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Topic 5 – Savings and superannuation

This primary school resource focuses on establishing strong foundations for learning about tax and super.

Last updated 27 February 2020

This primary school resource focuses on teaching values and actions to help establish strong foundations for learning about tax and super.

Overview

Super talk

  • Saving requires planning and making informed choices.
  • Superannuation plays a role in meeting future needs and wants.
  • The ATO supports people to save for the future.

Learning intention

In this topic, students:

  • create simple budgets to reach savings goals
  • use efficient mental and written strategies and apply digital technologies to solve real-world problems
  • make informed decisions by weighing costs and benefits, including opportunity cost
  • appreciate the long-term benefits of short-term sacrifices
  • understand and promote the importance of superannuation.

Focus questions

  • What is the difference between short-term and long-term goals?
  • How do I set and achieve savings goals?
  • What are the costs and benefits of saving?
  • What is superannuation and why is it important?

Activities

  1. Introduction – goal setting
  2. How to reach your goals – budgeting
  3. The benefits and costs of saving – estimating
  4. Long-term saving – saving worksheet
  5. Saving for retirement – an introduction to superannuation
  6. Reflection – jingle or rap
  7. Extension – presentation

Resources

Some resources are available as both a PDF and as accessible text. If a resource does not have a text version and you need an accessible version, email us at schoolseducationprogram@ato.gov.au.

Topic 5 resources

Australian Curriculum Connections

Content

  • English
  • Mathematics
  • HASS
  • HPE

General capabilities

  • Literacy
  • Numeracy
  • Information and Communication Technology Capability
  • Creative and Critical Thinking
  • Personal and Social Capability

Curriculum mapping

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Introduction – goal setting

  1. Explain to students that a goal is something that you would like to achieve. Goals can help you save for something you need or want. Goals can be:      
    • personal (I want to save money for a game)
    • belong to a group of people (e.g. My class wants to raise money for a charity).
    • short-term (something that you would like to achieve within a day, week or month).
    • long-term goal (something which will take months or years to achieve).
     
  2. Ask:      
    • Why might money-related goal setting be important?
    • Is anyone saving their money for anything in particular?
    • How are you saving?
    • Are you saving a percentage of your money, all of your money?
    • Are you saving for a short-term goal? What is it?
    • Are you saving for a long-term goal? What is it?
    • Is it important that goals be realistic? Why or why not?
    • What does realistic mean?
     

How to reach your goals – budgeting

This activity may contribute to student portfolios.

  1. Put the following scenario on the board – Indigo has the following income and expenses:      
    • monthly pocket money – $40
    • entertainment – $15
    • phone plan – $20
    • pay for watering the neighbour’s pot plants – $10
    • snack food – $10
     
  2. Ask:      
    • Does Indigo have enough money to meet her expenses each month?
    • How do you know?
    • What does Indigo earn each month?
     
  3. Write the income items on the board under the heading ‘Income’.
  4. Ask:      
    • What are Indigo’s expenses?
     
  5. Write the expense items on the board under the heading ‘Expenses’.
  6. Students calculate total income and total expenses. Record the correct answers on the board.
  7. Explain to students that the difference between income and expenses can be ‘savings’. Show as 'savings' under expenses and change 'total expenses' to $50, equal to income.
  8. Explain to students that you have written a monthly budget.
Monthly budget

Income

Expenses

Pocket money $40

Entertainment $15

Watering plants $10

Phone $20

–

Snack food $10

–

Savings $5

Total income $50

Total expenses $50
  1. Ask      
    • Why it might be useful to keep a budget?
    • How could Indigo increase monthly savings for a large purchase in the future? (either increasing income or decreasing spending).
     
  2. Students complete ‘Budget help’ – Resource 1: budget help (text version) or PDF (89KB)This link will download a file.

Teacher tip

Be mindful that some students may not earn money. If appropriate, celebrate when a student reaches their savings goal. After students have been working toward their goals for some time, discuss some of the challenges they met when trying to stay on track.

The benefits and costs of saving – estimating

This activity may contribute to student portfolios.

