- Life skills and money
- Classes 3-5
- 3 min read
Saving and spending wisely
Learn the difference between needs and wants, how to compare prices, and how to save a little each week for something special.
Let us begin
The big idea
Money is something we must use carefully. If we spend all of it at once, we have nothing left for later. Saving a little at a time helps us reach our goals.
A need is something we must have to live and learn well, like food, water, clothes and school books. A want is something nice to have, like a new toy or a sweet.
First we spend on needs. Then, if some money is left, we can spend a little on wants.
Saving means keeping some money for later. We can keep it in a piggy bank or give it to an adult to keep safe. Savings help us when we need something big or when something unexpected happens.
Before we buy, we can compare prices. If the same notebook costs ₹25 in one shop and ₹30 in another, we can save ₹5 by choosing the cheaper one, if the quality is the same.
We can also share. Some of our money can help someone in need, always with an adult.
Worked examples
See how it works
Saving every week
Karan saves ₹8 every week. After 5 weeks he has 8 × 5 = ₹40.
Reaching a goal
Meera wants a ₹60 art set. She saves ₹10 every week. Weeks needed = 60 ÷ 10 = 6 weeks.
Dividing pocket money
Aman has ₹50. He plans to spend ₹30, save ₹15 and share the rest. Share = 50 - 30 - 15 = ₹5. Check: 30 + 15 + 5 = 50.
Need or want?
A school bag when the old one is torn is a need. A third toy car is a want.
Try it at home
Three boxes plan
You will need
- Three small empty boxes or containers
- Paper and pencil
- Crayons
What to do
- Make labels for three containers: Spend, Save and Share.
- With an adult, decide how to divide a small amount of pocket money across the three.
- Draw a picture on the Save container of something you want to buy later.
- Each week, write how much is in each container. Watch the Save one grow.
Ask a grown-up: An adult can give the pocket money and help with sums. Keep the money in a safe place at home.
Practice sheet
Check what you learned
Practice sheet: Saving and spending wisely (Classes 3-5, Life skills and money)
- Is a water bottle for school a need or a want?
- Is a new toy car a need or a want?
- Ria saves ₹5 every week. How much will she have after 6 weeks?
- A toy costs ₹60. You save ₹10 every week. How many weeks will you need?
- You have ₹50. You spend ₹30 and save ₹15. How much is left to share?
- A notebook costs ₹25 in shop A and ₹30 in shop B. Which shop is cheaper, and by how much?
- You have ₹100. You buy two pens at ₹12 each and one notebook for ₹30. How much do you spend in all, and how much is left?
- Why is it good to save money?
- Is it wise to spend all your pocket money on sweets on the first day? Why or why not?
- Tell one way you can share or help others with a little of your money. Ask an adult first.
Answer key
Answers: Saving and spending wisely
- A need.
- A want.
- ₹30 (5 × 6).
- 6 weeks (60 ÷ 10).
- ₹5 (50 - 30 - 15).
- Shop A is cheaper by ₹5 (30 - 25).
- You spend 12 + 12 + 30 = ₹54, and ₹46 is left (100 - 54).
- Savings help us buy something we really want later or help us when we need money unexpectedly.
- No. Then you would have nothing left for the rest of the month or for needs.
- Sample answers: give to a charity box with an adult, buy a gift for a friend, help someone who needs a book.