Meaning, Reasons and Benefits of Saving and Savings Plan, including Savings Plan for JSS 1

Class: JSS 1
Term: First Term
Week: 7
Age: 12 years
Duration: 45 minutes
Subject: Business Studies
Curriculum Theme: Fundamental business concepts, principles and practices
Focal competence: Making informed and responsible saving decisions
Key competencies/values: Collaboration; Creativity and innovation; Information literacy; Responsibility
Skills:

• Developing a savings plan

Previous Lesson: Cashless Economy
Topic: Concept Of Saving And Savings Plan
Subject Matter: Meaning of saving, Meaning of savings plan, Ways of saving, Reasons for saving money, Benefits of saving

Specific Objectives

By the end of the lesson, pupils/students should be able to:

Cognitive Domain

• Define saving.
• Define a savings plan.
• Outline formal and informal ways of saving.
• State the benefits of saving money.

Affective Domain

• Appreciate the importance of developing a saving culture.
• Demonstrate responsibility in making saving decisions.

Psychomotor Domain

• Identify practical ways to save money.
• Participate in developing a simple savings plan.

Social Domain

• Collaborate with peers to discuss reasons for saving.

Reference Materials

The following resources were used in planning this lesson:

• 2025 Revised 9 Years Basic Education Curriculum
• Relevant State Unified Scheme of Work
• Business Studies for Junior Secondary Schools, Book 1
• The HeadTeacher Scheme of work

Instructional Materials

The teacher will teach this lesson with the aid of:

• Cardboard papers, scissors, markers, gum
• Sample of a piggy bank
• Pictures of banks
• Video clips on saving (if available)
• Internet access and digital devices (if available for online search)
• www.sabimoni.org (if internet access is available)
• Textbooks
• Pictures of financial institutions
• Saving boxes
• Flashcards
• Sample of a savings plan

Rationale for the Lesson

This lesson is important as it equips students with essential financial literacy skills from a young age. Understanding saving and savings plans helps them manage their money wisely, plan for future needs, and develop responsible financial habits that are crucial for personal and national economic growth.

Prerequisite/Previous Knowledge

Students have basic knowledge of money and its uses in daily transactions.

Lesson Content/Board Summary

Concept Of Saving And Savings Plan

Meaning of Saving

Saving is the act of setting aside money or resources for future use instead of spending it immediately. It involves putting money away, usually in a safe place, to meet future needs or achieve financial goals.

Meaning of Savings Plan

A savings plan is a structured approach or strategy developed to help an individual or group achieve specific financial goals by regularly setting aside a portion of their income or resources. It involves deciding how much to save, where to save it, and for what purpose.

Ways of Saving Money

Money can be saved through various means, which can be categorised as formal or informal:

1. Formal Ways of Saving: These involve recognised financial institutions that offer secure and regulated saving services.
   1. Banks: Commercial banks, microfinance banks, and savings banks provide accounts where individuals can deposit and keep their money safe, often earning interest.
   2. Co-operative Societies: Groups of people who pool their resources together to provide financial services, including savings, to their members.
2. Informal Ways of Saving: These are traditional or non-institutional methods of saving, often based on trust within a community.
   1. Thrift Collectors (Esusu/Ajo): Individuals or groups who collect small, regular contributions from members and return the lump sum to each member in rotation or at an agreed time.
   2. Saving Boxes/Piggy Banks: Physical containers used at home to keep money aside.
   3. Keeping Money at Home: Storing money in a safe place within the house.

Reasons for Saving Money

People save money for many important reasons:

1. To meet future needs, such as buying a new school bag or textbook.
2. To prepare for unexpected emergencies, like medical expenses.
3. To achieve specific goals, such as buying a bicycle or a gift.
4. To invest in a business or further education in the future.
5. To acquire valuable assets like land or property.
6. To gain financial independence and security.

Benefits of Saving

Saving money offers numerous advantages:

1. It provides financial security and peace of mind.
2. It helps in achieving short-term and long-term financial goals.
3. It encourages discipline and good financial habits.
4. It can earn interest, making the money grow over time (in formal savings).
5. It reduces the need to borrow money, avoiding debt.
6. It enables individuals to take advantage of opportunities when they arise.

Teaching Methods/Instructional Techniques

Discussion, Explanation, Question and Answer, Brainstorming, Demonstration, Group Work, Guided Practice

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Brainstorming/Questioning

Teacher’s Activity: The teacher greets the students and asks them questions about how they manage their pocket money and what they do with money they don’t spend immediately. The teacher then introduces the topic of saving and asks students to brainstorm factors that determine saving and the need to build a saving culture.

Pupils’ Activity: Students respond to the questions and actively participate in brainstorming, sharing their ideas on managing money and why people save.

Learning Point: Prior knowledge activation

Step 2: Meaning of Saving

Time: 8 minutes

Teaching Skill: Explanation/Definition

Teacher’s Activity: The teacher explains the meaning of saving using simple language and practical examples relevant to students’ lives. The teacher may show a piggy bank or a picture of one to illustrate the concept. The teacher also guides students to search online for information on the meaning of saving money, if digital devices are available.

