Lesson sheet · Module 8 # The iron principles of cash flow ## The aim of the lesson | # | Principle | One sentence | |---|---|---| | 1 | **Pay yourself first** | Saving is the first expense — automatically. | | 2 | **The reserve comes first** | A small reserve now, a big one over time. | | 3 | **Expensive debt is a fire** | Put it out first; the method you will stick to is the best one. | | 4 | **Know where the money goes** | Without the numbers there is no choice. | | 5 | **Postpone, but live** | Postpone for a goal, not out of fear. | | 6 | **Separate money — separate accounts** | Person ≠ company ≠ project. | | 7 | **Know how many weeks the money lasts** | Check the runway every week. | | 8 | **Profit is not cash** | A promise does not pay the bills. | **Your step in Pecuvo — for the whole module:** five minutes every week: 1. the balance; 2. how many weeks the money lasts; 3. the goals; 4. the debts; 5. budget against actuals. This is the habit that turns the principles into behaviour. ## The topic (chapters of the module) 1. Principle 1 · Pay yourself first 2. Principle 2 · The reserve comes first 3. Principle 3 · Expensive debt is a fire 4. Principle 4 · Know where the money goes 5. Principle 5 · Postpone, but live 6. Principle 6 · Separate money — separate accounts 7. Principle 7 · Know how many weeks the money lasts 8. Principle 8 · Profit is not cash ## For the youngest · ages 6–7 🐣 **The youngest:** When you get coins, first put one in the piggy bank. The rest are for spending. The piggy bank keeps a little money "just in case". That way, if you need something, you have your own coins. **Play together (5 minutes):** Act out "a day with pocket money": give your child 5 buttons or coins. First the child drops one into the piggy bank, then "goes shopping" at home with the rest. In the evening, count together what is left in the piggy bank. **A question for the evening:** "What would you put in your piggy bank first, and why?" **A game from the catalogue:** SP-01 "The three jars" — [https://pecuvo.eu/igri/katalog/#sp-01](https://pecuvo.eu/igri/katalog/#sp-01) (in Bulgarian) ## Questions for the class — 3 per level - 👧 1. What do you put in the piggy bank first? 2. Why is it good to have money "just in case"? 3. If you have €10 and spend €2 a week, how many weeks will it last? - 🧑 1. Why can "buy now, pay later" be expensive? 2. What is the difference between the "avalanche" and the "snowball"? 3. What does the "marshmallow test" not prove? - 🧔 1. Why does automatic saving work better than intention? 2. How do you work out how long the money lasts (the runway)? 3. How can a profitable company go bankrupt? ## A 45-minute plan - **5 min:** The question for the evening or one from “Check yourself” — what do the pupils think? No right or wrong answers. - **15 min:** One or two chapters of the module at the level of the class (the “child · teenager · adult” buttons on the page). - **10 min:** The game or the calculator for the topic — in pairs or on the board. - **10 min:** The questions for the class. If you like, the open test — everyone writes down only their code. - **5 min:** The iron principle in the pupils' own words and one small step for home. ## Tools for the lesson - [The whole module on the website](https://pecuvo.eu/en/modules/the-iron-principles-of-cash-flow/) pecuvo.eu/en/modules/the-iron-principles-of-cash-flow/ - [Calculator: Saving for a goal](https://pecuvo.eu/en/calculators/savings-goal/) pecuvo.eu/en/calculators/savings-goal/ - [Calculator: Emergency fund](https://pecuvo.eu/en/calculators/emergency-fund/) pecuvo.eu/en/calculators/emergency-fund/ - [Calculator: Pay yourself first](https://pecuvo.eu/en/calculators/pay-yourself-first/) pecuvo.eu/en/calculators/pay-yourself-first/ - [The open test (9 questions) — pupils write down only their code (e.g. K4B11), no names; the class distribution is shown on the same page](https://pecuvo.eu/en/test/) pecuvo.eu/en/test/ - [The Glossary — terms explained simply](https://pecuvo.eu/en/glossary/) pecuvo.eu/en/glossary/ No personal data of pupils. Children under 14 — with a teacher or a parent. Do not compare individual pupils. Knowledge, not financial advice. The sheets may be freely printed and copied for lessons, clubs and families, with the source pecuvo.eu. They may not be sold.