Unit Three Budgeting

Students will learn the importance of creating and maintaining a personal budget. Students will create personal budgets and evaluate other budgets through case study analysis.

http://www.youtube.com/watch?v=nFY0HBkUm8o

Lesson One: Budgets

Objectives:• Students will explain who uses a

budget and why.• Identify components of a

successful budget.

IntroductionNearly everyone wants to earn money, or at least have more money to spend. Yet many people may not take the time to plan how to use their income and make it stretch further. To create a sound financial future, financial planning is critical, and a budget plays an important role in that planning.

Copy the definitions into your Word document.

Budget- a record of income and spending or a plan for managing money

To successfully plan a budget• Set short-and long-term goals

• Figure monthly income

• Categorize spending

• Project how much will be spent in each category

• Follow the budget for a month

• Adjust the budget as needed, and continue to

follow it.

Partner ActivityTake turn reading aloud sections of “The Role a Budget Plays in Personal Finance” on page 67 of your workbook.

Income- money earned from a job or investments

Expenses- money paid for needs and wants

Whole Group Discussion1. What is the difference between needs and wants?

2. Identify personal needs and wants.

3. Identify long and short term goals.

4. Create a usable spending plan.

5. Establish savings and investing goals.

6. Understand fixed and variable expenses.

7. Design a realistic budget.

Create a TableCreate a table in Word to organize the budget categories. Your table should be 15 rows and 2 columns. Fill in the information from the pie graph.

PYF- Planning Your Future!Category Percentage of Income

Whole Group Activity

Complete the Case Study on pg. 68-69 of your workbook. You will use an Excel spreadsheet. You type your answers on a Word document.

Whole Group Activity

Complete What if and Budget on pgs. 70-71. Discuss different What-if scenarios.

SummaryRemember- budgeting is not only something that individuals do, but something governments, churches, schools, and businesses must be responsible for as well.

Does anybody have a question?