Pupils’ Activity: Students listen attentively, ask questions for clarity, and define saving in their own words. If digital devices are available, they search for information.

Learning Point: Definition of saving

Step 3: Meaning of Savings Plan

Time: 7 minutes

Teaching Skill: Explanation/Concept Building

Teacher’s Activity: The teacher further explains what a savings plan is, emphasising that it’s a strategy for saving with a purpose. The teacher shows a sample of a simple savings plan (e.g., saving N500 weekly for 10 weeks to buy a N5000 item).

Pupils’ Activity: Students listen and discuss the components of a simple savings plan, understanding its purpose.

Learning Point: Definition of savings plan

Step 4: Ways of Saving

Time: 8 minutes

Teaching Skill: Classification/Illustration

Teacher’s Activity: The teacher outlines and explains the different ways of saving, categorising them into formal (banks, co-operative societies) and informal (thrift collectors like Esusu, saving boxes, keeping money at home). The teacher uses pictures of banks and a sample piggy bank to illustrate.

Pupils’ Activity: Students identify and differentiate between formal and informal ways of saving, giving examples for each category.

Learning Point: Types of saving methods

Step 5: Reasons for Saving Money

Time: 5 minutes

Teaching Skill: Discussion/Elaboration

Teacher’s Activity: The teacher leads a discussion on various reasons why people save money, linking it to the brainstorming activity in Step 1. The teacher encourages students to think about their own future needs or goals.

Pupils’ Activity: Students actively participate in the discussion, stating different reasons for saving money, including personal goals.

Learning Point: Importance of saving

Step 6: Benefits of Saving

Time: 4 minutes

Teaching Skill: Explanation/Reinforcement

Teacher’s Activity: The teacher explains the benefits of saving, highlighting how it helps achieve goals, provides security, and teaches financial discipline. The teacher also touches on challenges to saving money, which students might have found during their online search.

Pupils’ Activity: Students listen and state the benefits of saving, understanding why it is a good habit.

Learning Point: Advantages of saving

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. What is saving?
2. Define a savings plan.
3. Mention two formal ways of saving.
4. State two benefits of saving money.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Lesson understanding assessed

Step 8: Note-Taking

Time: 4 minutes

Teaching Skill: Guided Writing

Teacher’s Activity: The teacher guides pupils/students to copy the essential Board Summary notes on the meaning, ways, reasons, and benefits of saving into their notebooks.

Pupils’ Activity: Pupils/students copy the notes carefully into their notebooks.

Learning Point: Essential notes recorded

Step 9: Conclusion

Time: 2 minutes

Teaching Skill: Consolidation

Teacher’s Activity: The teacher summarises the key points of the lesson, reiterating the importance of saving and having a savings plan for a secure future. The teacher encourages students to start practicing saving.

Pupils’ Activity: Students listen and ask any final questions.

Learning Point: Main concepts reinforced

Continuous Assessment/Further Study

Type: Homework/Project

Instruction: Answer the following questions and create a simple personal savings plan.

1. Explain in your own words why it is important to save money.
2. List three things you would like to save money for in the next six months.
3. Develop a simple savings plan for one of the items you listed above. State how much you need, how much you can save weekly/monthly, and where you will keep your savings.

Lesson Keywords

• Saving – Setting aside money for future use.
• Savings Plan – A strategy for regularly setting aside money to achieve financial goals.
• Formal Saving – Saving through recognised financial institutions like banks.
• Informal Saving – Traditional or non-institutional saving methods like piggy banks or thrift collectors.
• Thrift Collectors (Esusu/Ajo) – Individuals or groups collecting regular contributions for rotational payouts.
• Financial Security – Having enough money to meet future needs and emergencies.

Differentiation

For weaker learners, provide simplified definitions and more direct examples. Use flashcards with pictures for formal and informal saving methods. For faster learners, encourage them to research different types of bank accounts available for young people or to design a more detailed personal savings plan for a larger goal.

Suggested Lesson Videos

For further understanding, search YouTube for: meaning of saving for jss1 business studies

Teacher Guide for Using This Lesson Plan

Before the lesson, ensure you have gathered all necessary instructional materials, especially a sample piggy bank and pictures of banks or financial institutions. You can also prepare a simple visual aid showing a basic savings plan. Begin the lesson by engaging students with questions about their personal money habits to make the topic relatable. During the lesson development, encourage active participation, especially during the brainstorming and discussion phases. For the online search activity, if digital devices are not available, you can provide printed information or simply lead a discussion on challenges to saving. Guide students clearly through the definitions and examples of formal and informal saving. Ensure that students understand the practical reasons and benefits of saving. Allow sufficient time for students to copy the Board Summary notes after the evaluation. Emphasise the practical application of saving in their daily lives and encourage them to start small.