TITLE OF THE MODULE
(up to 60 characters)
Short term savings in Sweden
AIMS & OBJECTIVES
(max. 4 bullet points of max. 50 characters each)
● Understanding of the meaning of short term savings;
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Learn how to save money;
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Analizy the options regarding short term savings
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money saving tips in Sweden.
DURATION OF MODULE
2 hours
Learning Methods
● Instructor-led training
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coaching mentoring
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case studies
●
role play
●
simulations
●
films and videos
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Interactive
Competencies Developed
(max. 6 bullet points of max. 50 characters each)
● Learns options to build savings
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Understands why is important to save money
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aware of risks connected money saving issues
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Learns to prioritize how to prioritize spending when there is not enough mony
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aware of money saving techniques in Sweden
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●
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Definitinition
Short term savings- Generally, your savings goals would be considered short-term if
you're planning to use the money within the next five years. Examples of short-term
savings goals include paying for a holiday, treating yourself to a new TV or smartphone
and even saving up enough money to put down a deposit on a property.
Savings Banks- A savings account is a basic type of bank account that allows you to
deposit money, keep it safe, and withdraw funds, all while earning interest. Some savings
accounts offer higher interest rates than others.)
Introduction
Saving is difficult for many people because it involves decreasing current consumption and
investing in a future standard of living. Some individuals incorrectly view savings as what is
remaining after their current wants and needs have been satisfied. The future is an unknown
risk for people, which is one of many reasons why they have such difficulty saving money.
Without developing a savings and investing plan and making savings a priority by paying
yourself first, individuals will not have the financial means to meet future financial goals such
as purchasing a car, putting a down payment on a home, and meeting retirement needs.
Savings accounts provide an easily accessible place for people to store their money to meet
daily living expenses and to have money for emergencies. Financial experts recommend
individuals keep a minimum of three to six months of salary is in a savings account. Savings
accounts generally yield a lower interest rate than investments but are more secure in that
the saver will not lose its principle.
Saving money should be viewed as a fixed expense. A popular adage describing this is “pay
yourself first,” which means to take out a portion of a paycheck for saving or investing before
using any of the check for spending. Each time a person receives money, it should be
divided by the 70-20-10 rule. This implies to spend70% of the money, save 20% of the
money, and invest 10% of the money. An individual who follows this advice is well on his/her
way to financial success. The 70-20-10 rule is ideal. A savings plan is a strategy for putting
a portion of money from current income aside, which will not be spent on consumption, to
reach a specified goal.
Face-to-Face Lesson Plan
(fill in as many rows as you need for a total duration of 2 hours
Block
Number
F1
Block Name
Block Duration
Short Description
E.g. Icebreaker
Slide 3
15 minutes
Robbery exercise
F2
Brainstorm with participants
what is short term savings.
Present Introduction to Saving
PowerPoint presentation
Breinstorm with participants
why people should save money
20 minutes
Participants will try to define
what is short term saving
Presenting the introduction.
F3
F4
15 minutes
20 minutes
Reasons People Should Save
i.Emergencies – It is
recommended individuals
have a minimum of three to
six months of salary in
savings accounts for
emergencies. Examples of
emergencies can include
illness, losing a job, or
immediate need to replace a
large item such as a washing
machine. ii. Expenses –
Savings accounts can be used
as a budgeting tool to
manage monthly expenses.
iii.Future purchases – Money
can be used to meet future
goals such as a college
education, a new car, a down
payment on a home, or a
new stereo. iv. Investing –
After an individual has
established a savings
account, money should be
invested monthly for future
income.
F5
Powerpoint presentation
about short term saving:
Definitions, goals, What makes
a good short-term savings
account?; short terms saving
options;
key Highlights.
30 min
F6
Recommendations/Tips about
money saving in Sweden
20 min
How to Save (a little bit
of) Money in Sweden
F7
F8
F9
F10
F11
Face to Face Resources required
(define all the materials that the moderators will need with their group to carry out the lesson plan
above… examples are given)
●
●
●
Laptop and projector for moderator with internet connection
Coloured Pens
Paper
●
……..
Detailed Content for each Block
(please copy the block number and titles from the lesson plan above and write the content directly
in each box…)
F1. Icebreaker – Robbery Exercise
Description:
Materials needed:
F2.
Brainstorm with participants what is short term savings. Participants will try to define what
is short term saving.
F3.
Present Introduction to Saving PowerPoint presentation.
Saving is difficult for many people because it involves decreasing current consumption and
investing in a future standard of living. Some individuals incorrectly view savings as what is
remaining after their current wants and needs have been satisfied. The future is an unknown
risk for people, which is one of many reasons why they have such difficulty saving money.
Without developing a savings and investing plan and making savings a priority by paying
yourself first, individuals will not have the financial means to meet future financial goals such
as purchasing a car, putting a down payment on a home, and meeting retirement needs.
