Your Money Story

Take a few minutes to think about your relationship with money. Answer the questions below:

1. What is one way you have earned money in the past (or how do you imagine earning money in the future)?
   
   
   
   
   
   
   

2. What is one thing you recently spent money on, or would like to spend money on?
   
   
   
   
   
   
   

3. In your own words, what do you think it means to "budget"?
   
   
   
   
   
   
   
   
   
   
   
   

Budget Breakthroughs

Take a moment to reflect on today's budgeting activity.

1. What was one surprising thing you learned about managing money or creating a budget?
   
   
   
   
   
   
   

2. What was the most challenging part of creating your budget? Why?
   
   
   
   
   
   
   

3. How do you think understanding budgeting could help you in your own life, now or in the future?
   
   
   
   
   
   
   
   
   
   
   
   

Budgeting: Reality Check Project Guide

Scenario:

Imagine you are a high school student with a part-time job. You earn $500 a month after taxes. You also have some typical expenses that you need to manage.

Your goal is to create a monthly budget that ensures your spending does not exceed your income. You will need to make some choices about your variable expenses.

Instructions:

1. Understand Your Income: Your total income for the month is $500.

2. Identify Your Expenses: Look at the list of expenses provided on your Reality Check Worksheet. Some are fixed (they stay the same), and some are variable (you have some control over them).

3. Categorize Expenses: On your Reality Check Worksheet, list each expense under either "Fixed Expenses" or "Variable Expenses."

4. Calculate Totals: Add up your total fixed expenses and your total variable expenses.

5. Create Your Budget:

   • Start with your total income.
   • Subtract your total fixed expenses. This will show you how much money you have left for variable expenses and savings.
   • Now, look at your variable expenses. Decide how much you will allocate to each one. Remember, you can adjust these! Maybe you can spend less on snacks to save more for a new video game, or choose fewer streaming services.
   • Make sure your total expenses (fixed + variable) do not go over your total income.

6. Reflect: Answer the reflection questions on your Reality Check Worksheet after you have completed your budget.

Expenses to Consider (monthly):

• Phone Bill: $40 (Fixed)
• Streaming Service (Music): $10 (Fixed)
• Bus Pass/Transportation: $30 (Fixed)
• Snacks/Treats: $50 (Variable - you choose how much to spend)
• Going Out with Friends: $75 (Variable - you choose how much to spend)
• New Clothes/Accessories: $60 (Variable - you choose how much to spend)
• Savings Goal (e.g., for a new game, concert tickets): $? (Variable - you decide how much to save)
• Other Entertainment (movies, books): $40 (Variable - you choose how much to spend)

Reality Check Worksheet: My Monthly Budget

Name: ________________________

My Income:

• Monthly Income: $500

My Expenses:

Use the Budgeting Project Guide to help you categorize and budget your expenses.

Fixed Expenses (Expenses that stay the same):

1. Was it easy or difficult to stay within your $500 income? Explain your answer.
   
   
   
   
   
   
   
   
   
   
   
   

2. What was one tough decision you had to make about your spending? Why was it tough?
   
   
   
   
   
   
   
   
   
   
   
   

3. If you had more income, how would you adjust your budget? If you had less, what would you cut first?
   
   
   
   
   
   
   
   
   
   
   
   

Reality Check Worksheet Answer Key

This answer key provides a possible approach to the budgeting scenario. Student answers for variable expenses and reflection questions will vary based on their choices and understanding. The key is that their total expenses do not exceed their income.

My Income:

• Monthly Income: $500

My Expenses:

Fixed Expenses (Expenses that stay the same):

Self-correction note: If a student has a deficit, guide them to adjust their variable expenses or savings until they reach $0 or a positive amount.

Reflection Questions:

1. Was it easy or difficult to stay within your $500 income? Explain your answer.

   • Possible student answer: It was a bit difficult because I wanted to buy a lot of things, but I had to make choices. I realized how quickly expenses add up. OR It was fairly easy once I prioritized what was most important to me.

2. What was one tough decision you had to make about your spending? Why was it tough?

   • Possible student answer: I really wanted new clothes, but I also wanted to save for a concert. It was tough because I had to choose between immediate fun and a bigger goal. OR Deciding how much to save was tough because I wasn't sure how much was enough.

3. If you had more income, how would you adjust your budget? If you had less, what would you cut first?

   • Possible student answer: If I had more income, I would put more into savings and maybe increase my budget for going out with friends. If I had less, I would probably cut down on snacks and other entertainment first, as those are things I can control easily.