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Being Smart with Money!

Chapter 2: Savings and Expenditure

After graduating, Ayie dreams of opening his own investment firm to manage a diversified business

Back to the earlier question. should you first save your money that you receive from income or spend it?

SAVE FIRST before spending!


Your income - Your savings = Your expenses from the balance

Do you know that your savings will grow over time? Try the calculator below: 

Why should Ayie save his money?

Saving for the SHORT-TERM

example To finance your needs such as new phones, watching new movies in the cinema, gift for your loved ones.

Every month, do you save or spend first?

Photo credit to David Russo

That's when his grandfather asked him:

Ayie, why not you start saving some of your daily allowances to make your dream comes true?

Ayie puzzled.... he asks himself

  • Why should I save?

  • When should I save?

  • How should I save?

Saving for the LONG-TERM

example To buy a house or a car, to start a family, or to travel the world in 5 to 10 years time

Saving for the RAINY DAYS

example Expenses for your healthcare cost due to misfortune, or losing your job (fired!)

1929 The Great Depression - many left jobless

It's not Magic or rocket science, the more you save and sooner you start, more money in the future! 


Look at the table below for the savings and profit you will earn if you keep save in the bank and tell Ayie which decision is the best decision.

What about spending?
How should Ayie spends his money?

Ayie must know that there are "needs" and "wants". He needs to prioritise and delay the wants.

NEEDS - things you need to survive

WANTS - things that you can survive without having

Photo credit to

Important lesson: I will spend on the things that I WANT only after SAVING and paying for what I NEED

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