Minds On

Short-term goals

Student Success

Think-Pair-Share

A transit employee was ready to move into their first apartment. With a partner, if possible, explore the following question prompts:

  • What are some things they might want to save up for to buy?
  • What are some expenses that the employee will have with a new apartment?
  • How will they earn money and save?
  • What can impact their savings?
  • How will they determine the difference between their needs and wants?

Note to teachers: See your teacher guide for collaboration tools, ideas and suggestions.

Budget review

A bunch of piggy banks resting on stacks of coins, each stack with more coins than the last

Let’s review what we learned in the previous lesson.

  • Creating a budget means keeping track of how much money is coming in (earnings) and how much money is going out (expenses)
  • The goal of budgeting is to never spend more money than a person earns. That means earnings minus expenses should be zero or a positive number
  • If someone is spending more money than they earn, they will go into debt. If they spend less money than they earn, they can build up their savings. The more money they save, the closer they get to reaching a financial goal

Action

Budget scenario

Work independently or with a partner, if possible, and consider the following scenario:

A video store employee would like to purchase a new set of video games. The set they want to buy is $100.00. The employee earns $5.00 per week.

  • How long will it take for the video store employee to save up enough money to purchase the item?

Create a T-chart or other organizer (with the headings of earnings and expenses) and come up with a budgeting plan to save for the item.

What important information is not known about this video store employee? How will that impact your ability to make an effective budget?

Complete the Earning and Expenses Chart in your notebook or by using the following fillable and printable document.

Earning and Expenses Chart
Earnings per month Expenses per month






Press the ‘Activity’ button to access the Earning and Expenses Chart.

Explore each the following questions below. Choose 2 questions that you would like to respond to. Record your responses on paper, on the computer, on an audio recording, or in an organized way that you would prefer.

  • If you put everything into savings, how long will it take for them to save up for the new games?
  • What are some things the video store employee might need to sacrifice in an aggressive savings plan?
  • If they put a percentage of allowance into savings, how long will it take for the video store employee to save up for the item?
  • What is the difference between a need and a want?
  • What barriers might they face in reaching their financial goal? Think about the three types of expenses (fixed expenses, variable expenses, unplanned expenses).

Consolidation

Putting together a budget plan

In this activity, you are going to create a scenario for someone who would like to save to purchase an item. You will then create a budget plan for that person to determine how they will be able to purchase that item, based on their earnings and different types of expenses.

You can choose from a list of options (or create a scenario of your own) to create a budget plan to save for a short-term financial goal.

In the chart below are options for the different categories. Pick and choose any that you would like.

Complete the Earnings and Expenses T Chart in your notebook or using the following fillable and printable document to list the facts we know about your person. Find a creative way to record your budgeting plan.

Options of items to buy
Computer $1,300.00
New couch $900.00
Electronic of your choice $500.00
Options of monthly earnings
Restaurant employee $ 1,200.00 per month
Babysitter $200.00 per month
Grocery store employee $1,000.00 per month
Tutor $350.00 per month
Options of some fixed expenses per month
Rent $600.00 per month
Income tax 10%
Water bill $60.00 per month
Hydro bill $80.00 per month
Phone plan $50.00 per month
Variable expense per month
Groceries $175.00 per month
Restaurant food $40.00 per month
Shopping $100.00 per month
Public transit $30.00 per month
Unplanned expense per month
Repairs $30.00
Sprained ankle $30.00 (for bandages)
Train ticket to visit $95.00
Earning and Expenses T-Chart
Income (earnings)
Fixed expenses per month (rent, mortgage, bills)

Variable expenses per month (food, shopping, travel)

Unplanned expenses per month (emergencies, repairs/ replacements)

Press the ‘Activity’ button to access the Earning and Expenses T-Chart.

Reflection

As you read through these descriptions, which sentence best describes how you are feeling about your understanding of this learning activity? Press the button that is beside this sentence.

I feel...

Now, record your ideas using a voice recorder, speech-to-text, or writing tool.

Press ‘Discover More’ to extend your skills.

Now that you have finished gathering information about typical expenses in a month, you will:

  • Research a career of your choice.
  • Find out the average income for someone who works in that profession and subtract 30% income tax. The net income is the amount you earn per year.
  • Divide the net income by 12 months to get the earnings per month.

Create a healthy budget plan for an individual in their chosen profession who wants to purchase a new TV by the end of the year. In your healthy budget plan, make sure it includes the following criteria:

  • detailed list of earnings and expenses per month, up to one year
  • find the sum of earnings and sum of expenses per month, up to one year
  • carry over any savings from the previous month to the next month
  • calculate the amount of money saved by the end of the year