Budgeting
Course Title – Money Matters
Lesson Title – Personal Budgeting
Performance Objectives: Understand and know how to budget wisely.
Specific Objective :
As a result of this lesson, the student will:
1. Explain why and how budgets are used in financial planning.
2. Demonstrate accurate budgeting – projected income and expenses.
3. Understand cash flow.
Time: Instruction time: 60 minutes, this may vary depending on teaching style.
Activities will also affect time needed to complete lesson – depending on the
number and nature of activities chosen.
TEKS Correlations: 130.162.(c)(11(A),(16)(A)
Occupational Correlation (O*Net – http://www.onetonline.org/)
13-2011.01 - Accountants
Similar job titles: Accountant, Certified Public Accountant (CPA), Staff
Accountant, Accounting Manager, Cost Accountant, General Accountant,
Accounting Officer, Business Analyst, Accounting Supervisor, Financial Reporting
Accountant
Tasks


Prepare, examine, or analyze accounting records, financial statements, or other
financial reports to assess accuracy, completeness, and conformance to
reporting and procedural standards.
Report to management regarding the finances of establishment.

Establish tables of accounts and assign entries to proper accounts.

Develop, implement, modify, and document recordkeeping and accounting
systems, making use of current computer technology.

Compute taxes owed and prepare tax returns, ensuring compliance with
payment, reporting or other tax requirements.

Maintain or examine the records of government agencies.

Advise clients in areas such as compensation, employee health care benefits,
the design of accounting or data processing systems, or long-range tax or
estate plans.

Develop, maintain, and analyze budgets, preparing periodic reports that
compare budgeted costs to actual costs.

Provide internal and external auditing services for businesses or individuals.
Copyright © Texas Education Agency, 2012. All rights reserved.
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
Analyze business operations, trends, costs, revenues, financial commitments,
and obligations, to project future revenues and expenses or to provide advice.
Preparation
Materials and Equipment Needed:




