Any good suggestions on teaching how to make a personal budget?
I am going to be teaching a class of high school students how to put together a personal budget. I am needing any kind of information that would help me be able to teach it to them. I’m going to do this over 2 class periods (1.5 hours each).
Will it be a weekly/monthly/annual budget? Pick 5-7 main categories that high school students might spend their money on or save for, such as vehicle gas and maintenance, clothing, movies, food, college, personal electronics, etc. Have them realistically estimate how much they spend on each given category in a week/month, then extrapolate how much they end up spending over a given month/year. Now, how much income does each student have, and how often. Have them extrapolate over the same time period as before.
If they are spending more than making, then they are "in the red" and will be in danger later of going bankrupt. If they are spending as much as they are making, then they are not saving for a future. If they are spending less than they are making, then they are "in the black" and should be making that extra money "work" for them. Sudden raises, birthday/holiday money, new jobs, etc. should not be taken into account as they are not stable.
You can even play a budgeting game, where you choose a fixed income, some mandatory (need) expenses, and some nonessential (want) expenses. Set certain guidelines for each expense, and see which student can budget the best without going "in the red" more than a certain number of times or at all.
I read this,so its not my thought. It seems that the wealthy truly live below their means. Most wealthy people prefer to spend the same amount that was their original budget. This levels out the ups and downs. I thought this is a point worth making.
References :
One of the most useful tools I’ve seen for developing a personal budget is simply carrying a pocket notepad and pen, and writing down every cent you spend and what you spent it on. Just the act of writing it down, and knowing you are going to write it down will cause you to think of your spending habits. At the end of a week, or month, you have a record of exactly where your money went. Armed with that knowledge, you can make decisions about what, if any, changes you would like to make.
References :
Will it be a weekly/monthly/annual budget? Pick 5-7 main categories that high school students might spend their money on or save for, such as vehicle gas and maintenance, clothing, movies, food, college, personal electronics, etc. Have them realistically estimate how much they spend on each given category in a week/month, then extrapolate how much they end up spending over a given month/year. Now, how much income does each student have, and how often. Have them extrapolate over the same time period as before.
If they are spending more than making, then they are "in the red" and will be in danger later of going bankrupt. If they are spending as much as they are making, then they are not saving for a future. If they are spending less than they are making, then they are "in the black" and should be making that extra money "work" for them. Sudden raises, birthday/holiday money, new jobs, etc. should not be taken into account as they are not stable.
You can even play a budgeting game, where you choose a fixed income, some mandatory (need) expenses, and some nonessential (want) expenses. Set certain guidelines for each expense, and see which student can budget the best without going "in the red" more than a certain number of times or at all.
References :