  1. Ask:      
    • What can you buy with $1.00?
    • Hands up if you would spend $1.00 each day if you had it.
    • If you saved $1.00 each day, how much would you have at the end of the week?
    • What can you buy for $7.00?
    • Hands up if you would spend $7.00 a week if you could?
    • Imagine you saved $1.00 every day for 5 years. I wonder how much you would have.
     
  2. Students estimate the answer and share their strategy with the class. Examples include:      
    • I multiplied by 350 by 10 then halved it.
    • I multiplied 300 by 5, then I multiplied 50 by 5 and added it.
     

Teacher tip

Depending of levels of student readiness, you could model one approach and give students time to think of another approach.

  1. Students write their strategy as number sentences. An example is: (350 × 10) ÷  2 = $1750
  2. Students use a calculator to check the reasonableness of their answers.
  3. Ask:      
    • How reasonable was your answer?
    • How much would you have saved by not spending $1.00 each day? ($1,820)
    • What are some of the things you might be able to buy with this amount of money?
    • Do you think you would save that $1 a day or $7.00 a week instead of spending it?
    • How does the feeling you get from buying something influence your decision to spend or save?
    • What are the benefits of saving instead of spending?
    • What are the benefits of spending instead of saving?
    • What were the costs of saving $1.00 a day or $7.00 a week?
     
  4. Explain to students that the cost of saving this amount of money is what they could have bought for $1.00 every day, or what they could have bought each week for $7.00. This is called ‘opportunity cost’.

Teacher tip

Provide students with internet access or shopping catalogues to see what they could buy with the amount they would have saved over five years.

Long-term saving – saving worksheet

This activity may contribute to student portfolios.

  1. Students complete the Saving worksheet (Resource 2 – PDF, 97KBThis link will download a file).

Teacher tip

Depending on the level of student readiness, this worksheet could be completed in pairs, or support provided to individual students.

  1. When students have finished the worksheet, use a grouping strategy to organise students into groups of four.
  2. Each group:      
    • Compares their answer to the question: What percentage of income do you think Diamantina should save?
    • Explains their reasons why.
    • Considers the costs and benefits of each answer.
    • Agrees on a percentage and reasons for the decision (by weighing up costs and benefits)
    • Shares their answers and justification with the class.
     
  3. As a class, decide what percentage of her income Diamantina should save. Ask:      
    • What are the benefits of this decision?
    • What are the costs for Diamantina? What will she have to give up to save this much?
     

Saving for retirement – an introduction to superannuation

  1. Explain:      
    • The federal government helps Australians to achieve long-term financial goals through the superannuation guarantee.
    • The Australian Taxation Office (ATO) makes sure that employers pay superannuation on behalf of their employees.
    • Superannuation is the money saved throughout your working life for when you retire. It is mostly made up of the money your employer puts in. You can also contribute to your super. Small contributions over time can make a huge difference later.
    • Your long-term goals are more likely to be achieved with this support.
     
  2. Give students the graphic organiser (Resource 3: graphic organiser for animation (text version) or PDF (86KB)This link will download a file) to guide them as they view the student-produced animation ‘The answer’.

Media: The answer
https://tv.ato.gov.au/ato-tv/media?v=b83zfb4nk1tanu%20External Link (Duration: 2:25)

  1. Discuss answers with students (Resource 4: graphic organiser for animation – answer sheet (text version) or PDF (88KB)This link will download a file).

Reflection – jingle or rap

This activity may contribute to student portfolios.

  1. Explain that each Community Planning Group will create either a jingle or a rap that promotes the importance of superannuation to members of their ideal community.
  2. Explain that a jingle is a short song or tune used in advertising or promotional campaigns and contains memorable slogans.
  3. Play examples of jingles and ask students to identify the slogan in each. Examples of jingles include:      
    • Weet-bix
    • Aeroplane jelly
    • Qantas
    • Vegemite
     
  4. Explain that a rap can also be used in advertising and uses slogans.
  5. Play examples and ask students to identify the slogans. Examples include:      
    • Woolworths Cricket Blast
    • Kia Sportage
     
  6. Play the student-produced ‘Superannuation rapExternal Link’ and ask them to identify as many slogans as they can.
  7. Brainstorm the slogans used.
  8. Students draft, edit and word process their jingle or rap. Remind them that the jingle or rap they produce should contain one or more hooks or slogans that explicitly promote superannuation.
  9. Students explain why it is important to be informed when making financial decisions such as Superannuation.

