Did Luno Buy the Helicopter?

Money is the medium used to purchase goods, and in India, this currency is called rupees. Setting aside money over time instead of spending it immediately allows a person to afford larger and more expensive items.

The purpose of saving

Daily pocket money can quickly disappear when it is spent on small treats like ice cream every single day. When money is set aside instead of being spent immediately, those small daily amounts add up to a much larger sum over time. A bank, called a vangi in Tamil, is a place where people can open an account to keep their saved money safe. Depositing daily pocket money together into a bank account over about a month, or four weeks, allows a person to afford larger items.

Forms of Indian currency

• Indian currency is divided into round metal coins and paper notes.
• Money that is round in shape is known as a coin.
• Money that is made of paper is known as a note.
• In India, 5 rupees is available as both a coin and a note.
• The values of 10 rupees and 20 rupees are also available as both coins and notes.

Denominations of Indian rupees

• In India, the smallest denomination of currency is 1 rupee.
• The next denomination is 2 rupees, followed by 5 rupees, 10 rupees, and 20 rupees.
• Currency amounts above 20 rupees are issued as paper notes.
• India has currency notes in values of 50 rupees, 100 rupees, 200 rupees, 500 rupees, and up to 2,000 rupees.

Example from the lesson

Bruno wants to buy a flying toy helicopter that costs 500 rupees, but he does not have even a single rupee left. His brother points out that Bruno would already have enough money if he had saved his daily pocket money instead of buying ice cream every day. To help him, his brother opens a bank account where Bruno can deposit his daily money. Bruno decides to stop spending money on ice cream and save for four weeks so he can buy the helicopter.