Lesson 2: Creating a Budget for Your Life
Secondary, Unit 2: All about Banking, Lesson 2

Lesson 2: Creating a Budget for Your Life

Learning Objective:

Students will be able to create a budget for their life and determine the amount of money they can save each month based on their expenses. 

Jump$tart Standard: Spending: 

8-1b. Create a budget that includes expenses and savings out of a given amount of income
12-1b .   Develop a budget to allocate current income to necessary and desired spending, including estimates for both fixed and variable expenses .

SEL Competency: Responsible decision-making

Pre-work:

Brain Dump (5 min)

Write this on the board: List as many things as you can think of that cost money—in other words, expenses. 

Say: Write down as many different expenses as you can think of. 

Think. Pair. Share.

Video (5 min)

Say: Now, let’s watch this budget overview video. We’re going to watch it twice. 

https://www.youtube.com/watch?v=s6Htt17bNcM

After watching the video, ask: What have you heard or learned about budgets in the past?

Explanation (5 min)

Say: Today you will determine your monthly expenses. Since the future is unknown, you’ll use a dice to determine some aspects of your life; for example, you’ll roll the dice to find out if you’ll have pets and kids. We will fill out a budgeting sheet and determine how much money you would theoretically be able to save each month, given your expenses. You may have already done that in this class if you have a job that requires a higher education, because you are paying a monthly loan payment on it. However, most people have more than two or three monthly expenses—so let’s dive in! 

Pass out or distribute budgeting worksheet.

Say: Look at the worksheet. Put a little star, smiley face, or bullet point next to the expenses you wrote down during the brain dump that are also on the budget sheet. 

Ask: Who found an expense you wrote down during the brain dump that’s also on the budget worksheet? (Have students share out.) 

Say: Now, you are going to fill out the Stash101 Budgeting Questionnaire, which will tell you what kind of life circumstances you have (i.e., pets, kids, insurance, etc.). Some of you will have a smaller budget than others. Everyone will have to fill out the budget worksheet to figure out your expenses and savings each month.

Activity/Work (25 min)

Distribute the Stash101 Budgeting Questionnaire. Students tend to really get into this! It’s a fun activity during which they get to see how they are going to make ends meet if they have 5 kids, student loans, a mortgage, etc.

Model the following for students: filling out the information, rolling the dice when directed, and transferring the information to the budgeting worksheet. 

After students complete the questionnaire, have them transfer their expenses onto the budgeting worksheet. Model how they would subtract their expenses from their income to get their total monthly savings.

Exit Ticket (5 min)

Have students write their name on an index card or sticky note and then list the two highest and two lowest expenses from their budget worksheet. Tell them that these four bills will be added to their Stash101 profile, and they will have to pay them on a monthly basis. Give these index cards or sticky notes to the class banker to add to each student’s profile—or do any variation on this to automatically deduct money from their paychecks. Note that the banker may have to add the bills from your teacher account.