Money Matters Warm-Up

Take a moment to think about money and your future.

1. If you could magically have any job after high school, what would it be? (Think about what you enjoy and what skills you have!)
   
   
   
   
2. What is one big purchase you dream of making in your future (e.g., a car, a house, a trip)?
   
   
   
   
3. Why do you think it's important to think about how you manage your money, even now?
   
   
   
   

Income Scenario Cards

Instructions: Cut out these cards and distribute one to each student or pair.

Card 1: Entry-Level Retail Worker

Monthly Income: $2,500 (after taxes)
Life Situation: Lives in a moderately affordable city, rents a small apartment, drives an older car.
Challenge: How will you balance your necessities with a desire for some fun and savings?

Card 2: Experienced Trade Professional

Monthly Income: $4,500 (after taxes)
Life Situation: Lives in a suburban area, might consider buying a modest home in the future, has a reliable car.
Challenge: You have more flexibility, but also more opportunities for larger expenses or greater savings. How will you prioritize?

Card 3: New Graduate - Office Job

Monthly Income: $3,500 (after taxes)
Life Situation: Lives in a city, rents a room in a shared apartment, relies on public transportation or rideshare.
Challenge: City living can be expensive! How will you make your income stretch while enjoying city life?

Card 4: Freelance Creative (Fluctuating Income)

Monthly Income: $3,000 (after taxes, but can vary by +/- $500 each month)
Life Situation: Works from home, lives with roommates to save money, uses public transport.
Challenge: How do you budget when your income isn't always the same? How much should you set aside for lean months?

Card 5: Healthcare Assistant

Monthly Income: $3,800 (after taxes)
Life Situation: Works shifts, lives in a quiet town, owns a small, efficient car.
Challenge: You have a steady income, but also potential for unexpected expenses like car maintenance or continuing education. How do you plan for both routine and unforeseen costs?

Card 6: Restaurant Manager

Monthly Income: $4,200 (after taxes)
Life Situation: Lives in a mid-sized city, rents a decent apartment, has a car payment.
Challenge: You have a good income, but also a lifestyle that might include dining out or social activities. How do you ensure your spending aligns with your financial goals?

Budget Builder Worksheet

Name: ________________________
Income Scenario: ________________________

Monthly Income (after taxes): $________________________

Part 1: Your Monthly Budget Plan

Fill in the estimated costs for each category. Remember the 50/30/20 rule (50% Needs, 30% Wants, 20% Savings/Debt) as a guide, but adapt it to your scenario!

A. Needs (Approx. 50% of Income)

• Housing (Rent/Mortgage):
  
  
  
  
• Utilities (Electricity, Water, Internet, Heat):
  
  
  
  
• Groceries:
  
  
  
  
• Transportation (Car Payment, Gas, Public Transport, Insurance):
  
  
  
  
• Health Insurance/Medical Expenses:
  
  
  
  
• Other Essential Needs:
  
  
  
  
  Total Needs: $________________________

B. Wants (Approx. 30% of Income)

• Dining Out/Takeout:
  
  
  
  
• Entertainment (Movies, Concerts, Streaming Services):
  
  
  
  
• Shopping (Clothes, Gadgets, Hobbies):
  
  
  
  
• Travel/Vacations:
  
  
  
  
• Other Discretionary Spending:
  
  
  
  
  Total Wants: $________________________

C. Savings & Debt Repayment (Approx. 20% of Income)

• Emergency Fund Savings:
  
  
  
  
• Retirement Savings:
  
  
  
  
• Debt Repayment (Student Loans, Credit Card Debt):
  
  
  
  
• Long-Term Goals (e.g., Down Payment for House):
  
  
  
  
  Total Savings & Debt: $________________________

Part 2: Budget Summary

Total Monthly Income: $________________________
Total Monthly Expenses (Needs + Wants + Savings/Debt): $________________________

Remaining Income (Income - Total Expenses): $________________________

(This amount should ideally be $0 or a positive number, meaning your budget is balanced or you have extra to save!)

Part 3: Reflection Questions

1. What was the most challenging part of creating your budget, and why?
   
   
   
   
   
   
   
2. What surprised you the most about budgeting with your assigned income?
   
   
   
   
   
   
   
3. If you had to cut down on expenses, which category would you look at first (Needs, Wants, or Savings/Debt) and why?
   
   
   
   
   
   
   

Cost Reference Sheet (Estimated Monthly Costs)

Note to Students: For this exercise, use the single estimated cost provided for each category. These costs can vary greatly depending on location and lifestyle, but the ranges are provided for your general knowledge.