Savings accounts provide an easily accessible place for people to store their money to meet
daily living expenses and to have money for emergencies. Financial experts recommend
individuals keep a minimum of three to six months of salary is in a savings account. Savings
accounts generally yield a lower interest rate than investments but are more secure in that
the saver will not lose its principle.
Saving money should be viewed as a fixed expense. A popular adage describing this is “pay
yourself first,” which means to take out a portion of a paycheck for saving or investing before
using any of the check for spending. Each time a person receives money, it should be
divided by the 70-20-10 rule. This implies to spend70% of the money, save 20% of the
money, and invest 10% of the money. An individual who follows this advice is well on his/her
way to financial success. The 70-20-10 rule is ideal. A savings plan is a strategy for putting
a portion of money from current income aside, which will not be spent on consumption, to
reach a specified goal.
F4.
Breinstorm with participants why people should save money. Reasons People Should Save
i.Emergencies – It is recommended individuals have a minimum of three to six months of salary in
savings accounts for emergencies. Examples of emergencies can include illness, losing a job, or
immediate need to replace a large item such as a washing machine. ii. Expenses – Savings
accounts can be used as a budgeting tool to manage monthly expenses. iii.Future purchases –
Money can be used to meet future goals such as a college education, a new car, a down payment
on a home, or a new stereo. iv. Investing – After an individual has established a savings account,
money should be invested monthly for future income.
F5.
Powerpoint presentation about short term saving: Definitions, goals, What makes a good shortterm savings account?; short terms saving options;
key Highlights.
1. What are short-term savings goals? And what type of account is best to
help achieve them?
For most of us, when we fancy making a big purchase, going on holiday, or buying a new
car, we’re going to need to do some savings first.
But where should you be keeping your money? Short term goals have different
characteristics to long-term goals like retirement, meaning they often need to be approached
differently.
2. What are short-term saving goals?
Generally, your savings goals would be considered short-term if you’re planning to use the
money within the next five years.
Examples of short-term savings goals include paying for a holiday, treating yourself to a new
TV or smartphone and even saving up enough money to put down a deposit on a property.
It can also be a good idea to think of your emergency savings as a short-term goal, as you
don’t know when you’ll need that money.
Now, you could save for these things using your piggy bank, but in reality, you’ll probably
be better off putting your money in an account with a bank or building society.
3. What makes a good short-term savings account?
The key thing to look for in a short-term savings account is how easy your money will be
to access. For this reason, you’ll want to make sure your money has kept someplace where:
● withdrawing some or even all of it doesn’t require a lot of advance notice (or, at
least, it can actually be withdrawn when you do need it).
● it’s held in cash or can be converted into cash fairly quickly without significantly
affecting its value.
In general, the easier it is to withdraw your money, the less interest you’ll be able to make
on it. The best interest rates are typically available if you tie your money up for five years
or more, which isn’t ideal when you’re saving for the short term.
4. Short-term savings: what are your options?
There are several types of savings accounts you can choose from, each with slightly
different characteristics.
● Easy-access savings account
Most banks offer some form of instant access savings account. These let you dip into your
savings whenever you need to, without having to give any notice to the bank. This makes
them well suited to house your emergency fund.
Typically, these kinds of accounts let you start off with a small initial deposit. They also tend
to let you pay in money as and when you like. But they often have very low-interest rates so
what you put in is, more or less, what you’ll get back out.
● Notice savings accounts
Notice accounts tend to offer slightly higher interest rates than easy-access accounts because
you’re tying your money up a little bit more.
When you want to make a withdrawal, you’ll have to give warning to your bank, or you risk
losing some interest. Usually, this is 30, 60 or 90 days, but it depends on your bank.
This means they aren’t that suitable for emergencies, but if you have an idea when you’ll
need your money, they may be worth considering.
● Regular savings account
Regular savings accounts require you to commit to paying in a set amount of money each
month for a specific period of time. Because of the way they’re set up, they can work
especially well if you have a definite date by which you want to reach your savings goal.
However, this kind of account may not be right for you if you can’t commit to saving a fixed
amount every month.
● High interest current accounts
At the moment, some current accounts offer considerably higher interest rates than savings
accounts. They are also safe and easy to access, so they’re well worth considering as an
alternative place to put your short-term savings. With that being said, do keep in mind that
many high interest current accounts will require you to pay in a minimum amount and to pay
out at least two direct debits each month. And interest is usually only paid on a set amount
(typically between £1,000 to £4,000).
● Flexible cash ISAs
Easy-access cash ISAs allow you to put away as much - or as little – money as you want
each month. They also let you withdraw your money whenever you need it.
A benefit of cash ISAs is that any interest you earn is tax-free, and any money in a cash ISA
stays tax-free for as long as it’s in there. So if you save in an ISA every year, over five years
you could end up sitting on a reasonable tax-free sum. However, your money may lose its
tax-free status if you make a withdrawal. For this reason, a cash ISA usually works best if
you’re planning to use the entirety of your savings all in one go.
● Fixed-rate cash ISAs
If you don’t need instant access to your money (for example if you know the exact dates by
which you’ll need it) fixed-rate cash ISAs might be worth considering.
