Financial Literacy Booklet for Children

Brought to you by: Oa DnceimUpeonSupported by: Your Guide to Cultivating Good Saving Habits

Contents Why Do We Hi, my Need Money? name is Dime!Save, Spend & Share 2 Hi boys and girls! Have you ever thought about thePrioritise Your Spending! 6 value of money and its significance in our daily lives?Spend with a Plan! 10 If you look around, nearly everything – from the foodIt’s Great to Be Prepared! 14 you eat to the electricity that powers your home – requires the use of money. Let us think about how we get money. By now, you may be receiving an allowance from your parents. Perhaps you might have gotten monetary rewards or cash gifts on your birthday from a relative. To help you make the most of it, join me as we learn how to Save, Spend and Share together. School fees Food Water and Entertainment electricityMy Name is... I get... Clothes____________________________ $ ___________ /week Electronic gadgets Phone bills ...And more! 1

Save, Spend & Share!Saving Regularly Slice-A-PieHaving your own money is a great thing, but that also means you have to make Did you know that the averagechoices on how to use it wisely. person saves 20%, spends 70%, and shares 10% of their income everySave Spend month?Is there something you want, but It is important not to spend more A pie chart can help you plan your monthly expenses. Decide on acannot afford? The most responsible money than we have! Read on and comfortable percentage for spending, saving and sharing, andway to get it is by saving a little bit of you will learn how to be a smart create your own below:your allowance every day until you can spender by understanding thebuy it. Purchasing it yourself will give difference between a ‘need’ and a Spendyou a great sense of achievement! ‘want’. SaveStarting young and starting small is Sharehow we begin to cultivate the habit Shareof saving. Putting aside money is Money can be used to help people,important: rather than just for buying things. You can donate money to help less(1) for your needs and wants, fortunate people, animals, and the(2) for long-term goals like university environment. Remember it is not fees or travel expenses, and about how much you give because(3) for rainy days. every little bit counts. Think of an issue you care about and talk to yourIn the near future, you will become parents or teachers on how you cana young adult new to the world of contribute!bills and responsibilities. You mightalso want to travel the world or goto university. By starting to save now,you are helping yourself to pay forthese in the future. 23

Search and You Shall Find! Make Your Own Coin Bank! Let us learn a bit more about money. Can you find the key words underlined in the If you have a fun-sized potato chips container at sentences below? home (those that come with a plastic lid), you can create your very own totem pole coin banks by KGF I L FZDSE following these simple steps: RA T FKGMNH U OUYCNE RRUC 12 TMB I I KZ P P L I E R ET RAB LO Pick a coloured duct Have an adult cut THINGS YOU NEED: T DG ZU L OX T G tape and wrap it a slit on the lid for A S T DD H I Q Z M around the container. you. - Small cans J MU RU G L K T I with lids BWB S J B T G P N 3 4$ B K P OL YM E R T - Pen knife - Duct tape Words - Cardboard A budget is a spending plan in which a fixed amount is allocated for different Make three of spending needs and is useful in monitoring expenses. them so you can stack them up! Currency is the form of money a country uses, and it varies throughout the world! Here, we use the Singapore Dollar. In Vietnam for example, their currency is 'Dong'. Use your creativity You now have one Japan uses 'Yen' and India uses 'Rupee'. to design your bank ready for personalised coin saving! Before there was money, people used to barter or trade with each other to pay bank! for the things they needed. Items such as animals, food, seashells and beads were 5 used! Polymer notes are dollar bills which are completely waterproof and more durable than paper notes. These plastic-like notes are in use in a number of countries that include Australia, Canada, New Zealand and Singapore! The factory at which a country's coins are manufactured is called a mint. 4

PSriporeitnisdeinYgou!r $50 It costs $50... that’sNeeds versus Wants Buy it! all myThere is never enough money to buy savings!everything, and we have to choose what tospend on first. How can we tell the difference No, you can’t!between a need and a want? Tip: Always fulfill aA need is something that we must have in 'need' before satisfyingorder to survive. They are essential to us. A a 'want'... even thoughgood example is food. If you do not eat, you what you want can bewould not survive for long. so tempting sometimes!Wants, on the other hand, are things NIKEY You’ll be the you dont need athat we would like to have, but are not most popular kid branded bag! anecessary for our survival. in school! Plus, cheaper one will it’s not like you work just fine!Examples of Needs: besides, you took can’t afford it! a long time to• Clean air and water This is save $50! if you• Clothing spend it all on a• Medical care exactly what bag you will have• Nutritious food savings are for! no savings left!• Shelter• Transportation• Basic utilities (e.g., electricity, water)Examples of Wants: $50!Wow what Yeah... I should be a cool using my savings• Entertainment devices backpack! on needs, not• Jewellery wants.... Let’s not• Magazines 6 buy it.• Movies• Holiday trips 7• Toys and video games• Branded items

