Spending and Saving

What children learn in Level 78

• Every money choice is a trade. If you buy one thing, you can't use that money for something else. The next-best thing you give up is the opportunity cost, a word from our trip west.
• Saving lets you reach big goals. Say Omar, a made-up kid, wants a 24 dollar kite. Saving 3 dollars a week takes 8 weeks. Saving 4 dollars a week takes just 6.
• Saving also gets you ready for surprises. A bike tire goes flat, or a friend has a birthday you forgot. When some money is set aside, a surprise is only a small problem.
• Spending isn't bad. A good budget has room for fun, and for giving. The point is to choose on purpose, so your money goes to what matters most to you.
• Spending more than your income leads to debt. But remember the sharecroppers. Their debt came from an unfair system, not from bad choices. Good choices work best when the rules are fair, and that's why fair rules are worth fighting for.