Computer with projection capabilities and internet access
Budgeting Basics Worksheet (1 per student)
Create a Personal Budget Worksheet (1 per student)
Show Me the Money! (1 per student)
Learner Preparation:
•
•
•
Show several clippings about consumer debt, and lead students in a discussion
about the article(s) to help guide their thinking toward budgeting helps that
could help them avoid debt.
Distribute the “Show Me the Money” handout to guide students as they
consider options for earning money.
Guide students through the word problem scenarios to guide them to project
earnings.
Accommodations for Learning Differences:
ESL: Financial Literacy Lessons for ESL Students
http://ida.neighborhoodpartnerships.org/assets/files/Financial_Literacy%20_Lesso
ns_for_ESL_Students.pdf
Activity/Outline:
Budgeting Basics: Give each student a copy of the Budgeting Basics handout.
Allow students 5-7 minutes to fill it out or consider it. After students have
considered the Budgeting Basics handout topics, discuss the scenarios together as
a class. Guide students through the process to analyze the elements of the budget
in the scenario.
Summary
Review: Utilize the completed Budgeting Basics handout to discuss the
consequences of spending and saving behaviors, and the budget analysis.
Evaluation
Informal Assessment:
Observe students as they participate in the various activities of the lesson –
particularly the scenarios in “Show Me the Money” and “Budgeting Basics.” During
discussion of these pieces, check for understanding of the budgeting concepts
highlighted in the various problems and scenarios presented.
Copyright © Texas Education Agency, 2012. All rights reserved.
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Formal Assessment:
“Create a Personal Budget” - Check/grade this piece with a focus on whether the
student understands the process and principles of budgeting. The numbers will
vary, but the understanding and application of concepts discussed during this
lesson will be evident.
“Keeping Track of Your Money” – Two week earning and spending record that
students complete as the time passes. (May also be used for
Extension/Enrichment). If utilized as a formal assessment, this piece could also
include a check point at the end of the first week to insure that students are on the
right track.
Extension/Enrichment:
Distribute the “Keeping Track of Your Money” handout for students to track their
earning and spending for two weeks
Additional Resources:
Websites:
"ISEEK | Minnesota's career, education, and job resource." ISEEK | Minnesota's
career, education, and job resource. N.p., n.d. Web. 19 Jan. 2012.
<http://www.iseek.org/>.
Adapted from "FFA Learn." Financial Planning and Management. N.p., n.d. Web.
17 Jan. 2012. <https://www.ffa.org/FFAResources/ffalea
Introduction
Introduction (LSI Quadrant I):
SHOW: Several clippings about consumer debt, and lead students in a discussion
about the article(s) to help guide their thinking toward how a personal budget helps
that could help them avoid debt.
ASK: How would someone go into debt?
SAY: Sometimes people buy things that they want before they take care of their
basic expenses. When it comes time to pay the bills for rent, groceries and utilities,
they find they are out of money because they spent it on fast food, movies, etc.
(ask students what some other such items might be).
ASK: How could someone keep from going into debt?
SAY: Make a plan for spending and saving so that you work within your financial
abilities and do not have to go into debt to cover necessary expenses.
ASK: Do any of you have a budget?
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Outline
Outline (LSI Quadrant II):
Instructors can use the presentation, slides, handouts, and note pages in
conjunction with the following outline.
MI
I.
Outline
Introduction
A. Define budget
B. Discuss about lifestyle ‘likes’
C. Discuss ‘wants’
Notes to Instructor
Use the Presentation
as an aid.
Have students
brainstorm about living
expenses – current
and future:
• The kind of car they
would like to drive
• Where they would
like to vacation
• What kind of house
would they would like
to live in, and where
they would like that
house located
Also discuss ‘wants’
and the costs of
them
• Cell phone
• Gasoline for car
• Clothing
• Entertainment
• Fast food
Talk briefly about the
costs of some of these
choices.
Copyright © Texas Education Agency, 2012. All rights reserved.
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II. Income Sources –consider possible sources of
income for them at this point in their lives.
Use Presentation as
aid.
Give each student a
copy of the “Show me
the Money” handout.
Have students
consider things they
do and do not like to
do to and/or would or
would not be willing to
do to earn money
(source of income).
.
III. Key Terms:
A. Expenses – what you spend money on
B. Income – any money you receive
C. Budget – A plan for earning, saving, borrowing
and spending
Use Presentation as
aid
IV. Why Track Income and Expenses?
Use Presentation as
aid
Have students record
the key terms and
definitions into their
notes.
\


Copyright © Texas Education Agency, 2012. All rights reserved.
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Give each student
a copy of the
Budgeting Basics
handout. Allow a
few minutes for
them to fill it out or
consider.
Work through the

Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
scenarios together
(create
discussion).
Guide students
through the
process to analyze
the elements of the
budget in each
scenario.
Naturalist
Existentialist
Guided Practice (LSI Quadrant III):
Activity: “Show Me the Money” handout – p. 2. Students will work through a
scenario with different variables in order to earn enough money to buy a video
game.

