I am Chloe. Today we are learning the five big words of money: earning, spending, saving, investing, and donating. These aren’t just words in a textbook; they are the five paths your money can take. Every time you have a coin or a bill in your hand, you have to choose which path to follow. Each choice you make helps build your future and supports your community. Let’s look inside our jars and see what each word really means for you!I am Noah. These are not just words; they are decisions! Every financial decision involves something called a trade-off. A trade-off means giving up one thing to get something else. If you spend your money on a toy today, the trade-off is that you don’t have that money to save for a bike later. Understanding trade-offs is the secret to making choices that make you happy in the long run.I am Maya. I will help you tell the difference between your needs and your wants. This is the most important part of the “Spending” jar. A need is something you must have to be safe and healthy, while a want is something that is just fun to have. Learning to prioritize your needs is a skill that will help you for the rest of your life!And I am Liam. We will also talk about the heart of money: donating and investing. Donating is how we help others, and investing is how we help our money grow for the future. But first, let us start with the very beginning of the cycle: where money comes from. Let’s talk about Earning!Earning is the money you receive for doing work. It is the foundation that supports our basic needs. For adults, this usually means a job. For you, it might mean doing extra chores or helping a neighbor. Once you have earned money, the most common thing to do is spend it. But spending isn’t just about handing over money. You have to ask: is this a need or a want? A need is something like healthy food, a warm coat, or a safe place to sleep. A want is something like a new video game or a fancy treat. Spending on needs always comes first! The “pro” of spending is that you get what you need right now. The “con” is that once the money is spent, it is gone! This is why we have to balance our spending with other choices, like saving.Saving is putting money aside for the future. We save for “future needs” like university, “future wants” like a special vacation, and “unforeseen situations”—like if your computer breaks and needs a repair. When you save, you are making a trade-off. You are saying “no” to a small purchase today so you can say “yes” to a bigger goal tomorrow. It takes patience, but it provides a huge sense of security. Now, investing is a bit different. When you invest, you put your money into something with the hope that it will grow and become even more money over time—like buying a share of a company or putting money into a special account. But remember, investing can result in a gain or a loss. It is like planting a seed; you hope it grows into a big tree, but there is always a risk that it might not. Investing takes research and careful thinking!The final big word is Donating. Donating is giving your funds or your time to support a cause you care about. This could be an animal shelter, a food bank, or a local park project. Donating makes our communities stronger and kinder. It is a very important part of a balanced life. Every financial decision involves a trade-off. If you donate five dollars, you have five dollars less for spending, but you gain the joy of helping someone else and making the world a better place. It’s important to remember that every family and community is in a different situation. Some may be facing challenging times, while others are doing well. In our classroom, we respect every perspective and every financial journey. There is no single “right” way to divide your money; it’s about what fits your life and your values.A major pro tip is to use the “Jar Method.” You can actually set up five jars at home—one for each big word. Every time you earn or receive money, you decide how much goes into each jar. This helps you visualize your priorities. Maybe most goes into spending for your needs, a little into saving for a goal, and a small amount into donating for your favorite charity. Motivation comes from watching your jars grow! Take a look at the five jars in your lesson and imagine how you would fill them today. Remember, being smart with money starts with being thoughtful about your choices. We are proud of you for thinking about how your money can do good for you and for others. We will see you in the next video where we will talk about how everyone’s money habits are a little bit different!And remember, the Five Big Words are tools for your life. They aren’t meant to make you feel stressed, but to give you power. When you understand earning, spending, saving, investing, and donating, you aren’t just a kid with a piggy bank—you are a manager of your own future. Think about the trade-offs we talked about today. What is one thing you are willing to give up today to get something even better tomorrow? That kind of thinking is what makes a financial expert! We’ll be back to talk about habits in our final video. Great job today, everyone!
