Budgeting

Name: ____________________ Date: ____________

Inquiry Question You’ve just won $1000 dollars! Can you make planned purchases

to stay on budget?

General Instructions Jackpot! You just won the lottery. You’ve won $1000

(one thousand dollars) cash.

Now, this may seem like a lot of money, but you must spend it and invest it wisely. In this project, you will be faced with a series of choices that will require you to sometimes choose between want vs need. In the end, you must ensure that you stay on budget. Materials you’ll need:

• This document • A pencil

Project submission:

Submit this document, fully completed. Show all of your calculations.

Budgeting

Before you won the lottery, you had a total of $500.00 in your bank account. After winning the lottery, what is total amount of money in your bank account? Total amount: ______________ This is the total amount of money you have to work with. Now, it’s time to make some decisions about where your money will go.

Bike First, you will buy a bike to enjoy! Here are your choices for bike purchases:

Bike Image Description Price Option 1

This high-end bike blends the performance and speed of 29” wheels, the simple aesthetics of 26” and the cushioning of a fat bike tyre. With 27 speed (gears) and hydro discs all round, our bikes are built to take whatever is thrown at them.

$900.00

Budgeting

Option 2

This Mountain Bikes is good for off-road and it is light weight so it’s perfect for everyday recreational use everywhere. With 18 speed gear options and disc brakes that provide good stopping power, this is a solid middle of the road bike.

$650.00

Option 3

This used bicycle is a 21-speed bike that is great for mountain trails and around the neighbourhood. It is in great shape, but is not the

colour you wanted.

$200.00 Plus $75.00 tune up

Which option did you choose? ____________________________ Why did you choose this option? Provide at least 2 reasons as to why you picked this bike. _____________________________________________________

_____________________________________________________

After purchasing your desired bike, how much money do you have left? Total amount left: _____________________

Budgeting

Trampoline

You’ve always wanted a trampoline. Here are your choices for your new trampoline:

*These prices are based on 2020 prices.

Image Description Price

11x17 Gold Olympic Trainer

Rectangular trampolines are the shape used in competition and the Olympics. This trampoline is a popular choice for families with children involved in tumbling, trampolining, or gymnastics or for those who want great bounce in their back yard.

$3700.00

Typical Backyard Trampoline

The 12' JumpTek Trampoline with Safety Enclosure includes everything you need for family fun. It's designed for weather resistance and has a 250 lb weight limit. Includes an enclosure for added safety.

$450.00

Which option did you choose? ____________________________ Why did you choose this option? Provide at least 2 reasons as to why you picked this trampoline. _____________________________________________________

_____________________________________________________

Budgeting

After purchasing your desired trampoline, how much money do you have left? Total amount left: _________________

Guitar

A guitar is the last big purchase that you really would like to make. You love listening to music, you are a great singer, and you are ready to take it a step further. Here are your choices for your new guitar:

Image Description Price

Beginner Basic Guitar

Beginner acoustic guitar; ideal for young musicians and newbie strummers alike.

$160.00

Acoustic Electric Pro

This beauty is enjoyed by amazing performers and home users alike. Rockers and country singers love this when they need an acoustic sound.

$450.00

Which option did you choose? ____________________________ Why did you choose this option? Provide at least 2 reasons as to why you picked this guitar. _____________________________________________________

_____________________________________________________

Budgeting

After purchasing your desired guitar, how much money do you have left? Total amount left: _________________

Charitable Donation

When you’re comfortable financially, it’s important to help those in need – to give back. You must pick a charity that you would like to donate to (charity cannot be friends, family, pets etc.). Talk to your parents or teacher, do a bit of research, and find a charity that you want to support. (ie. pet rescue, children’s hospital, soup kitchen, cancer/disease foundation, human rights organization) Do you want to help the homeless? Help children in need? Rescue animals? Pick a charity and fill out the information below. Name of charity: _______________________________________ What this charity supports: _____________________________________________________

Budgeting

Why you chose this charity: ________________________________ How much are you willing to give to support this cause? Amount donated: ___________________ After donating money to your desired charity, how much money do you have left? Total amount left: _________________

Investment/Savings or Tickets to Something Fun Daily living expenses are what will eat away at your budget the most! The average Canadian family spends around $86 000 a year on living expenses. This includes rent/mortgage, food, gifts etc. Information taken from: (https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110022201)

Given your remaining money, would you like to save the rest or do something else with it? Explain. _____________________________________________________

_____________________________________________________

Budgeting

Final reflection After completing this project, do think $1500 is a lot of money? Why or why not? _____________________________________________________

_____________________________________________________

_____________________________________________________ Would you change anything about how you spent your money in this project? If so, what? _____________________________________________________

_____________________________________________________

_____________________________________________________ *It’s important to note that in real life there are many ways you can invest and save your money in order to make the most of it! The important thing is that you keep track of your finances, don’t overspend, budget, and save as much as you can!