Budget Boss: Next Level! Script

Warm-Up: Budget Brainstorm (5 minutes)

"Good morning, future financial gurus! Last time, we started our journey to becoming 'Budget Bosses,' learning the basics of managing our money. Today, we're taking it up a notch. We're going to dive into 'Budget Boss: Next Level!'"

"Before we jump in, let's do a quick recap. What are some of the basic money concepts we talked about last time? Think about income and expenses."

"Great reminders! Now, let's think bigger. As you get older, what are some new financial goals or challenges you might face that go beyond just buying a snack or a new game? What are some things you might want to save up for in the next few years, or even unexpected things that could pop up?"

"Excellent ideas! It sounds like you're already thinking ahead. Today, we're going to explore how to plan for those bigger goals and unexpected moments."

Exploring Advanced Concepts (10 minutes)

"Let's open our minds to some 'next level' budgeting concepts. I have a few slides here to guide us through some important ideas that will make you even savvier with your money."

(Advance to Slide 2: Fixed vs. Variable: A Deeper Dive)

"We briefly touched on fixed and variable expenses before. Can someone remind us what a fixed expense is? How about a variable expense?"

"Spot on! Fixed expenses are pretty consistent, like your phone bill or a streaming service subscription. Variable expenses change, like how much you spend on snacks or going out with friends. Why do you think it's even more important to know the difference between fixed and variable expenses when you're planning for bigger financial goals, like saving for college or a car?"

(Advance to Slide 3: Saving for Your Dreams & Rainy Days)

"Now, let's talk about saving for something exciting, like your dream car, a trip, or even college. These are what we call savings goals. But what about the unexpected? What if your phone breaks, or you have an unexpected medical expense? That's where an emergency fund comes in. It's money saved specifically for those 'just in case' moments."

"Why do you think having an emergency fund is so crucial, even if you're a teenager? What kind of peace of mind does it offer?"

(Advance to Slide 4: Making Your Money Work for You!)

"This next concept is really cool: making your money work for you. Has anyone ever heard of interest when it comes to money?"

"That's right! Interest is essentially money that a bank pays you for keeping your money with them. It's a small reward for saving! We're not going deep into complex investments today, but it's good to know that a simple savings account is a great way to safely keep your money and watch it grow a little bit over time through interest."

"How does the idea of your money earning more money on its own sound to you? What kind of future possibilities does that open up?"

Advanced Budgeting Challenge (10 minutes)

(Advance to Slide 5: Your Next Level Challenge!)

"Alright, Budget Bosses, it's time for your next mission! I'm handing out the Advanced Budgeting Challenge Worksheet. On this worksheet, you'll find a new scenario. It's a bit more complex than what we did last time, and it will require you to use our 'next level' concepts like identifying new fixed and variable expenses, planning for savings goals, and thinking about an emergency fund."

"You can work on this individually or with a partner. Read the scenario carefully, and then apply what we've discussed today to create a solid budget. I'll be walking around to help if you have any questions. You have about 10 minutes for this challenge. Go!"

(Circulate around the room, providing support and answering questions.)

Share & Reflect (5 minutes)

(Advance to Slide 6: Share Your Strategies!)

"Alright, let's bring it back together. I saw some fantastic budgeting brains at work! Who would like to share one interesting aspect of their advanced budget or a strategy they used to tackle the challenge?"

"Those are some really insightful approaches! What was one new budgeting idea you learned today that you think will be most important for your future? Why?"

"Thank you for sharing, everyone! Remember, being a 'Budget Boss' isn't just about managing money now; it's about building habits that will help you achieve your dreams and navigate life's unexpected turns. Keep thinking about how these skills can empower your future!"

Advanced Budgeting Challenge: The Teenpreneur

Scenario: You are a 9th-grade student who has started a successful small online business selling handmade custom phone cases. You earn an average of $200 per month. You also receive a $50 monthly allowance from your parents.

However, you have some new goals and responsibilities:

• You want to save $500 for a new gaming console by the end of 5 months.
• You want to contribute $20 per month to a college savings fund.
• You need to buy supplies for your business, which cost around $40 per month (this can vary slightly).
• Your phone bill (which your parents used to cover entirely) is now partially your responsibility: $25 per month.
• You have a streaming service subscription that costs $10 per month.
• You love going out with friends, which typically costs you about $30-$50 per month.
• You want to start an emergency fund for unexpected events, aiming for $100 saved in total.

Your Task: Create a monthly budget that helps you manage your money, save for your goals, and cover your responsibilities. Use the categories below to organize your budget. Don't forget to account for both fixed and variable expenses, and include your savings goals!

Monthly Income

1. Business Earnings (Average):
   
   
   
2. Allowance:
   
   
   
3. Total Monthly Income:
   
   
   

Monthly Expenses

Fixed Expenses (Expenses that stay the same each month)

4. Phone Bill Contribution:
   
   
   
5. Streaming Service Subscription:
   
   
   
6. College Savings Contribution:
   
   
   
7. Total Fixed Expenses:
   
   
   

Variable Expenses (Expenses that can change each month)

8. Business Supplies:
   
   
   
9. Going Out with Friends/Entertainment:
   
   
   
10. Other Variable Expenses (if any):
    
    
    
11. Total Variable Expenses:
    
    
    

Savings Goals

12. Gaming Console Savings (Monthly contribution needed to reach $500 in 5 months):
    
    
    
13. Emergency Fund (Monthly contribution needed to reach $100 total - decide how many months you want to take):
    
    
    
14. Total Monthly Savings Contribution:
    
    
    

Summary

15. Total Income:
    
    
    
16. Total Expenses (Fixed + Variable):
    
    
    
17. Total Savings Contribution:
    
    
    
18. Remaining Money (Income - Expenses - Savings):
    
    
    

Reflection Questions:

19. What was the most challenging part of creating this budget, and why?
    
    
    
    
    
    

20. If you found that your expenses and savings were more than your income, what are two ways you could adjust your budget to balance it?
    
