Activity Title- Who Needs a Budget?

Goal/Objective

A household budget that utilizes math skills.

Lesson Outline/Introduction

A vital skill in our daily lives is financial planning. This lesson provides an opportunity to sharpen budgeting and financial planning skills.

Activity

• Take home pay of $350 after taxes each week.

Your expenses are:

• Rent $500 a month
• Utilities $280 a month
• Food $378 each month
• Clothes $20 every other week
• Entertainment $25 each week
• Incidentals $15 each week

Plan a sample budget using the amounts above. Also assume that each month has four weeks. Compute all totals monthly.

• If take home pay is $350 a week, how much could you save monthly? ($42)
• If you were saving for a TV that cost $1,100, how long would it take to buy the TV? (27 months)
• If take home pay is $400 each week, how long would it take to buy the TV? (4.5-5 months)

Debriefing/Evaluation Activity

Have students brainstorm other expenses that may occur.

Materials, Texts, Realia, Handouts

Extension Activity

Have the students create a minimum budget on which they could live. Discuss how much they would have to make monthly to stay within their budget.

ESE Accommodations

• Have students work together.
• Highlight important numbers or functions on the worksheets.
• Have students verbalize the problem-solving process before beginning the assignment.
• Allow the class to use a calculator.

 

Real-Life Connection

Have everyone plan and account for his or her expenses. Discuss why it is important to budget money. Ask students to think about the effect of credit card debt on a budget plan. Is it wiser to pay with credit or to save for the item?

Activity Title- Who Needs a Budget?

Introduction

Ask: Does anyone use a budget monthly or weekly? Why is it important to have a budget? Brainstorm with the students about why budgeting and financial planning is a vital skill for everyone's life.

Main Activity

Say: Today, we are going to work with someone else's budget. I am going to give you the basic information about a person's take home pay and expenses. You will determine the answers to some questions about this budget. Let's assume that there are four weeks in each month. Be careful that you compute all the totals correctly. Please notice that some of the expenses are monthly, weekly and some are every other week. Answer the questions and then we will share our answers.

Put the answers on a board or overhead. You may have the class work in small groups. Then have them share the answers with the group. You may also have them share their ideas for good budgeting.

Closure/Conclusion

Ask: Does the budget for this person seem reasonable? Were you surprised by some of the expenses because they were either higher or lower than you expected? Discuss that budgets vary according to how much the person earns monthly and the amount of their expenses. The important thing is always plan for the unexpected.

Follow-up lessons/Activities

Have students create a budget for themselves. First, brainstorm the different expenses. Point out that some expenses, such as car insurance, may not be paid monthly. Doctor and dentist's bills may not be paid monthly. Have the class share their budgets with the class.