Answer: Saving

Simple message for students reinforced by this research data from CFPB: Want to feel financially secure? Develop savings habits early!

Chart from CFPB's Financial Well-Being In America report:

Questions:

• Between what levels of liquid savings is there the greatest differential in financial well-being?
• How much of a difference does having a friends/family safety net make to in one's financial well-being? Why do you think this is the case?
• What financial situation/statement leads to the lowest levels of financial well-being? 
• What is the relationship between liquid savings and ability to absorb an unexpected $2,000 expense? 

Here are the ready-to-use slides for class.  

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Experience what if feels like to not have any emergency savings by playing the simulation Spent and completing this reflection worksheet.  

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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