Download High School Budgeting Lesson: Needs, Wants, and Savings and more Schemes and Mind Maps Mathematics in PDF only on Docsity!
PLANNING A BUDGET
Key concepts Needs vs. wants, budgets, simple interest, savings accounts and paying yourself first
Summary This lesson is geared for high school students with a focus on managing money after graduation. It will assist them in developing a budget as they either enter the workforce, join the armed forces or if they intend to go onto college. The lesson reviews trade-offs and priorities in order to prepare a budget.
Overview & Lesson Objectives This lesson is intended for high school students in ninth through twelfth grades. The lesson teaches students the concept of budgeting and calculating simple interest on a savings account.
Students will be able to: Identify sources of income Identify monthly expenses Calculate simple interest Plan a monthly budget
Time Allocation: 15 – 20 Minute Prep 35 – 40 Minutes Engagement
Materials: Copies of Sample Budget (one per student), Copies of Blank Budget worksheet (one per student) Simple Interest Worksheet (one per student)
Lesson Begins: Setting the Stage
Background Builder #1: Have the students make the following t-chart on a piece of paper:
Needs Wants
Ask students to complete the t-chart with 4-5 examples in each column. Remind them that a need is something that we must have to survive, and a want is something we would like to have. Discuss the results with the class. You may even want to make a t-chart on the board representing the students’ most common needs and wants. Ask students to think of ways that they can get what they need and want (i.e. working and saving). Finally, tell students that saving is a good thing, and a plan or budget will help them achieve their goal and guarantee financial success.
State the Objective: Tell the students what they will be able to do upon conclusion of the lesson.
“At the end of this lesson, you will understand the purpose of budgeting and be able to create your own. You will also be able to calculate simple interest.”
Lesson Procedures
Budgeting is the process of making your needs and wants fit with the money you have. It can be difficult at times, but it is the key to making sure you have your money under control.
Review the sample budget with students to demonstrate and clarify concepts. Allow students time to work with a calculator and pencil to complete the attached budget worksheet.
Provide the following scenario:
You expect to receive $100 each month as an allowance or income from a part time job. Use your calculator and school lunch menu to determine how much money you would need to buy lunch at school every day for the current month. Allow students to copy the correct answer onto the budget worksheet.
You're saving for your own laptop and are putting aside $15/month. Is this a week when a friend is celebrating a birthday? You will need to buy a gift. Is there a new movie that you want to see with your friends? You purchase a new article of clothing. Add the following amounts together to see what your expenses will be.
Additional Engagement Opportunities / Resources
Pair and Share: Group students into pairs and ask each pair to exchange two or three new things learned during the day’s lesson. Call on select pairs to share with the whole class what has been learned.
Sample questions: What are some expenses you may have currently? What types of earnings do you gather? Define interest. What item would you be willing to save money for in order to make the purchase? o Where do you expect to get the money you’ll save? o How much spending money will be available? o Are there items you’ll need to forego in order to save enough money? o How long will it take you to save enough money for the item you want to buy?
Misinformation: Quote information from the day’s lesson purposely erroneous. Call on various students to restate the information correctly.
Samples:
A budget is not necessary to stay on track with expenses
Wants and Needs are the same thing.
Interest is what a Customer pays in order to have a savings account.
Going to the movies with friends is a Need.
What’s left out? Supply students with statements that have some information missing. This can be done verbally or it can be done on a board. Ask students to provide the missing information.
Samples:
_______is money that you earn just by having money in a savings account. o Answer is " interest"
A _______is something that we must have to survive, and a _____ is something we would like to have o 1 st^ Answers is "need", and 2nd^ answer is " want"
Your monthly savings is what is left over when you subtract monthly expenses from monthly ______________. o Answer is "income"
Amusement park tickets, gas for your car and going out to eat are all examples of monthly _______________. o Answer is "expenses"
Educational Standards
National Council of Teachers of Mathematics Principles and Standards for School Mathematics, 2000
Number and Operations – (Students will) Understand meanings of operations and how they relate to one another. Number and Operations – (Students will) Compute fluently and make reasonable estimates. Algebra – (Students will) Understand patterns, relations, and functions. Problem Solving – (Students will) Build new mathematical knowledge through problem solving. Communication – (Students will) Use the language of mathematics to express mathematical ideas precisely. Connections – (Students will) Recognize and use connections among mathematical ideas. Representation – (Students will) Create and use representations to organize, record, and communicate mathematical ideas.
NJ Core Curriculum Content Standards for Personal Financial Literacy 2014: Standard 9.1: 21st^ Century Life and Careers 9.1 B. Money Management: 9.1.12.B.1, 9.1.12.B.3, 9.1 D. Planning, Saving, and Investing: 9.1.12.D.5, 9.1.12.D. 9.1 E. Becoming a Critical Consumer: 9.1.12.E.
National Standards in K – 12 Personal Finance Education (from Jump$tart Coalition) 2017: Financial Decision Making: Standard 4, “Make criterion-based financial decisions by systematically considering alternatives and consequences.” Spending and Saving Standard 1, “Develop a plan for spending and saving.” Investing: Standard 1, “Explain how investing may build wealth and help meet financial goals.”
National Content Standards in Economics (from Council for Economic Education) 2010: Standard 1, Scarcity
Blank Monthly budget worksheet
The following is monthly budget worksheet. You can use it as you plan your own budget.
INCOME/MONEY RECEIVED
Earnings: ___________ Allowance: ___________ Gifts: ___________ Other: ___________
TOTAL: ___________
EXPENSES/MONEY SPENT
Snacks/Lunch: ____________ Clothes: ____________ Gifts Bought: ____________ Entertainment : ____________
TOTAL: ____________
EXCESS/MONTHLY TOTAL
Income: _____________ Expenses: - _____________
TOTAL (Savings): _____________
INTEREST WORKSHEET
Name: Date:
Use the formula I=PRT to solve the following problems.
- John received $100 as a gift from his grandparents for his high school graduation. He decided to save it in the bank until he decided what he would do with the money. The interest rate on his savings account is 1.5%. How much interest will he earn the first year?
- Nicole received a check for $50 when she won a local essay contest. Her mother told her to save it for college. If it earns interest at a rate of 1%, how much money will Nicole have after one year?
- When Mary’s new baby sister was born, her relatives gave her $25 to start a savings account. How much will Mary’s sister have when she turns 1 if her money is kept in the bank earning 1% interest?
- Eduardo earned $520 over the year for doing chores around the house. He decided to take $200 to the bank where it will earn 1.5% interest. How much interest will he earn if he leaves it there for 1 year?
- When Lori and Jeff got married, they put $1,000 of their gifts into a savings account in the hopes of purchasing a bigger home sometime in the future. If they get a rate of 2%, how much will they have toward their home in 1 year?
Sample Lunch Menu
Pricing
Monday's $2. Tuesday's $3. Wednesday's $2. Thursday's $3. Friday's $2.