    
    
    
    
    

21. How might creating an emergency fund help you in a real-life situation? Provide an example.
    
    
    
    
    
    

22. Why is it important to consider both short-term (like the gaming console) and long-term (like college savings) financial goals when budgeting?
    
    
    
    
    
    

Advanced Budgeting Challenge Answer Key

Note to Teacher: The answers for variable expenses (like going out with friends) and emergency fund contributions can have slight variations depending on student choices. Focus on the logical reasoning and how students account for these choices.

Monthly Income

1. Business Earnings (Average): $200
   
   
   
   • Thought Process: Directly stated in the scenario.
2. Allowance: $50
   
   
   
   • Thought Process: Directly stated in the scenario.
3. Total Monthly Income: $250
   
   
   
   • Thought Process: $200 (Business) + $50 (Allowance) = $250

Monthly Expenses

Fixed Expenses (Expenses that stay the same each month)

4. Phone Bill Contribution: $25
   
   
   
   • Thought Process: This is a consistent monthly payment.
5. Streaming Service Subscription: $10
   
   
   
   • Thought Process: This is a consistent monthly payment.
6. College Savings Contribution: $20
   
   
   
   • Thought Process: This is a planned, consistent monthly contribution towards a long-term goal.
7. Total Fixed Expenses: $55
   
   
   
   • Thought Process: $25 (Phone) + $10 (Streaming) + $20 (College Savings) = $55

Variable Expenses (Expenses that can change each month)

8. Business Supplies: $40
   
   
   
   • Thought Process: Stated as an average, acknowledging it can vary. We use the average for planning.
9. Going Out with Friends/Entertainment: $30-$50 (Student choice, e.g., $40)
   
   
   
   • Thought Process: Students should pick a realistic amount within the given range. For this key, we will use $40 as an example.
10. Other Variable Expenses (if any): $0 (or student specified)
    
    
    
    • Thought Process: The scenario does not specify others, but students might add something. Assume $0 for this key.
11. Total Variable Expenses: $80
    
    
    
    • Thought Process: $40 (Supplies) + $40 (Entertainment) = $80

Savings Goals

12. Gaming Console Savings (Monthly contribution needed to reach $500 in 5 months): $100
    
    
    
    • Thought Process: $500 (Goal) / 5 (Months) = $100 per month.
13. Emergency Fund (Monthly contribution needed to reach $100 total - decide how many months you want to take): $20 (If saving over 5 months like the console)
    
    
    
    • Thought Process: Students need to decide how quickly they want to build this. If they aim for 5 months like the console: $100 (Goal) / 5 (Months) = $20 per month. Flexibility here is key for student choice and discussion.
14. Total Monthly Savings Contribution: $120
    
    
    
    • Thought Process: $100 (Console) + $20 (Emergency Fund) = $120

Summary

15. Total Income: $250
    
    
    
16. Total Expenses (Fixed + Variable):: $55 (Fixed) + $80 (Variable) = $135
    
    
    
17. Total Savings Contribution: $120
    
    
    
18. Remaining Money (Income - Expenses - Savings): $250 - $135 - $120 = -$5 (This highlights a common budgeting challenge!)
    
    
    
    • Thought Process: This result intentionally creates a deficit to prompt discussion in the reflection questions about making adjustments.

Reflection Questions:

19. What was the most challenging part of creating this budget, and why?
    
    
    
    
    
    

    • Sample Answer: The most challenging part was trying to fit all the expenses and savings goals within the income. It was hard to decide what to cut back on or if I needed to earn more. It made me realize how quickly money can be used up, especially with big goals like the gaming console.

20. If you found that your expenses and savings were more than your income, what are two ways you could adjust your budget to balance it?
    
    
    
    
    
    

    • Sample Answer: 1. I could reduce my variable expenses, like spending less on going out with friends (maybe cut it from $40 to $20). 2. I could try to increase my income, either by finding more customers for my phone cases or by asking for more chores to earn extra allowance. I could also spread out my savings goals over a longer period, like saving for the console over 6 or 7 months instead of 5, to reduce the monthly savings contribution.

21. How might creating an emergency fund help you in a real-life situation? Provide an example.
    
    
    
    
    
    

    • Sample Answer: An emergency fund is super helpful for unexpected situations. For example, if my phone case business suddenly needs a more expensive type of material due to a trend, or if my laptop breaks and I need to pay for a repair quickly, the emergency fund would cover that without me having to use money saved for my gaming console or college. It gives me a safety net.

22. Why is it important to consider both short-term (like the gaming console) and long-term (like college savings) financial goals when budgeting?
    
    
    
    
    
    

    • Sample Answer: It's important to balance both because while short-term goals give you immediate motivation and rewards, long-term goals are crucial for your future well-being and bigger life plans. If you only focus on short-term goals, you might miss out on important opportunities like college or building significant wealth. If you only focus on long-term, you might feel deprived and less motivated. A balanced budget helps you enjoy today while planning for a secure tomorrow.