Discuss the following. She had found a gift that she was sure her mother would treasure. Explain that when people work they earn income as salary or wages. When people buy goods and services, they are spending part of their income. The income that people don't spend on goods and services is called saving .
People save so they can buy goods and services in the future.
Usually people spend some income and save some income. Ask students how Sara thought she could earn income. Point out that when people save they often have a goal in mind. A short-term goal exists if a person must save for less than one year to reach the goal. Explain that savings are funds that accumulate over time, such as money in a savings account.