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Savings Module

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rhea lyn cabudol
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100 views6 pages

Savings Module

Uploaded by

rhea lyn cabudol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SAVINGS

Submitted to:
Dr. Marilou B. Adora

Submitted by:
Cabudol, Rhea Lyn A.
BSED- 3A
Filipino Major
SAVINGS

Learning Objectives:

At the end of the lesson, the students can be able to;

 Define savings
 List ways on how to save efficiently; and
 Determine the importance of savings in their lives.

SAVINGS

 Savings is the portion of income not spent on current expenditures. In other words, it is
the money set aside for future use and not spent immediately.

 Investment
 Reserve
 Funds
 Capital
 Money

SAVING MONEY IS DIFFICULT?

Where does your money go?

Income
Others
7
Household Expenses
Family

REASON TO SAVE YOUR MONEY


Studies
1. Save for your Emergency Fun
- An emergency fund can also help you cover unexpected medical costs, which
can pop up even if you have insurance. If you don’t have the option to save in a
Health Savings Account (HSA), an emergency fund is your next best choice.

2. Save for Retirement


- Another important reason to save money is your retirement. The sooner you start
saving for retirement, the less you will have to save in the future.

- Saving for retirement often takes place within special retirement accounts, such
as a 401(k). Money invested in these special accounts has the potential to
appreciate in value, earning interest. When that interest is compounded, it grows
even faster.

3. Save for a down Payment on a House


- Save money for a down payment on a house. If you can save up 20% of the
purchase price, you can avoid paying private mortgage insurance (PMI) and
receive better interest rates on a home loan. It can also reduce the amount you
need to borrow, making your mortgage payments more affordable.
If you don't think you can save enough to put 20% down, you can still buy a
home. Certain government-backed programs such as the Department of Veteran
Affairs (VA), Federal Housing Authority (FHA), and U.S. Department of
Agriculture (USDA) loans accept lower down payments, and sometimes even no
down payment at all. You can determine how much to save toward a home each
month based on your circumstances and other savings goals.

4. Save for a vacation, Car, or other Big Purchase


- Saving up for a big purchase beforehand means you won't pay extra in finance
costs such as interest and fees, the way you would if you put these purchases on
credit.
- You might save up for a new car, paying for it all at once instead of taking out a
car loan. Then you'll avoid having a car payment. You might even be able to
negotiate a lower price by paying in full on the spot.
- Or perhaps you're saving for a once-in-a-lifetime vacation or trip abroad. Having
an exciting goal like this can make it easier to motivate yourself to put money
away.
5. Save for Irregular or Recurring Expenses
- Set the amount of your sinking fund based on the expected cost, such as with a
home renovation, or the average of past costs, such as with car repairs.

6. College Education
- Think about saving for more than just tuition. If you or a family member will be
attending school full-time, you may also want to save up money to cover living
expenses and more.

7. Save to maximize Interest Rates


- Where you save your money matters, too. Use a regular savings account, high-
yield savings account, money market account, savings bond, or certificate of
deposit (CD) to earn interest on your savings. When interest rates go up, your

yield will go up as well.

FIVE WAYS MINIMUM WAGE EARNERS CAN SAVE

1. Start Small
2. Find a Sindline / Raket
3. Open a Bank account
4. Avoid Debt
5. Keep your eye on the goal

Activity

Answer the following question.


1. What is savings for you?
______________________________________________________________________
______________________________________________________________________

2. Do you always save and use your money wisely? Why?


______________________________________________________________________
______________________________________________________________________

3. What things do you usually save for ?


______________________________________________________________________
______________________________________________________________________

4. What are the techniques and ways to save money?


______________________________________________________________________
______________________________________________________________________

Application

Instructions: Choose a pair and Give five things that you want to buy and reasons why you
want these. Then, determine saving ways/ techniques you can do to purchase these things.

THINGS YOU WANT TO REASON WHY YOU WANT SAVING TECHNIQUES YOU
BUY CAN DO
1.
2.
3.
4.
5.

Evaluation
Budget time: Your parents give you money as your daily allowance. In not less than 200 words,
cite a scenario on how you will budget and where will you use the money that you saved.

References:

Internet

http://www.bcra.gob.ar/BCRAyVos/Aprendiendo-a-ahorrar-que-es-el-ahorro-i.asp

https://www.thebalance.com/learn-the-most-important-reasons-to-save-money-
2386123

https://www.moneymax.ph/personal-finance/articles/5-easy-ways-minimum-wage-
earners-can-start-saving

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