Why Save?

Activity 

Students read a modern version of the fable, “The Grasshopper and the Ant.”           They answer questions and complete a writing activity to help the grasshopper make better decisions to achieve his financial goals.

Answer these questions about the fable.

1. What was the ant’s advice to the grasshopper the first time they met.

2. Why do you think the grasshopper ignored the ant’s advice?

3.  What would you have done if you were the grasshopper?

4.  Write a new ending for the fable after the ant and grasshopper meet again a year later.

 Procedures

 1. Introduce the purposes of saving, short-term and long-term goals, and various reasons to save.  Students can discuss the ways they currently save and their future savings plans.  Discuss the benefits of saving to achieve financial goals, including the various ways to save.

2. Review the “Rule of 72” and the benefits of compound interest.  Use the web page to compare a plan to save early versus saving later in life.  Stress the value of time when setting saving goals.    

Source: “What is the Rule of 72,”Investopedia, http://www.investopedia.com/ask/answers/04/040104.asp

3. After students complete the “Grasshopper and the Ant” activity, one additional activity is to have students write a new ending for the story, as if the grasshopper took the ant’s advice.