F1.3 Identify different ways to maintain a balanced budget, and use appropriate tools to track all income and spending, for several different scenarios.
Activity 1: Identify Different Ways to Maintain a Balanced Budget
Present to the students the following classroom budget for a long-term goal to maintain the garden at the school.
| Classroom Budget Long-Term Financial Goal: Maintenance of the Garden In the School’s Backyard |
|
|---|---|
| Income | |
| Fundraising (Coffee sales) | $368 |
| Fundraising (bake sale) | $154 |
| Donation – local hardware store | $50 |
| Donation – community nursery | $100 |
| Total Income | $672 |
| Fixed Expenses | |
| Products for garden maintenance | $50 |
| Variable Expenses | |
| Rainwater harvesting barrel | $150 |
| Tomato plants | $80 |
| Bell pepper plants | $50 |
| Bean plants | $75 |
| Herbs | $50 |
| Watermelon seeds | $12 |
| Pumpkin seeds | $11 |
| Cantaloupe plants | $46 |
| Cucumber plants | $58 |
| Compost | $78 |
| Potting soil | $132 |
| Total Expenses | $792 |
| Difference Between Income and Expenses | -$120 |
Ask students the following questions:
- Does the above budget balance? How do you know?
- What could you do to keep this budget balanced? How would you do it? Why would you make these decisions?
Activity 2: Use an Appropriate Tool to Develop and Maintain a Balanced Budget
Present the following scenario to students:
Kyän needs to prepare his monthly budget and has set a financial goal of having a balanced budget. Here are the income and expenses he expects:
- Lawn mowing income of $72
- Pet sitting income of $32
- Cell phone fee of $47
- Charges associated with apps on his cell phone of $17
- Outing with friends at a restaurant near the school for $33
- Outing at the bowling alley for $23
- Trip to the water park for $49
Have students use an appropriate tool to create Kyän's monthly budget with the above data.
Then ask students the following questions:
- Will Kyän achieve his financial goal of a balanced budget? Explain your reasoning.
- What could he do to create and maintain a balanced budget? What decisions would you make if you were in his situation? Why?
Source: adapted and translated from En avant, les maths!, 7e année, CM, Littératie financière, p. 3