F1.3 Create, track, and adjust sample budgets designed to meet longer-term financial goals for various scenarios.
Activity 1: Creating a Budget
To replenish the community's food bank, a group of students decide to hold two fundraising events to purchase non-perishable food items and personal care products. The students raise $196 in the first event and $389 in the second event. Knowing that there should be no money left over at the end of the event and that there are no fixed expenses, create a budget to replenish the community's food bank. Have students make their predictions and then calculate the actual amounts using the weekly flyers.
Activity 2: Adjusting a Budget
Present students with the following situation:
Fanni has created her budget for March, but unfortunately she just received an email saying that there will be a $3 increase in her monthly subscription to her music app for her phone, starting next month.
Fanni's March Budget
|
Revenues |
|
|
Dog-sitting for my neighbour |
$70 |
|
Household chores for my grandparents |
$80 |
|
Total: |
$150 |
|
Fixed Expenses |
|
|
Cell phone |
$65 |
|
Subscription to a music application |
$15 |
|
Lunch at school |
$35 |
|
Total: |
$115 |
|
Variable Expenses |
|
|
Outing to the amusement park |
$20 |
|
Convenience store outing |
$15 |
|
Total: |
$35 |
|
Balance |
$0 |
Ask students the following questions:
- What changes could she make to her budget, knowing that she wants to maintain a balanced budget (revenues exceed expenses)?
- How could she achieve her goal? Explain your reasoning.