It’s possible to invest your money for as little as six months. However, you’ll need to put
away a lump sum, usually at least £1,000. And you won’t be able to access it for the length
of the investment.
● What about investing?
If you’re wanting to make money quickly, you might be tempted to put your cash in a risky
investment – i.e. an investment with high-interest rates.
Typically, making an investment like this when you’re saving for the short term is unlikely
to be worth the risk. Since investments can go up or down in value fairly dramatically, you
may end up needing your money before it’s had time to recover, should it take a dip. In a
long-term savings strategy (say over 10 years), you’d have more time for your investments
to recover.
The other thing to consider is that high interest rates may not make a world of difference in
the short term. This is because, with short-term savings, the pot of money you start with is
relatively small and is unlikely to grow that much within 5 years. However, with a long-term
investment, your pot continues to grow as you add more money over overtime. You’ll also
earn interest on both the amount you originally saved and the interest you’ve built up. This
means the high-interest rates are more likely to start to earn you some serious money.
Comparatively, with short-term savings, there’s only so much interest you can accumulate
in under five years.
Key Highlights.
1. Any goal you want to achieve in five years or less is usually considered a shortterm savings goal.
2. Bank accounts usually work best for short-term savings goals, because your
money is relatively safe and easy to access. However, some types of investments
can also work well for short-term savings.
3. Short-term savings accounts rarely offer the best return on investment. If you
want a better return, you’ll typically need to tie up your money for longer or
take on more risk. This isn’t recommended in the short term.
4. In the short term, how much you save - and how regularly - is usually more
important than where you put your money.
F6.
Recommendations/Tips about money saving in Sweden.
It’s a common knowledge, that living in Sweden is not cheap. According to a data from
Numbeo (February 7, 2018), “Cost of living in Sweden (rent is excluded), is 15.47% higher
than in United States.” However, thanks to the Swedish ways of life, there are some things
that we can do to save a little bit of money. Here is the list based on my personal experience:
1.
Shop “home brand”
When you shop at Swedish supermarkets, you’d better check their home brand first for
comparison, as their price could be much cheaper. Some of these home brands use the
supermarket’s name like ICA; some others use totally different names because they have
cooperation with certain suppliers, like Garant and Eldorado. But, you can tell which ones
those are from their simple, plain and usually duo-tone colours packaging since that’s how
they keep the prices low. The quality of these home brand products is okay especially when
you n
2. Pantamera
Don’t worry if you can’t find a definite translation for this phrase. It is actually a combination
of two words: “panta” (recycle) and “mera” (more) and is used as a slogan to encourage
people to recycle more. Pantamera itself is considered an essential activity in Sweden and is
famous among Swedes; they even made songs about it (you can see one of the videos here).
So, how exactly does this pantamera thing helps you save some money? Pantamera gives
you “immediate reward” when you buy coca-cola, bottled water, cider, and any other
products that aren’t the healthiest and heavily taxed to discourage the public from consuming
them. These products have a recycling logo along with the amount of money they are worth,
like 1 kronor or 1.5 kronor, on their labels. This works by returning the cans or bottles to the
pantamera machines in the supermarkets and you will get money/coupon as a return. You
can also donate the money you’ve collected from pantamera by choosing the option “donate”
on the machine so it’s like saving the world and your money at the same time.
3. Buy second hand
Recycling is a lifestyle in Sweden. So, unlike in some parts of the world, there’s nothing
shameful in buying used stuff in Sweden. In fact, it gives you more advantages, as the prices
are obviously low while the quality can still be good. You can get pre-owned stuffs in second
hand shops, Sell and Buy groups, Online Marketplaces and Loppis (garage sale). Some loppis
are permanent and you usually find them at the flea markets in your city’s squares (torget)
on the weekend.
4. Bike and Walk
Whenever possible, take a walk or ride a bike in Sweden. It is healthier for your body and
“healthier” for the environment and your pocket as well. With its well-developed network of
cycle paths, biking in Sweden is a reasonable option. Getting a cheap bike is also easy
especially when you live in a student city like Lund. So, instead of spending money on public
transportation, you can invest your money to buy a bike or simply walk if your destination
isn’t too far. As Steven Wright argues, “Everywhere is walking distance if you have the
time.”
5. B.Y.O
Bring your own: your own bag, your own bottle, and your own lunch.
By bringing your own bag when you shop, you will save the cost for plastic or paper bags.
Then, by bringing your own bottle, you don’t need to spend your money on bottled water as
it is safe to refill it with tap water from the kitchen or at a refill station.
What about bringing your own lunch? Well, the average price for lunch in Lund is 59-79
kronor per portion for a single menu and 89-119 kronor for a buffet, while the price for
groceries, vegetables and fruits are way cheaper (a loaf of bread costs you less than 25 kronor
for example). Thus, making (then bringing) your own lunch is another way to save some
money.
F7.
F8.
F9.
F10.
F11.