Acitivity: “Budgeting Basics” handout - . Allow a few minutes for them to fill it out or
consider. Work through the scenarios together (create discussion). Guide students
through the process to analyze the elements of the budget based on each set of
variables.
Independent Practice (LSI Quadrant III):
“Create a Personal Budget” - Check/grade this piece with a focus on whether the
student understands the process and principles of budgeting. The numbers will
vary, but the understanding and application of concepts discussed during this
lesson will be evident.
“Keeping Track of Your Money” – two week earning and spending record that
students complete as the time passes. (May also be used for
Extension/Enrichment). If utilized as a formal assessment, this piece could also
include a check point at the end of the first week to insure that students are on the
right track.
Summary
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Review (LSI Quadrant I & IV):
Evaluation
Informal Assessment (LS1 Quadrant III): Instructor should observe the work ethic
of individuals involved in class discussions and the independent practice activity.
Formal Assessment (LSI Quadrant III, IV):
“Create a Personal Budget” - Check/grade this piece with a focus on whether the
student understands the process and principles of budgeting. The numbers will
vary, but the understanding and application of concepts discussed during this
lesson will be evident.
“Keeping Track of Your Money” – two week earning and spending record that
students complete as the time passes. (May also be used for
Extension/Enrichment). If utilized as a formal assessment, this piece could also
include a check point at the end of the first week to insure that students are on the
right track.
Extension
Extension/Enrichment (LSI Quadrant IV): Distribute the “Keeping Track of Your
Money” handout for students to track their earning and spending for two weeks.
Copyright © Texas Education Agency, 2012. All rights reserved.
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NAME: _______________________ DATE: ____________________ PERIOD: _________
Show Me the Money!
Let's face it: Everyone needs money to survive. We need money to pay for shelter, food, clothing,
and other necessities. There are several ways to get money. You can:
1. Earn money by working
2. Receive money through the exchange of goods or services
3. Receive money from someone as a gift
Anyone at any age can earn money.
Put a check mark in the box next to what you like to do or what you don't like to do. You can
add other ways to earn money on the blank lines.
LIKE
TO DO
ACTIVITY
DON’T
LIKE
TO DO
Baby Sit
Clean
Collect loose change
Create a Web page
Fix bicycles
Have a garage sale
Invent something
Make/sell cookies or food
Make/sell crafts
Mow lawns
Paint houses
Rake leaves
Run a lemonade stand
Sell old books and toys
Shovel snow
Tutor
Walk dogs/pet-sit
Wash cars
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-Show Me the Money p.2When you have a goal you want to reach, it's a good idea to plan ahead and figure out the steps to
reach that goal. Setting goals increase your likelihood of getting what you want out of life.
In the following activity, figure out how much work you
need to do in order to save for each goal if you received
these amounts: I make:
If I:
$1.50
$1.50
$3.00
$4.50
$6.00
Walk the dog
Sell an old toy
Mow a lawn
Wash a car
Shovel snow
1. Your favorite video game costs $18 and you want to make the money by washing cars.
How many cars will you need to wash to make enough money to buy the video game?
2. If you sell five toys and shovel snow once, will you have enough money to buy the video
game?
3. If you mow three lawns, what else could you do to earn the $18 you need to buy the video
game?
Adapted from
Financing Your Future
[Minnesota Office of Higher Education]
Copyright © Texas Education Agency, 2012. All rights reserved.
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NAME: _______________________ DATE: ____________________ PERIOD: _________
BUDGETING BASICS WORKSHEET
A budget tracks how much money you have coming in (income, allowance, gifts), and how much
you have going out (expenses for needs and wants). How much money you can save will depend
on how much you are able to put away and still pay for other expenses.
What are some items you budget for each week or month?
______________________________________________________________________________
______________________________________________________________________________
Did you overspend or under-spend on any of your budgeted items?
______________________________________________________________________________
______________________________________________________________________________
What happens if you don't keep track of how you spend your money?
______________________________________________________________________________
______________________________________________________________________________
Put a true (T) or false (F) next to each statement.
Using a budget will help me:
_____ Figure out how much money I have available to spend.
_____ Find out if I like school.
_____ Decide what I want to do with my money.
_____ Save money for college.
_____ Learn if I get good grades.
_____ Help me stay out of financial problems.
Building a budget plan is as easy as 1-2-3:
1. Choose a time frame for your budget.
1. Estimate what your income and expenses will be for the chosen time frame. What are your
priorities?
1. Make sure your expenses aren't more than your income. Remember to include savings in your
plan.
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Budgeting Basics Worksheet p.2