Teacher tip

Allow students to research the benefits of superannuation to help them create their jingle or rap.

Extension – presentation

This activity may contribute to student portfolios.

Students film their jingle or rap to showcase at the community presentations.

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Text versions of resources

The following are accessible text versions of resources for Years 5–6, Topic 5 – Savings and superannuation:

We do not have accessible text versions for all resources. If a resource does not have a text version and you need an accessible version, email us at schoolseducationprogram@ato.gov.au.

For a complete list of this topic’s resources, see Resources.

Resource 1: budget help

This resource is for Years 5–6, Topic 5 – Savings and superannuation, activity titled How to reach your goals – budgeting.

Along with this accessible version, which you can either print or use online, we also have the same resource available as a PDF – Resource 1: budget help (PDF, 89KB)This link will download a file.

The goal

Darwin is looking through shopping catalogues and finds something he’d like to buy. He found an item that costs $100. He decides that he can save this money in 4 months. Can you help Darwin reach his savings goal?

I wonder if it is possible.

Let’s see

Darwin’s current budget

Prepare a monthly budget (a listing of expected income and expenses) for Darwin. Show your work in your workbooks.

Monthly income or expense

Item

Amount $

Pocket money

$40

Music downloads

$10

Movie streaming

$10

Dog walking (money earned from neighbour)

$20

Soccer fees ($5 a week)

$20

Snack food

$10

How much money can Darwin save each month?

If Darwin saves this much, how long will it take for him to reach his savings goal?

If Darwin kept his income and expenses the same, how much money will he save in the four-month timeframe he set?

Is it possible for Darwin to reach his savings goal in the timeframe he set?

Darwin’s choices

Darwin has two choices:

  • Change the timeframe of his savings goal – that is, take longer to reach his goal.
  • Change his budget so he can reach his goal sooner.

Darwin doesn’t want to wait, so he has to reconsider his income and expenses. Help Darwin adjust his budget so he can reach his savings goal on time.

Darwin’s revised budget

Calculate how much Darwin will have to save each month to reach his savings goal on time. Darwin has three options:

  • Increase his income.
  • Reduce his expenses.
  • Increase his income and reduce his expenses.

Revise Darwin’s monthly budget so that he reaches his savings goal on time. Show your work in your workbooks.

Extension

Show how Darwin can reach his goals by using each of the options above.

Your turn

Set a realistic savings goal. Be sure to identify how much you want to save and by when. List your income and expenses each month. Now prepare a budget for yourself so that you reach your goal.

Try to keep to your budget and save to reach your goal. Track your progress using a thermometer like this one.

Savings thermometer

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Resource 3: graphic organiser for animation

This resource is for Years 5–6, Topic 5 – Savings and superannuation, activity titled Saving for retirement – an introduction to superannuation.

Along with this accessible version, which you can either print or use online, we also have the same resource available as a PDF – Resource 3: graphic organiser for animation (PDF, 86KB)This link will download a file

Questions

  1. How does taxation support a community’s health?
  2. How does taxation support a community’s safety?
  3. How does taxation support a community's happiness?
  4. What is superannuation?
  5. Who pays superannuation?
  6. What are the benefits of superannuation?
  7. Why is superannuation important?

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Resource 4: graphic organiser for animation – answer sheet

This resource is for Years 5–6, Topic 5 – Savings and superannuation, activity titled Saving for retirement – an introduction to superannuation.

Along with this accessible version, which you can either print or use online, we also have the same resource available as a PDF – Resource 4: graphic organiser for animation – answer sheet (PDF, 88KB)This link will download a file.

Questions and possible answers

  1. How does taxation support a community’s health?
    By providing local hospitals and paying for equipment and medicine
  2. How does taxation support a community’s safety?
    By providing police and fire brigades
  3. How does taxation support a community's happiness?
    By providing public roads and infrastructure
  4. What is superannuation?
    Money put away for your retirement
  5. Who pays superannuation?
    Employers, but individuals can also contribute
  6. What are the benefits of superannuation?
    It grows over the years.
    You can access it when your 60 years old.
    Gives you money for retirement and the rest of your life.
  7. Why is superannuation important?
    You may struggle in retirement without it.

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