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Topic: Money and Finances F1.3 – Spending and Saving

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Ontario Curriculum Expectation:

4.F1.3 explain the concepts of spending, saving, earning, investing, and donating, and identify key factors to consider when making basic decisions related to each.


Read the Following Selection

Read the following selection, or click on the play button below to listen aloud.

Spending and Saving

People spend money when they pay for goods and services. People can save money by putting it aside for the future, such as by putting money in a bank savings account. But there are other ways of saving money.

Ways to Save Money

Spending less is one way to save money. Below are a few examples of ways people can spend less.

Look for bargains: People can use the Internet and read advertising flyers to see if something they want to buy is on sale at a store. If an item is not on sale and is not needed right away, people might wait to see if the item goes on sale in the future.

Use less: People can save money by using less of things they pay for. For example, people pay for the electricity they use. The more they use, the more they have to pay each month. People can save money on electricity by using less hot water, turning off lights that are not needed, and not leaving the TV on when they are not watching it.

using a tin can as a pencil holder is a great way to upcycle

Reuse items: Before putting something in the garbage or recycling bin, people can think about whether the item can be used again. For example, computer paper that is still blank on one side can be used again by printing on the other side. People will save money by needing to buy computer paper less often.

Upcycling: Upcycling means taking something that might be thrown away or recycled and turning it into something nicer. For example, take an old tin can, remove the label, and then use a leftover piece of giftwrap to cover the outside of the can. The old tin can is now a beautiful pen-and-pencil holder. Sometimes, people sell items they have upcycled, which increases their income.

Making Decisions About Spending and Saving

Deciding how to spend and save money can take some time and thought. There are many things people need to consider when they are planning how to use their money. Below, you’ll find just a few examples.

expenses are things people spend money on

Income: Income is the money someone makes, usually by working at a job.

Mr. Koskov left a job he didn’t enjoy to start a new job that he loves. The new job pays less than the old job, so Mr. Koskov’s income has gone down. Mr. Koskov realizes that he won’t be able to spend as much money as he used to.

Expenses: Expenses are things people spend money on. Mr. and Mrs. Walker found out they are going to have a baby, which will be their first child. They know they’ll need to buy lots of things for the baby, so they’ll have more expenses. The Walkers decide to stop spending money on things they don’t really need. That will help them save money to spend on things for the baby.

how much people spend or save can depend on their age

Stage of life: How much people spend or save can depend on their age. For example, Mr. Tremblay just turned 80. He has saved money all his adult life. Now he sees that he has more money than he’ll need for the rest of his life. He decides he can afford to increase his expenses a little. “I think eating one meal a week in a restaurant is a treat I can afford,” he says.

Social conditions: Ms. Okada owns a restaurant in a small town. Most of her customers work in one of the two factories just outside of town. Ms. Okada learns that both factories have started laying off workers. She realizes that some of her regular customers might not be able to afford restaurant meals if they get laid off. There is a good chance that Ms. Okada’s income will go down. She decides it would be smart to see how she can reduce her expenses and save more money.


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