Lesson 3: Budgeting
Duration of Days: 5
Lesson Objective
Analyze monthly household expenses
Explain the benefits of using a budget
Create a sample budget
Categorize purchases into needs and wants
Prioritize spending using a limited budget
Adapt a budget based on changing financial circumstances
Explain the difference between gross pay and net pay
Explain why we pay taxes and how the tax revenue is used
Explain basic budgeting strategy and why it’s important to follow a budget
What is a budget?
What is the difference between net and gross pay?
What are taxes and why do we pay them?
Spending
1b: Create a budget that includes expenses and savings out of a given amount of income
1c: Explain why people with identical incomes make different choices for spending, saving, and managing money
2b: Explain the types of information most helpful in making a purchase decision
Saving
1a: Identify the most common reasons that people save money for the future
2a: Compare personal attitudes toward saving to those of a friend or relative
2d: Discuss how savings decisions can affect financial wellbeing
Earning Income
5a: Differentiate between gross and net income
5b: Identify common types of payroll deductions
5c: Explain how taxes impact take-home pay
Determine how to make a budget to cover necessary expenses and find ways to save. Adapt a budget based on changing needs or income. DOK 1-3
paper copies of digital documents
Completion of digital documents