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1. Topic-
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2. Content-
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| Saving, spending, interest rates, planning for the future |
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3. Goals: Aims/Outcomes-
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1. To help students gain an understanding of the importance of personal
budgeting
2. To convince and encourage students to use budgeting techniques
to control and manage their money effectively in the long run
3. To instill a sense of financial discipline in the student and convict
them to go and plan with their resources rather than aimlessly spending
money
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4. Objectives-
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1. Work through and complete the personal budget table using the
example numbers provided
2. See how students would be affected when sudden shocks occur financially
under well-budgeted and poorly managed situations
3. Check their understanding with a fun and interactive activity |
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5. Materials and Aids-
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| Budgeting worksheet (3 pages), calculator, pen/pencil |
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6. Procedures/Methods-
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A. Introduction-
1. Start to get students thinking by asking them a set of questions
and seeing their pre-lesson thoughts on budgeting.
2. Ask them, "If you were to receive $100 dollars today from your
parents, how much of it would you spend, and on what?"
3. Looking at their responses, and allowing them to compare to other
students, they would gain a better understanding that each one spend
their money differently. |
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B. Development-
1. Introduce the concept of budgeting as making a list of expected
income and expenses for a time period.
2. Show that the use of a table format to plan a budget can be very
useful.
3. Ask them for reasons why it might be important to make a budget
for each month of the year, and encourage their response over to the
correct answer. |
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C. Practice-
1. Run through an example using the budgeting worksheet attached,
staring with a simple income of $20,000.
2. After completing, have each one review their tables, making them
think about whether they allocated enough money to each section, including
savings. Remind them that sometimes things can happen unexpectedly
that require funds, such as having a child or car accidents. Place
out an unexpected cost, (e.g. $4300 in unexpected car repairs when
colliding with another car on the highway). Ask them whether they
have enough money saved up to pay for this, or have they spent too
much of it?
3. Afterward, have them switch to the second table, and ask them to
fill it out again, keeping in mind this time that they can't always
predict the future, and therefore, putting some money always into
saving could be extremely wise. Remind them that putting money in
savings accounts not only makes sure that there is money on hand for
emergencies, but that money sitting in the bank earns money as well,
dependent on the interest rate. So holding off a bit of consumption
now can help increase the amount of things they can buy in the future.
4. Finally switch to scenario 3, where debt has become been added
as an expected expense, and ask students where they shifted their
money from to accommodate this new cost. Help them keep in mind that
dipping into savings should be considered against, since unexpected
events can still arise and don't happen any less frequently just because
they have debt repayment. |
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E. Checking for understanding-
1. Play a quick interactive game with the students. Have 2 teams
for the class. And ask (not with the help of their worksheets) each
team to write down and rank 5 expected areas of expenses, aiming for
popular responses, like in "Family Feud". Each correct response from
pre-designated top 10 responses on teacher's list will get x amount
of points, determined by popularity. More popular responses (indicating
more important areas of expenses) earn more points.
2. Ask them to write down 5 legitimate unexpected expenses or shocks
that can arise at any time. Each correct response warrants y amount
of points (x and y are arbitrary and can be left up to the instructor
to determine their value)
3. Tally up points and see which team won. Winning team gets treat
of some sort (candy, extra credit points, etc.) |
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F. Closure-
1. Ask students to return to their seats and run through closure
questions, to make sure students grasped the concepts. Make sure they
can answer why budgeting is important, how can they organize their
expenditures and expected income, and why is it important to stick
to the budget.
2. Encourage them to make a budget for this week and try to stick
to it. Have them evaluate at the end of the week and see how well
they were able to stay within their proposed spending limits in each
area. |
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