Lesson 2.9, two days, 21 slides (slides 1 to 11 on Day 1, 12 to 21 on Day 2). All prices marked [update].
Do now (Day 1)
- Guess: how much money passed through your hands in the last seven days?
- Write the number.
- List what it went to.
Teacher notes
Hand vote on ranges: under $10, $10 to $25, $25 to $50, over $50.
Where did Alex's $40 go?
- $40 a month. Gone every month. Nothing big to show for it.
- His mom made him write everything down for one week.
- Snacks Monday $2. A game Wednesday $3. Coffee Friday $1.50.
- $12 in a week. On nothing he could remember.
Teacher notes
Image: a crumpled receipt pile on a kitchen table.
What a budget is
- A plan for income and expenses over a set time, usually a month.
- It tells your money where to go before it leaves.
- Income on a budget is net. Not gross. (Lesson 2.8)
- Copy the definition.
Two kinds of expenses
- Fixed: the same every month, and skipping it has a consequence. Phone plan. Bus pass. A subscription until you cancel it.
- Variable: it changes, and you control it. Food out. Clothes. Games. Gifts.
- Sort the ten on your sheet, Part A.
Teacher notes
Do the first three together, then let them finish.
The 50/30/20 guide
- Adults: 50 percent of net to needs. 30 percent to wants. 20 percent to savings.
- On $100: $50, $30, $20.
- It is a guide, not a law.
Teacher notes
Image: a bar split into three colored blocks, 50, 30, 20.
At your scale, the order matters more
- Save first. At least 20 percent.
- Cover fixed needs next.
- Wants get what is left.
- Your savings line is your SMART goal from Lesson 2.4, divided by the months you have.
- Practice: 20, 50, and 30 percent of $140.
Your next seven days
- Part B. Every dollar you expect to get. Every dollar you expect to spend.
- Real prices. A day for each line.
- Total in. Total out. Balance.
- 14 minutes.
The twelve-dollar question
- Circle every "out" line that is a want under $5.
- Add them. That is your Alex number.
- Times 4 for a month. Times 12 for a year.
Teacher notes
Put three students' numbers on the board.
What you found
- [three students' weekly small-want totals, times 4]
- Nobody feels a $3 snack. Everybody feels $144 a year.
Teacher notes
Fill in live.
Think about it
- If your income stays the same and your expenses go up, what happens to savings?
- Name two fixes.
Exit line (Day 1)
- 3 expenses you estimated this week
- 2 that are fixed
- 1 number: your small wants for a month
- Tomorrow: a real month, a real income, real Long Island prices.
Do now (Day 2)
- Fixed or variable? Phone plan. Pizza on Friday. Bus pass. A birthday gift. Streaming.
- Write F or V next to each.
Teacher notes
Choral check: F, V, F, V, F.
You are about to be someone else
- One scenario card. A job or an allowance. A goal.
- Build their month on the Budget Builder.
- Save first. Fixed next. Wants with what is left.
Teacher notes
Image: four index cards fanned out, each with a first name and an age.
Model: Mateo, income
- Net income: $60 allowance plus $40 dog walking = $100.
- Nobody takes taxes out of an allowance. Net equals gross here.
Model: Mateo, savings first
- Goal: concert ticket, $120 [update], in four months.
- $120 divided by 4 = $30 a month.
- $100 minus $30 = $70 left for everything else.
- The savings line is written before any expense.
Model: Mateo, fixed
- Streaming share $5 [update]. Lunch account $35 [update].
- Total fixed: $40.
- $70 minus $40 = $30 left for wants.
- Now his usual wants cost $75. Something has to go. That part is yours.
Build the month
- Income. Savings first. Fixed. Variable. Bottom line.
- Bottom line must be zero or above.
- Cut wants. Never savings. Never a fixed need.
- Then Part D: the percents and one revision.
- 20 minutes.
Three questions at your desk
- Did you save first?
- Does every fixed line have a number?
- Is the bottom line zero or above?
Pair check
- Swap Builders. Read the card, then the budget.
- Three yes or no questions. Sign it.
- One sentence of advice. Return it.
- 6 minutes.
Where this goes
- This budget comes back in Project 02.
- After the ClassroomStreet challenge you rewrite it with what you learned.
- The rewrite is part of your project grade.
- Keep it in your FACS folder.
Exit card (Day 2)
- One thing you would change about this person's spending.
- One line of your own budget you now want to write.
- Tomorrow: you have the money. How do you hand it over? Cash, check, card, phone.