Budgeting Basics Reading

What Is a Budget?

A budget is a plan that shows how you will earn and spend money. Think of it as a roadmap that helps you reach your financial goals. A budget lists your income (money you receive) and your expenses (money you spend). When your income is higher than your expenses, you can save the difference or use it for something special.

Key Terms:

• Income: Money you get (e.g., from jobs, allowances, gifts).
• Expenses: Money you spend (e.g., food, transportation, entertainment).
• Savings: Money you keep for later.

Why Saving Matters

Saving money is important because it gives you freedom and security. When you save, you prepare for:

• Emergency needs like unexpected repairs or medical bills.
• Short-term goals like buying a new phone or going on a school trip.
• Long-term goals like college, a car, or your first apartment.

By saving a little each month, you build habits that help you handle life’s surprises and achieve your dreams.

Connecting Budgeting with STEAM

Budgeting isn’t just about dollars and cents—it’s also a STEAM activity. STEAM stands for Science, Technology, Engineering, Art, and Math. Here’s how each area connects to managing money:

• Math: Calculate totals, percentages, and savings goals. (Example: What is 10% of your allowance?)
• Technology: Use apps or spreadsheets to track spending and visualize your budget.
• Engineering: Design systems (like envelopes or jars) to organize your cash flow.
• Art: Create colorful charts or infographics that make your budget easy to understand.
• Science: Test different saving strategies (e.g., the “50/30/20” rule) and observe results over time.

Getting Started

1. List all sources of income for the month.
2. Write down your fixed expenses (needs) and variable expenses (wants).
3. Decide how much to save or invest.
4. Use a STEAM tool—like a chart, app, or model—to keep track.

In the next sections, you’ll read a scenario about planning a budget for a school trip, discuss important questions with your peers, and practice creating your own budget plan!

Budgeting Discussion Guide

Objectives

• Reflect on key budgeting concepts from the reading.
• Practice explaining ideas using sentence stems.
• Connect budgeting to personal goals and STEAM skills.

Directions for Teachers

• Arrange students in pairs or small groups for think-pair-share.
• Provide printed sentence stems and highlighters; use visuals or icons for key terms (IEP/504 support).
• Allow alternative response modes: written, oral, or sketched diagrams.

Discussion Questions

1. What is a budget, and why is it important?
   Sentence Stems:

   • "A budget is…"
   • "I think it is important because…"
     
     
     
     

2. From the Budgeting Basics Reading, list two ways saving helps you and describe one personal example.
   Sentence Stems:

   • "Saving helps me when…"
   • "For example, I could…"
     
     
     
     
     
     
     

3. STEAM Connection: Which STEAM area (Science, Technology, Engineering, Art, Math) interests you most for budgeting, and how would you use it?
   Sentence Stems:

   • "I am most interested in ___ because…"
   • "I would use this in budgeting by…"
     
     
     
     
     
     
     

4. Using the Create-a-Budget Activity Sheet, how might you organize your income and expenses?
   You may draw a simple diagram, create a chart, or write a brief explanation.
   
   
   
   
   
   
   

Teacher Supports & Follow-Up Prompts

• Encourage students to ask clarifying questions:
  • “Can you explain more about how you’ll track that expense?”
  • “What would happen if your income changed?”
• Use visual anchor charts or icon cards for budgeting vocabulary.
• For students needing extra support, pair with a peer mentor or offer sentence starters printed on index cards.
• Extend thinking: “If you had to cut one expense, which would it be and why?”
  
  
  
  
  
  
  
  
  
  
  
  

Wrap-Up Reflection

What is one budgeting skill you will use this week? How will it help you?
You may write a sentence or share your response orally.

Create-a-Budget Activity Sheet

Instructions

1. List your monthly income sources in the table below. Estimate how much you will earn, then record your actual amount at the end of the month.
2. List your fixed and variable expenses in the next table. Estimate and then record the actual cost.
3. Calculate how much you can save. Subtract your total expenses from your total income.
4. Use the STEAM Design Space to create a visual representation of your budget (chart, infographic, model, etc.). Think about colors, icons, or diagrams that make your data clear.
5. Answer the reflection questions to solidify your learning.

