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Course, Subject

Social Studies, Social Studies

Lesson Objectives

Students will understand the importance of identifying fixed, variable, and discretionary income and expenses by creating a personal budget.

Duration

55-65 minutes: 20 minutes to introduce the topic, 20-30 minutes for completion of worksheet, and 15 minutes for class discussion

Description

Working individually, students establish a personalized monthly budget based on their anticipated future income levels. Students often mistakenly assume that budgeting is a rigid, painful process. The activities in this lesson emphasize that budgeting should be an ongoing, flexible process, guided by each individual's personal goals and priorities.

This lesson is one part of a larger unit, Independent Living. While completing this unit, students will learn about: landlord and tenant rights and responsibilities; deciphering rental and leasing agreements; costs of establishing a first residence; benefits of budgeting; major categories of living expenses; surviving and thriving with roommates.

Consumer Jungle units are designed to be flexible, and can be used as one integrated unit or individual segments. If you are planning to use the unit in its entirety, please see the Related Content field for the additional lessons. The End of Unit Assessment field contains links to the vocabulary, concept, and content quizzes for the unit.

Materials

• Copies of the Budget Basics student worksheet
• Budgeting PowerPoint

Step-by-Step Procedure

1. Ask students to brainstorm the benefits of budgeting.
2. Have students brainstorm the major components of a typical budget. Record on the board. (Note: Students will have brainstormed an approximate version of the handout Budget Basics)
3. Pass out the Budget Basics student worksheet and have students complete the worksheet in class.
   Using the worksheet, students will:

• Estimate their approximate income level when they move out on their own. Note: This should be based on the student's anticipated level of education.
• Estimate amounts for each of the budget items listed. Note: At this stage in the unit, students' estimates will likely be unrealistic.

4. Discuss the budgets and give feedback on realistic and unrealistic budgets in addition to categories of spending that are out of balance with the entire budget.
5. Allow time for students to revise their budgets.
6. Discuss with the class the benefits of creating this budget and their thoughts/reactions to the budget they created.

Related Content

• Surviving Solo Wisdom
• A Place to Hang Your Hat
• It Costs How Much!?!?
• Reality Check
• Rental Agreement Lingo
• Surviving or Thriving with Roommates
• TV Roommates

End of Unit Assessment

Students can take the vocabulary and concept quizzes via pen and paper.

Downloads:

• Independent Living Vocab Quiz
• Independent Living Concept Quiz

Content Provider

Consumer Jungle is dedicated to providing young adults with the life skills they need to become responsible, informed consumers. Consumer Jungle provides engaging and relevant consumer education curricula covering a variety of topics such as credit cards, transportation, living on your own, personal finances, telecommunications, health, and e-commerce fraud. Developed with input from teachers, students, and parents, Consumer Jungle delivers interactive games, activities, and relevant information directly to the home or classroom.

Website(s)

• Consumer Jungle -http://www.consumerjungle.org

Related Academic Standards

New York State

SS.SSP.9-12.5.1 Use marginal benefits and marginal costs to construct an argument for or against an approach or solution to an economic issue.

HPF.FC.C.2.1.C Students understand essential requirements for selecting and maintaining a home.

HPF.FC.C.3.1 Students will understand and be able to manage personal resources of talent, time, energy, and money and make effective decisions in order to balance their obligations to work, family, and self. They will nurture and support positive relationships in their homes, workplaces, and communities. They will develop and use their abilities to contribute to society through pursuit of a career and commitment to long-range planning for their personal, professional, and academic futures. They will know and access community resources.

HPF.FC.C.3.1.A Students analyze a wide range of factors related to managing personal resources to balance obligations to work, family, and self.

HPF.FC.C.3.1.B Students understand the basics of an individual/family budget and plan to obtain, use, and protect money and assets.

SS.C.4.1B Students define and apply basic economic concepts such as scarcity, supply/demand, opportunity costs, production, resources, money and banking, economic growth, markets, costs, competition, and world economic systems.