Budgeting

Objective: Students will understand what budgeting is and why it is important. Students will

determine their personal needs and wants to understand how they play a role in creating aneffective budget.

Requirements

Create a personal balance sheet. Determine assets and liabilities and calculate net worth.

Answer the following questions:

Using research from local sources (such as newspapers, chambers of commerce, local government, and company websites), create a monthly personal budget. Cite specific textua l evidence from findings when calculating earnings of a selected occupation and including accurately estimated household living expenses, taxes, potential savings, and an emergency fund.

Why a Budget?

What makes a budget such a powerful tool? Read the article 6 Reasons Why You Need a Budget. Use complete sentences to answer the following questions:

a. Out of the six reasons provided, which is the most important to you? Why?

b. Despite these six reasons for keeping a budget, many people do not have a budget.

Why do you think this is?Wants vs Needs

A key part of creating a budget that works for you is knowing the difference between your needs from your wants. Watch the video Needs vs Wants. Use complete sentences to answer the following questions:

3. When deciding if you should buy something, what can you ask yourself to determine if the item is a need or a want?

4. Why do you think people spend so much money on their wants despite the financial costs?

Reflection

5. Give one reason why it is important to create, and stick to, a budget.

6. How can budgeting impact your overall wealth?

7. What role do your needs and wants play when creating a budget?