Budgeting Activity

Budgeting Activity - Transcript

MAKE MONEY MAKE SENSE
Budgeting Activity
Teaching aims of the session To recap on the concept of budgeting and money management To explain how to budget and explain how much things cost To explain to students the importance of money management and the possible consequences if money is not managed properly Possible teaching activity Learning outcomes

Suggested activities Debt case study Activity 1 see below How much does it cost This exercise is designed to give students an idea of how much things actually cost and the possible variations in price and quality This activity is intended as homework because the sources of information are mostly outside the school This can hopefully lead to discussion of costs with friends and family members The students report back their findings in an open discussion show evidence and compare results They can also discuss what they think are acceptable costs for various items Activity 2 see below Use the examples in the activity to complete an income and expenditure sheet and work out the person s disposable income You can use either the income and expenditure calculation sheet or a spreadsheet Brainstorm class work pair work or home work Suggested handouts Use the list of possible expenditure Tips for budgeting Budgeting quiz

Students will be able to identify all of the different expenditures that may need to be incurred Students will understand the difference between essential spending and non essential spending Students will understand the importance of budgeting and the potential consequences of not

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MAKE MONEY MAKE SENSE
Budgeting Activity 1 How much does it cost This exercise is designed to give students an idea of how much things actually cost and the possible variations in price and quality It is intended as homework because the sources of information are mostly outside the school This can hopefully lead to discussion of costs with friends and family members The students report back their findings in an open discussion show evidence and compare results They can also discuss what they think are acceptable costs for various items A list of goods and services is attached and the idea is for the students to research the subjects and find the answers to each point They also need to provide evidence to support their find To most of the questions there are numerous possible answers as long as they have some source of evidence to support their find This should also highlight the difference in prices which students find for the same items and this can be used as source of discussion What influences people s choices of spending when faced with varying prices Possible sources of information include The internet Local newspapers and publications Friends and family Personal experience Catalogues Visits to local shops

Some items are set quantities and recommended sources of information are given Council Tax http www eastbourne gov uk your home council tax how much asp Car tax http www dvla gov uk vehicles taxation htm MOT http www vosa gov uk vosa carlgvowners mottesting mottestfees htm

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MAKE MONEY MAKE SENSE
How much do things cost Housing 1 2 3 4 5 6 7 8 rent mortgage council tax insurance buildings or contents water and sewerage rates electricity gas phone

Food for each item decide how many people 1 weekly shopping 2 a take away meal 3 a restaurant meal 4 a round of drinks Cars 1 2 3 4 5 6 7 Travel 1 2 3 Car tax annual amount Petrol weekly Insurance annual amount M O T Repairs Servicing Parking Bus fare Taxi Train ticket

Entertainment 1 Concert tickets 2 Tickets for a play 3 Cinema tickets 4 A CD album 5 A DVD 6 A video game 7 A night out with friends Household goods 1 A TV and DVD player 2 A Hi fi music system 3 A 3 piece suite 4 A dining table and chairs 5 A bed

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MAKE MONEY MAKE SENSE
Budgeting Activity 2 Budgeting case studies For each of the following examples complete an income and expenditure sheet and work out the person s disposable income You can use either the income and expenditure calculation sheet or spreadsheet 1 A single man living alone in a rented flat He works 37 hours a week and earns 900 a month His monthly expenses are Rent 200 Prescriptions 20 Council Tax 100 Clothes 30 Water rates 10 TV License 10 Sewerage Rates 10 Travel 50 Food Household items 170 Telephone 40 Electricity 20 Newspapers 10 Gas 20 2 A husband and wife and two children under 16 He lost his job through ill health and his wife looks after him and the children They receive 598 Income Support 564 Child Tax Credit and 164 Child Benefit each month Rent and Council Tax are paid by benefits They have the following monthly expenses Water rates 15 Sewerage 11 Food Household items 785 Electricity 60 Gas 60 Home Insurance 15 Health costs 30 Clothes 130 Pets 25 TV License 10 Travel 75 Car Insurance 15 Breakdown Cover 10 Car Tax 15 Telephone 30 Newspapers 10 Nappies 30

3 A single man lives with his son and was recently made redundant He is receiving job Seeker s Allowance of 240 a month His monthly expenses are Rent 120 Food Household 50 Health 5 Clothes 5 Travel 30 Telephone 20 Newspapers 10

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MAKE MONEY MAKE SENSE

Budgeting case studies continued 4 A single woman earning 1040 per month Expenses Rent 433 33 Food Household 45 Prescriptions 10 Clothes 20 Travel 150 Car Insurance 34 66 Car Tax 9 58 Telephone 20 Newspapers 7 50 Hire Purchase Car 171 87

Created 25 08 05