Housing

• Small Apartment (Studio/1-Bedroom) in moderately affordable city: $1,000 (Range: $800 - $1,200)
• Room in a Shared Apartment/House (City): $750 (Range: $600 - $900)
• Modest Home/Townhouse (Suburban/Quiet Town): $1,500 (Range: $1,200 - $1,800)

Utilities

• Electricity: $100 (Range: $50 - $150)
• Water/Sewer/Trash: $60 (Range: $40 - $80)
• Internet: $65 (Range: $50 - $80)
• Heat/Gas: $70 (Range: $40 - $100)
• Cell Phone Plan: $55 (Range: $40 - $70)

Transportation

• Car Payment: $300 (Range: $200 - $400)
• Car Insurance: $175 (Range: $100 - $250)
• Gas: $200 (Range: $100 - $300)
• Public Transportation Pass: $90 (Range: $60 - $120)
• Ride-share (occasional): $50 (Range: $30 - $80)

Food

• Groceries (Cooking at home): $400 (Range: $300 - $500)
• Dining Out/Takeout (Discretionary): $150 (Range: $50 - $300)

Health & Personal Care

• Health Insurance (if not employer-provided/covered): $225 (Range: $150 - $300)
• Personal Care Items (Toiletries, Haircuts, etc.): $60 (Range: $40 - $80)

Discretionary (Wants)

• Entertainment (Streaming, Movies, Concerts, Hobbies): $125 (Range: $50 - $200)
• Shopping (Clothes, Gadgets): $100 (Range: $50 - $150)
• Gym Membership: $40 (Range: $20 - $60)
• Subscriptions (other): $20 (Range: $10 - $30)

Savings & Debt

• Emergency Fund: Recommended to start with $100-$200 monthly (Range: $50 - $300)
• Student Loan Payment: $150 (Range: $0 - $300+)
• Credit Card Debt Payment: (Prioritize paying this down quickly - varies)
• Retirement Savings: Recommended to start with $75-$150 monthly (Range: $50 - $250+)

Budget Answer Key

Note to Teacher: This answer key provides example responses and reasonable ranges for expenses. Actual student budgets will vary based on their assumptions and interpretations of their scenarios. Encourage discussion around different choices and their justifications.

General Guidelines for Evaluating Budgets:

• Balance: Does the total expenses (Needs + Wants + Savings/Debt) roughly equal the monthly income? A balanced budget (where Remaining Income is $0 or positive) is the goal.
• Realistic Estimates: Are the expense amounts generally realistic for the given income and scenario (e.g., rent not exceeding 30-40% of income, groceries reasonable)?
• 50/30/20 Rule Application: While a guideline, observe if students attempted to align with it. Discuss why deviations might be necessary or strategic for their scenario.
• Needs vs. Wants Distinction: Do students correctly categorize essential needs versus discretionary wants?
• Inclusion of Savings/Debt: Is there an allocation for savings or debt repayment, even if small?

Example Responses & Discussion Points for Scenarios:

Scenario 1: Entry-Level Retail Worker (Monthly Income: $2,500)

• Needs (approx. $1250): Rent ($800-1000 for small apt), Utilities ($150-200), Groceries ($300-400), Transportation ($150-250 for older car insurance/gas).
• Wants (approx. $750): Likely very tight. Dining out ($50-100), Entertainment ($50-100), Personal Care/Shopping ($50-100).
• Savings/Debt (approx. $500): Crucial to save for emergencies. Maybe $100-200 for an emergency fund, $0-100 for debt.
• Discussion: This budget will be tight. Students will need to make tough choices and prioritize. Emphasize the importance of an emergency fund on a lower income.

Scenario 2: Experienced Trade Professional (Monthly Income: $4,500)

• Needs (approx. $2250): Rent/Mortgage ($1200-1800), Utilities ($200-300), Groceries ($400-500), Transportation ($200-350).
• Wants (approx. $1350): More room here. Dining out ($200-300), Entertainment ($150-250), Shopping ($100-200), Hobbies ($100).
• Savings/Debt (approx. $900): Significant opportunity for savings (emergency, retirement, home down payment) or aggressive debt repayment.
• Discussion: Students should show responsible allocation towards future goals. Could discuss the benefits of increasing savings over wants even with higher income.

Scenario 3: New Graduate - Office Job (Monthly Income: $3,500)

• Needs (approx. $1750): Rent (room in shared apt $700-1000), Utilities ($100-150), Groceries ($300-400), Transportation (public/rideshare $100-200).
• Wants (approx. $1050): City entertainment can be costly. Dining out ($150-250), Entertainment ($100-200), Social ($100-150).
• Savings/Debt (approx. $700): Important to start student loan repayment or build savings.
• Discussion: Highlight balancing city living costs with financial responsibility. The

Budget Battle Cool-Down

Now that you've tackled the budget challenge, take a moment to reflect.

1. What is one new thing you learned about managing money today?
   
   
   
   
2. How might the skill of budgeting help you in your own life in the future?
   
   
   
   
3. If you had to give one piece of advice to a friend about budgeting, what would it be?