wants. What one person considers a need, another may consider a want.
Determine Needs vs. Want.	Question: What is a need you have? Explain: A need is something that you have to have in order to live, like food and shelter. These are things we have to spend money on. We all need to budget the cost of eating each day and paying for our housing.	Discussion: Allow participants to share what they consider needs.
Determine Needs vs. Want.	Question: What is something you consider a want? Explain: A want is something that you would like to have but can live without. Wants can be a variety of things. Some might want a new car; others might want to go to the movies every weekend. Some might want to buy a new outfit for a special occasion; others might decide they want to purchase a new kitchen appliance. Think about the items you purchase on a regular basis and consider if some of your expenses are "wants" that you can live without in order to meet your financial goals.	Discussion: Allow participants to share what they consider wants.
Use Automatic Transfer	Explain: Another savings tip is to use direct deposit or automatic transfer. When you get paid, put a portion into savings before you see it. (Pay yourself first.)
Pay Bills on Time	Explain: A third way to save is to pay your bills on time. This saves added expenses such as late fees and added interest.
Slide #6: More Savings Tips
	Explain: There are lots of other ways to save. Here are some other examples:
Open a checking account.	If you use check-cashing stores regularly, you might pay $3-$5 for each check you cash. Consider opening a checking account at a bank or credit union.
Save your bonus money.	If you get a raise or bonus from your employer, save the extra money.
Check your credit report.	Check your credit report at least once a year and make sure the information stated is accurate. A good credit rating lets you qualify for the lowest interest rate when you apply for credit.
Save your change.	Save your change at the end of the day. (Money jar).
Save your tax refund.	When you get your tax refund, save as much of it as possible.
Join a retirement plan.	If your employer offers a retirement plan, join it!
Learn about investing.	If you are interested in investing, taking a class on investing in the stock market and educate yourself about the market.
Learn about investing.	Question: This is certainly not an exclusive list. Can you think of other savings tips? Explain: There is no time like the present to start saving. Let's start right now and consider what we each can do to pay ourselves first!	Discussion: Allow participants to share other savings tips.
Learn about investing.	Let's fill out this Action Plan Work Sheet to create a plan for saving!	Activity: Action Plan Work Sheet
Slide #7: Summary
Recognized Reasons to Save Identified Savings Tips	Lesson Summary: Congratulations! You have completed Ways to Save in this Money Management series of classes. We've covered a lot of information including recognizing reasons to save and identifying savings tips.
Recognized Reasons to Save Identified Savings Tips	Question: Are there any questions?	Participant questions.