We all love to spend money, right? Few of us have unlimited income, therefore, people need to make decisions about what goods and services to buy in order to maximize satisfaction received from income. Speaking of spending, how is it possible that the more we save, the more we can spend?
After the "Rule of 72" activity and the "Big Spender" activities, consider the following:
Reflect on Visual 7-3 "The Bigs Versus The Littles" which shows each family's spending over 35 years. Look at the impact of their savings & spending choices over 35 years!
Begin a new Blog titled "Save More, Spend More" and address the following - using complete sentences, of course!
- Using the link to the above visual (also shown in class),
- What do you notice in the 9th year?
- What do you notice about spending in year 16 between the two families?
- In year 35 which family has the higher income - and by how much?
- In year 35 which family has the larger savings account - and by how much?
- When making spending/savings decisions with a limited budget, what should consumers consider prior to spending?
- How can a higher savings rate provide the means to spend more?
- What are your thoughts now about saving/investing for your future (marriage, children, retirement)?