1. Income Sources

2. Expenses

3. Savings Calculation

• Total Income: $______
• Total Expenses: $______
• Planned Savings (Income – Expenses): $______
• Actual Savings (at month end): $______

4. STEAM Design Space

Use this area to design a visual of your budget. You might draw a pie chart, bar graph, envelope system, or sketch an infographic. Label your design and choose colors to represent each category.

5. Reflection Questions

1. What was the easiest part of creating your budget?
   
   
   
   
2. What surprised you about your expenses or income?
   
   
   
   
3. How will you adjust your spending or saving next month?
   
   
   
   
4. Which STEAM area did you enjoy using most, and why?
   
   
   
   
   
   

Money Management Game

Objective

Practice quick budgeting decisions and apply STEAM-informed money management in real-world scenarios.

Materials Needed

• Printed scenario cards (cut and shuffled)
• Personal Finance Worksheet for recording decisions
• Timer or stopwatch

How to Play

1. Divide students into small groups of 3–4. Give each group a set of scenario cards face down.
2. Set a timer for 5 minutes.
3. On your turn, draw the top card, read the scenario aloud, and choose one of the three options (A, B, or C).
4. Record your group’s choice and a brief reason on the Personal Finance Worksheet.
5. Check the suggested point values for your choice (listed on each card) and tally points.
6. Return the card to the bottom of the deck; the next group takes its turn.
7. Continue until time is up.
8. The group with the highest points wins! Discuss which decisions were most STEAM-driven and why.

Scenario Cards

Card 1: Bike Tune-Up
Your bicycle needs a $25 tune-up. You only budgeted $20 for maintenance this month.
A) Use $5 from your savings to cover the full cost. (+1 point)
B) Skip the tune-up to save money now but risk a breakdown. (0 points)
C) Cut $5 from your entertainment budget instead. (+2 points)

Card 2: Lending to a Friend
A friend asks to borrow $15 from your savings this week.
A) Lend the full $15 without conditions. (–1 point)
B) Politely decline and explain your budget. (0 points)
C) Lend $15 but set a plan to repay you next month. (+2 points)

Card 3: Headphones on Sale
Quality headphones are on sale for $50. You have $60 left in your discretionary fund.
A) Buy now to take advantage of the sale. (+1 point)
B) Wait for next month and stick to your original plan. (+2 points)
C) Buy now and reduce your savings goal by $10. (0 points)

Card 4: Streaming Subscription
A streaming service offers a new $12/month student plan.
A) Subscribe this month and adjust savings accordingly. (0 points)
B) Use the free trial now and decide later. (+2 points)
C) Pass on the subscription to protect your budget. (+1 point)

Card 5: Bake Sale Fundraiser
Join a school bake sale: you can earn $15 after spending $5 on ingredients.
A) Participate and earn the $15. (+2 points)
B) Skip it to focus on homework. (0 points)
C) Bake extra at home to boost your profit. (+1 point)

Card 6: Birthday Gift Dilemma
You want to buy a $30 gift for a friend but didn’t budget for it.
A) Put the $30 on a credit card. (–2 points)
B) Use $30 from your savings. (+1 point)
C) Make a thoughtful DIY gift for under $5. (0 points)

Card 7: Carpool Contribution
Your parents need you to contribute $15 to the carpool this month; you budgeted only $10.
A) Add $5 from your savings. (+1 point)
B) Stop carpooling and find another ride. (–2 points)
C) Walk or pay-per-ride instead. (–1 point)

Card 8: Found Cash Windfall
You find $50 in an old jacket pocket.
A) Spend it all on entertainment. (–1 point)
B) Deposit the full $50 into savings. (+2 points)
C) Split it evenly between spending and saving. (+1 point)

Teacher Note: Encourage students to justify their choices using STEAM reasoning (e.g., using math to calculate trade-offs, art to visualize impact, or engineering to design systems for saving). Debrief by discussing which options best balanced needs, wants, and savings goals.

Personal Finance Worksheet

Part 1: Record Your Game Decisions

During the Money Management Game, fill in your choices, reasons, and points earned for each scenario.

Part 2: Reflection Questions

1. Which decision gave your group the most points and why?
   
   
   
   
   
   
   
   
2. What STEAM skills did you use when making your choices?
   
   
   
   
   
   
   
   
3. How will you apply what you learned about budgeting and saving in your own life?
   
   
   
   
   
   
   
   
   
   
   
   
4. What is one budgeting habit you plan to start this week? How will it help you?
   
   
   
   
   
   
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