The following lesson can be used as a companion to Module 9 of Money and Youth – Taking Control of Your Money.
Relevant Subjects and Topics:
Money and Finance, Budgeting, Moving Out, Financial Planning, Decision-making
At the end of this lesson, students will be able to:
- Explain how a budget can help you to take control over your financial affairs
- Describe the key components of a budget
- Propose a rationale for having a budget
- Develop a budget for personal use
Time for Implementation:
Two class periods
Teaching and Learning Strategies:
- Begin the lesson by asking the students to indicate whether or not they have trouble saving money.
- Ask those who have trouble to explain why and those who do not to indicate how they do it.
- Ask the students to quickly write down what percentage of their money they use for various things.
- Get their responses and then ask them how they know that – is it simply a guess?
- Ask for a show of hands indicating those who put some of that money in each of a Save, Spend, Share allocation.
- With this as background, indicate to the students that the focus of the lesson will be on taking control of your money.
- Ask them to explain what they think is meant by the term “budget.” Do they think that budgets are restricting or enabling?
- Once they have provided their ideas, explain to them that budgets are enablers in that they help people to achieve their financial goals.
- Indicate to them that budgets are a type of living organism in that they get changed as situations and circumstances dictate but, in essence, budgets help a person to control their money and direct it to meet immediate and longer-term needs.
- Divide the class into working groups of three to four students and assign a budget building exercise.
- The groups are to personalize the budget by deciding the following:
- The person’s age
- Marital status
- Family status
- Once they have done this, they are to use the budget worksheet found in Handouts/Resources below and complete the form.
- Allow the remainder of the period for the completion of the task.
- Begin the period by having the groups present their budgets.
- Once this has been completed, hold a plenary session and look at the similarities and differences of the budgets.
- Once this discussion has been completed, indicate to the students that they are to use the form and create their own personal budget following these tips:
- Build your budget based on what you need and what you are hoping to achieve
- Be honest and realistic
- Keep it simple – too much complication gets disheartening
- Allow the remainder of the period for the completion of the budget and then have the students hand it in. Inform them that the budgets will be returned to them at the next period so they can see if they can follow that budget for a predetermined amount of time.
- The constructed budgets – both group and individual – can be handed in.
Modifications or Suggestions for Different Learners:
- Those with difficulty writing could have someone complete the worksheet as they dictate.
Additional Related Links:
Additional Possible Activities:
- The students could follow their personal budget for a month and then report back on their experience.
- The students could consider things they might do with the money that they have saved.
- The students could consider ways in which they could allocate those funds set aside for sharing.