Level 3 · ages 13–15OECD PMSave
Auto-saving — pay yourself first
🎯 Goal: Understand to set aside savings right when money arrives (before spending), ideally automatically, to guarantee saving.
"Pay yourself first" means set aside savings as soon as money arrives, then spend the rest. Automating it avoids forgetting and temptation.
Let’s explore
1️⃣
Money arrives → save first a part (e.g., 20%), then spend the rest.
🤖
Set an automatic transfer to savings so you do not forget.
🛡️
This guarantees saving, not relying on willpower.
Practice activity
🧮 Get 1,000,000d, "pay yourself first" 20% then spend — save how much, spend how much?
Worked example: Get 1,000,000d. Pay yourself first 20% = 200,000d into savings now, then spend 800,000d. So you always save each month.
Quick quiz
1. "Pay yourself first" means?
→ Save first when money arrives, before spending
2. Get 1M, pay yourself first 20%?
→ 200,000d
3. An auto-transfer to savings helps?
→ Avoid forgetting and temptation
4. This makes saving?
→ Guaranteed
5. After paying yourself first, you spend?
→ The remaining part
🎯 Real-life mission
As soon as you get money, set aside savings before spending anything.
Related lessons
👨👩👧 For parents: teaching kids money by age
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