Needs, Wants and the Three Jars: A Money Lesson for Grades 2 to 5
Learning objectives
- Tell the difference between a need and a want.
- Explain why people save part of their money.
- Divide an amount of money into Save, Spend and Share.
Materials
- Three clear cups or jars per group, labeled Save, Spend and Share
- Play money ($10 in $1 bills per group) or paper slips
- The needs and wants worksheet below (print one per student)
Lesson steps
- Warm-up (5 min): Ask: "If you had $10, what would you do with it?" Write a few answers on the board.
- Teach (10 min): Define a need (something we must have to live and be safe: food, water, shelter, clothing) and a want (something nice to have). Sort a few board answers together.
- Sort activity (10 min): Students complete the worksheet, marking each item N (need) or W (want). Discuss the tricky ones: is a phone a need or a want? It depends on the situation, and that's fine.
- Three jars (15 min): Each group gets $10 and splits it among Save, Spend and Share. Suggest a starting rule (for example $5 save, $4 spend, $1 share), then let groups choose and explain their split.
- Exit ticket (5 min): Each student writes one need, one want, and one thing they would save for.
Worksheet: need or want?
Write N for need or W for want.
| Item | N or W? |
|---|---|
| Food | |
| A new video game | |
| A warm coat | |
| Candy | |
| Medicine | |
| A toy robot | |
| Water | |
| Movie tickets | |
| A bed | |
| Sneakers with lights |
Standards
Aligns with the Jump$tart National Standards for Personal Financial Education (Spending and Saving) and the Council for Economic Education's National Standards for Personal Financial Education. Verify alignment against your own state standards.
Extension reading
For students and families who want more, Money Magic for Kids: The Ultimate Financial Adventure by Oliver Mark covers these ideas in more depth.
Money Magic for Kids: The Ultimate Financial Adventureabout 1 hr 15 min
Children's money & financial literacy (ages 7–12) · about 70 pages, illustrated · by Oliver Mark
Earning, saving, spending and giving, taught by a money wizard.
📚 Read free with Kindle Unlimited (Kindle edition)
License
This lesson plan is by Mark Oliver Books and is licensed under Creative Commons Attribution 4.0 International (CC BY 4.0). You may copy, adapt and share it with attribution. The license covers this lesson page only, not the books.
For general education only, not personalized financial, tax, legal or investment advice. Numbers are estimates based on what you enter. The Money series is written by Oliver Mark, a former licensed stockbroker (Series 7 and 63).