“I’d like to buy...”Still unsure if you should buy it? Here is a decision makingflowchart to help you determine your needs and wants.START No, I think it is something he or Is it for you? No, it is a gift Did he/she request for this item? she wants. Do you already have Yes Yes something similar or does the same job? Is it broken? Yes Consider making No Can you afford it? a gift instead. No Yes Yes It is a want.No Will you face problems without it? It is a need. Yes WIll they face No problems without it? 8 9

Spend with $10... i Let’s check MToontaely P$2o0cket a Plan! wonder if my budget to SAadOvTdRtriEinthSeaxgiceaonpservnsessiannpslsog$er3$s$s52t$$$442 i’ve enough Budgeting money for find out. We now know that we cannot buy what we want all these? the time. We have to plan how to spend and save our money. Having a plan can keep you from going broke. Oh no! ♫ It can also help you to reach your saving goals. This what can i is where planning a budget comes in handy. A budget is a plan for keeping track of your money. get with Learn to be in control of your money by keeping a $2? weekly budget! Track your expenses to see if you are overspending or spending responsibly. I know! i can make a It’s Grandma’s birthday soon! I card and write a should buy a nice poem present for her. for her! 10 Thank you my dear. this is very lovely! 11

My Weekly Weekly Pocket Fold YourBudget Sheet Money Own Wallet! $________ Prepare a big piece of square paper and follow the steps below to make your own paper wallet.Now let us try out budgeting. Think about how much you want tosave before planning your expenses for the coming week and write 13the amounts down in the \"Target\" column. At the end of the week,write down how much you have saved and spent in the \"Actual\"column. Did you manage to save more than your target amount? Ifyes, well done!Category Target ActualSavings $__________ $__________ExpensesRecess (5 days): $__________ $__________Transport $__________ $__________Others $__________ $__________Additional Savings: $__________ $__________ 12

BIet’sPrGerpeaartetdo! I found this kitten in the rain and I Saving for a Rainy Day think it’s hurt. Please help! A \"rainy day\" means a time of need or trouble. When someone says they are \"saving for a rainy Later... day\", it means they are keeping an amount of money for a time when it might be needed. ?! Having a rainy day fund ensures you will always have some savings to fall back on! Unexpected I’m so glad I’ve events (both good and bad) can happen without been saving for warning. The only way to afford these \"sudden\" expenses is to have money set aside. a rainy day! Remember that you do not always have to spend what you have saved. Having I’ll go enough money for emergencies is one home to get great reason for you to keep a portion of the money! your savings untouched! 15 14

What Type Of Saver Am I? #SAVINGSGOAL The 12-Week Savings Challenge1. When it comes to saving money... 5. When I think about my future... Now that you have learnt the importance of money and how to manageA I know I should be saving, but I A I will figure it out. Saving is not it, it is time to take action by setting your #savingsgoal! Chart your never seem to be able to. my priority at the moment. progress for the next 12 weeks and see if you are able to reach yourB I spend only on things I really B I think I will have enough savings. #savingsgoal! Asallvocinagtse tao pyaorutr roafinyyoudrawy efeunkldy need. C I feel confident, since I have Week Savings Rainy Day FundC I really enjoy saving and save already started saving. e.g $5.00 $2.00 most of my money. 1 22. When I like a certain item that Mostly As 3costs more than I have… 4 Fun Lover 5A I will buy it first and figure out You enjoy life and spend money freely. 6 how to pay for it later. However, it is also important that you 7 learn how to spend wisely and save 8B I will save for it first; then I buy it. sufficiently. You can do it! 9 10C I would not buy it. I will find a 11 cheaper alternative. 12 Total3. You get $20 for your birthday. How Mostly Bsdo you spend it? Smart SpenderA Arcade games, movies, fast food You are good at distinguishing between the needs and the wants!B Books, magazines or music You also understand the importance of saving and only spend when it isC Maybe on a small treat like an necessary. Keep it up! ice cream, and I will save the rest.4. How would you describe yourself Mostly Csas a spender? Sensible SaverA I spend on whatever I want. You are careful with your money and keep your needs modest. You have B I do not spend more than I have. strong saving habits that you should be proud of. Well done!C I would rather not spend much at all. 16