Saving for a Rainy Day
Benjamin Franklin is famous for the idiom, “a penny saved, is a penny earned,” emphasizing the importance of saving some of the money that comes to you instead of spending it all.
Why not create a little bank of your own to put a little money aside for a rainy day?
Having a little bank, it can be a classic piggy bank or just a jar or container you decorate, can help you save that hard-earned cash for some special treat for yourself or for somebody else.
- Find a container (a jar, box, basket, etc.) and decorate it however you like.
- Will your income be from an allowance, or odd jobs like babysitting, lawn care or dog walking?
- How much of your income will you save? A good savings plan will allow you to save a little for a rainy day, spend a little on yourself right now, and give a little to a good cause or charity.
- What special thing are you saving for?
Share With Us:
Post a photo of the bank you create a description of your ‘savings plan’ and the thing you are saving for with the hashtag #fdrsummer (Instagram, Twitter, or Facebook) so we can celebrate your achievements with you.
When President Roosevelt took office on March 4, 1933, the country was in the middle of a major banking crisis. Many banks had made bad investments with the money that people had trusted them with. Ordinary people put their money in savings accounts thinking it would be safe, but instead when they went to retrieve their money it was gone. Many people lost their entire life savings - every penny they had. On March 12, 1933 FDR gave a fireside chat explaining the troubled banking situation. He declared a Bank Holiday – a temporary shutdown of the banks – and promised that only the safest banks would reopen. This gave people a great deal of confidence and the next day long lines of people were seen putting their money into the reopened banks.
At that time there was no requirement for banks to guarantee your money would be there when you wanted it. Roosevelt changed that with the creation of the Federal Deposit Insurance Corporation (FDIC). Today the money you put in the bank is secure.
Developing the habit of saving money is something you should start.
- Before you see something you want to buy
- When you are young
- As soon as you have some money
- All of the above