2. Students will be able to define the following key
terms:
budget, expenses, income, wants, needs, fixed
income, unexpected expense, and debt
Students will be able to plan a working budget
Receive knowledge to develop a budget to use in
their family/personal life
Create a budget using spreadsheets
Distinguish between wants and needs
Categorize wants into a list
Categorize needs into a list
Because of this exercise, students will understand
their income, expenses, and plan a realistic budget.
3.
4. This lesson will include real world reading, math, and
technology skills used in monthly financial planning.
Lesson Focus: Practical understanding of budgeting
and differentiate between the “I want it” and “I need
it” columns.
Lesson Goal: To spend less than what we
earn, make better financial decisions, and deposit
any money left into a savings account.
6. A Budget is a plan that a family or person creates to
spend and save money.
A plan that sets a sum of money aside that is
needed for a given purpose (Dictionary.com, 2012).
It helps a person learn how much he or she is
spending and how much he or she is
saving.(Bernstein, 36).
7. Cost or charge, cause or occasion of spending
(Dictionary.com, 2012).
Expenses are the bills and other things that you
spend money on.
For example, the electric bill is an expense
In addition, Expenses can include going out to
eat
8. A payment received for goods or services or other
sources such as rent or investments (
Dictionary.com, 2012).
Your income is the money you earn or receive each
week, bi-weekly, monthly.
It includes interest from a checking or savings
account
Including interest from a second job, hobbies( items
sold from what you made as a
hobby, investments, and governmental supplement
income
9. A uniform or set rate of income per amount of time
(Dictionary.com, 2012).
Fixed income is an when a person has a set amount
that is earned or received weekly, monthly, bi-weekly
or monthly.
For example, a person who receives social security is
on a fixed income
10. Unexpected expenses are considered curveballs
because they are expenses you do not expect to
arise.
For example, your daughter is playing basketball and
she injuries her knee during a game.
The doctor bill and medication is an unexpected
expense
It is important to save money ( a rainy day fund) for
unexpected expenses
11. Of necessity, necessarily, a must
(Dictionary.com, 2012).
Needs are necessities, they are the expenses you
need to survive:
For example…Clothing, Food, & Laundry
Utilities ( gas, electric, water, food, & a
telephone)
Insurance: Car, home, renter’s insurance
Transportation
A home
12. To wish, crave, demand, or desire. An impulse (
Dictionary.com, 2012).
Wants are things that you do not need to
survive:
For example, movie rentals
Movie tickets
Hobby supplies
Going out to eat at a restaurant
Cable TV or Satellite TV
13. What is debt?
Something that is owned or one bound to
pay to another (Dictionary.com, 2012).
Debt is when a person owes money
For example a mortgage, car payment, or
credit cards
14.
15. There are 7 steps in creating a monthly budget
1. List all of your monthly needs
2. List of some of your wants
3. Write down your monthly income or fixed income
4. Add your total income if you have more than 1
income.
5. Add your needs and your wants together to view the
Total Expenses
6. Subtract the Total Expenses from your Total Income
7. The money left is your monthly savings ( place it in
your savings account!)
8. Adapte
16. Let’s Practice Steps 1-3!!!
Assignment 2 Class Guided Practice
Budgeting Practice
Handout 1: Needs & Wants
Handout 2: Needs & wants Example
Assignment : Needs & Wants
17. Remember our class discussion rules!
(5minutes/student!)
1. Why do you think a budget is important in
healthy family/personal financial planning?
2. What happens if we spend more than we earn?
3. How can we avoid overspending?
20. 1. What is a budget?
2. Why do we need a budget?
3. What is an expense?
4. What is a need?
5. What is a want?
6. How do we calculate monthly expenses &
weekly savings?
21. Step One:
Complete the GCF Learn Free- Pay Bills Money
Tutorial:
http://www.gcflearnfree.org/everydaylife/paybills
Step Two:
Write down the specific information you were
asked to locate in the Pay Bills game.
Answer this question:
Why is it important to read your bills and how does
paying bills relate to budgeting?
22. Step Three: Read the following websites:
http://smallnotebook.org/2008/09/30/your-family-
budget-step-by-step/
http://todaysfamilybudget.com/
http://www.mint.com/blog/how-to/create-personal-
budget-online-creating-an-emergency-fund/
http://financialplan.about.com/od/budgetingyourmoney/
ht/createbudget.htm
http://budgeting.thenest.com/preparing-personal-
household-budget-3309.html
Step Four: Complete the Budget Worksheet using the
Budget Worksheet Example & Instructions. Submit the
Assignment to your instructor at:
bspearman000@gmail.com for credit.
