Story Name:  Needs vs wants and smart spending and saving

Teacher’s Notes:

a.  Key topic

Through the story we introduce the basics of a spending plan which is divided into three parts; spend, save and donate.  In addition, we go over needs and wants and explain their difference and how they should be prioritized.  Finally, we talk about saving and the power of compounding interest.

b.  Concepts Introduced to the kids through the Story

• Understand the different things we can do with money
• Learn the concepts of spending, saving and donating money
• Develop a basic understanding of how savings work and why we need to save money

c.  Learning objectives for the Kids

• Plan ways to spend wisely
• Develop proper spending habits based on the concept of needs vs wants
• Realize the power of compounding interest

d.  Tips for Teaching through Storytelling

When teaching youngsters we need to use a slightly different approach than when teaching adults, meaning that youngsters relate better to visuals, examples and stories (real life examples/stories are even better) and interactive technology.  Also, young kids do not need a lot of jargon, they need a much simpler vocabulary that they can understand.  In addition, the teacher has to figure out a way to relate to the kids and there are a number of things that can be done in this direction from the type of clothes the teachers wear, to the language they use, the way they move about in the class, etc.

Storytelling is more than just reading the words of a story out loud.  It takes other skills as well.  It is important for teachers to use different tones in their voice when they are telling a story.  If the teacher’s voice stays at the same level it becomes boring!  The teacher will want their voice to go higher and lower, louder and softer.  Teachers should try to use different voices for different characters and make sure that they speak loud enough so that everyone hears them, and say the words clearly so that everyone can understand them.

Teachers should also have in mind that storytelling is not just words; it is motion as well.  They will have to move around when they tell their story; they should use their arms, legs, hands and their face to tell the story.  In addition, they have to make sure to maintain eye contact with their audience.  Eye contract is one of the most important non-verbal ways to connect with other people.  It helps keep the attention of the audience and it also conveys a sense of confidence and truthfulness.  It is best that teachers always look directly into the kids’ eyes; they will connect with them and keep their attention longer.

e.  In-class discussion after the storytelling

• Explain the difference between needs and wants and ask the kids for some examples from their daily life.  Follow with a discussion of their examples.
• Discuss the three money choices and ask the kids for their opinion as to how these money choices should be used.  Follow with a discussion of their opinions.
• Ask the kids the following questions and discuss their answers.  Usually there is time to take and discuss the answers of 2 to 3 kids.

• • Why do people need to have a spending plan?
  • Do you think people should save and why?

The Story

It is the end of the school year in Soccertopia and the kids are having their last practice of the season before the soccer academy closes for the summer.  All the kids are excited about their upcoming vacations and they are discussing where they will go and what they plan to do during their free time this summer.  Mr. Soccerball decided that it is a good time to have another discussion about money with the kids.  As the kids gathered round and took their usual places, Mr. Soccerball took his place and said to the kids:

-This is our last get-together of the school year kids and I want us to have a discussion that will give you something to think about during your time off this summer.  We have talked a bit about money last year and today I want to talk about our choices and the different things we can do with money.

Madya quickly responded and said:  I still remember the things we learnt about money last year.  I think we would like to find out more.

-Great, said the coach.  Who can remind us why we need money?

-I can sir, replied Fiducius.  We need money to spend on things that we need first and then if there is any left we can spend it on things that we want.

-Exactly, said Mr. Soccerball.  So we have a choice to make when spending money.  Do we spend it on things we need or spend it on things we want, or perhaps spend it on both.

-Well, my mom who teaches these things always gives an example of how families should spend their money, said Fiducius.

-Let’s hear it Fiducius, we are all very interested in finding out how families should spend their money, said Mr. Soccerball.

-Well, mom uses the following example of how families should spend their money, said Fiducius:

·         Moms and dads go to work to earn money to support you and their family.

·         From the money they earn, mom and dad first pay to cover their kids’ needs.  They make sure that you and your family have a home so they pay all the bills for your house.  Then they make sure that you and your family have enough food to eat everyday and that you have clothes to wear.  These are called your basic needs.  You cannot live without them.

·         After mom and dad pay for the basic stuff, if there is any money left, they can buy things you don’t really need but which are nice to have, like toys for you or a new TV, or go on vacation!

-This is great way of explaining how families should spend their money Fiducius, said Mr. Soccerball.

-My mom says that there are three different things we can do with money, said Madya.

-And what are these Madya, asked Mr. Soccerball?

-Mom says that we have the following choices when it comes to money:

·         Spend it on buying things

·         Save it, or put money aside, rather than spend it

·         Donate it, which means giving money to help others who need it more than we do

-Your mom is absolutely right Madya, said Mr. Soccerball.  Can you kids tell me which of the above three choices is the best choice?

-Spend it on things you want sir, said Lucius.

-No, Lucius, Madya cut in.  We need to spend some, and save some for a rainy day.  This is what my mom always says.  And we should also try to give some to the people who need it more than we do.

Lucius felt a bit awkward and he turned to Madya and said:  – I guess you are right Madya, that sounds a lot better.

-There has to be a balance kids, said Mr. Soccerball.  You cannot spend all the money you have on buying things you want.  If you have any money left after your basic needs of food, clothing, shelter and schooling are met, you need to put a spending plan in place where you will spend some and save some.  And of course, we should not forget the people who are in need, who don’t have food or clothes or a home.  We should try to help them by donating whatever we can.

-I know what I am going to do now, said Lucius.  I will make a spending plan for my allowance, the chore money that I earn and the cash gifts I receive from my family on my birthday.  I will save some money until Christmas so that I can buy the guitar I want and I will also donate some money every month to the local homeless shelter.

-Sounds like a great plan Lucius, said Mr. Soccerball, don’t you agree kids?

-It is a great plan sir, replied Fiducius but I want to know a bit more about saving.  I heard people can make money when they save.

-This is a good topic Fiducius, said Mr. Soccerball, so let’s dive right into it.  Saving is the part of income that people choose to set aside for the future, perhaps for a rainy day, or to buy something big and expensive like a car, or to use it to make more money. For example, they can put the money in the bank and the bank pays them interest.  Do you know what interest is?

-I think it is an annual gift from the bank for letting them use your money, said Madya.

-That is right, said Mr. Soccerball.  Every year the bank will pay you interest and that interest adds to your savings and then earns more interest.  So your money can make you more money, a profit.  And if you leave your money in the bank for a long time your money can grow into a lot more!

-Wow, said Madya, this is brilliant.  I had not realized that your money can earn you a lot more money.  So if you save often enough and put your money in the bank, you may be able to afford to travel the world some day.

-Of course, said Mr. Soccerball, there are a lot of things you can do with your savings.

-I think I will also follow Lucius’s plan said Madya and I will spend carefully and save regularly as well  She turned to the rest of the kids and said:

-This is so exciting, and she started singing:

We have three choices to make

Save, spend or donate

Let’s choose wisely and with care

How to use our money, fair and square!

-Very well put Madya, said Mr. Soccerball with a smile, very well put!