You have $20 in savings for college, and you just received $50 from your aunt for your birthday.
Make a budget to decide how you will spend or save your money. An example has been set-up for
you below.
Time period:
______________________
_______ Item
Savings for college
Baseball cap
Candy
Eating out
Mom's birthday present
CDs or music downloads
TOTAL
Amount budgeted
$10
$8
$2
$5
$10
$15
$50
Actual amount spent
$10
$12
$3 + $4 + $2 = $9
$2 + $4 = $6
$18
$0
$ ____
Amount spent above or
below the amount
budgeted
$0
Above budget by $4
Above budget by $7
Above budget by $1
Above budget by $8
Below budget by $15
_______________ by
____
Which items did you prioritize money for? Did you overspend or save?
______________________________________________________________________________
______________________________________________________________________________
What happens when you overspend on some items?
______________________________________________________________________________
______________________________________________________________________________
Do you think it is OK to overspend? Why or why not?
______________________________________________________________________________
______________________________________________________________________________
If you continue to tap into your college savings fund, what will the consequences be?
______________________________________________________________________________
______________________________________________________________________________
Adapted from
Financing Your Future
[Minnesota Office of Higher Education]
Copyright © Texas Education Agency, 2012. All rights reserved.
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NAME: _______________________ DATE: ____________________ PERIOD: _________
CREATE A PERSONAL BUDGET
Create a monthly budget to make career goals that fit your current and future financial needs. If you are
not currently employed, create a future budget based on a desired occupation.
Make copies of this page to make a few budgets. Create one that you can use now, and other budgets
based on your projected expenses and income a few years from now. See how your budget changes
when you add or cut monthly expenses or use wages from different jobs.
Occupation ________________________________ Occupation Median Wage $ ____________
(Utilize occupation titles and wages from O*Net – http://www.onetonline.org/)
Gross Pay vs. Net Pay
Gross monthly income is your hourly wages times
the number of hours you work in an average month
or your annual salary divided by 12.
$ ________________
Payroll deductions include Federal and State
taxes, Social Security plans and insurance costs
(typically 30 percent of your gross monthly income).
$ ________________
Net monthly income is your total take-home pay,
minus payroll deductions. This is the number to use
for your monthly budget.
$ ________________
When estimating your monthly expenses, determine how much you spend in each category
based on an honest look at your projected spending habits. Base your budget on your net
income (amount left after taxes, etc., are deducted), not your gross income.
Copyright © Texas Education Agency, 2012. All rights reserved.
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Create a Personal Budget p. 2
Monthly Expenses
Housing includes monthly rent or mortgage payments (preferably no more
than 30 percent of your income).
Food expenses vary for single people and families. Be sure to include eating
out.
Utilities are services in your home like electricity, heating costs, telephone
service, Internet service, cable TV, etc.
Transportation costs include public transportation fares or car payments, gas
and insurance. Also include car repairs and other costs needed to maintain a
vehicle.
Savings, whether in a bank account or investments, are important for
unexpected emergencies, large purchases and retirement.
Clothing includes work and casual clothes, shoes, coats and accessories. If
you don't buy clothes every month, estimate your yearly expenses and divide
by 12.
Entertainment includes money spent on going to the movies, DVD rentals,
concerts, going to clubs, buying books, video games, etc. Multiply your weekly
expenses by four to get a monthly average.
School payments include tuition, student loans, books and supplies.
Debt includes credit card bills and other monthly payments.
Miscellaneous expenses cover all the other things you might spend money on
regularly, like cell phone, cosmetics, household cleaning supplies, pet
products, prescriptions, other medical costs, etc.
Total Monthly Expenses =
Net Income – Monthly Expenses =
Adapted from
Financing Your Future
[Minnesota Office of Higher Education]
Copyright © Texas Education Agency, 2012. All rights reserved.
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NAME: _______________________ DATE: ____________________ PERIOD: _________
Keeping Track of Your Money
In order to have control of your money, you need to know where it's going!
For the next two weeks, keep track of everything you spend. For this activity, you will create your
own budget. Fill out the record:
Budget Period - start and end date for this activity
Amount Available - how much money you have to spend during this period.
Items, list the items on which you usually spend your money.
Amount Budgeted, write down the most you plan to spend for each item.
Actual Amount Spent - how much you actually spent every day under.
Subtract Actual Amount Spent from Amount Budgeted, and
write the amount under Spent above or below budgeted amount.
Budget Period: ____________________________ Amount Available: $____________
Item
Amount Budgeted
Actual Amount Spent
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Spent above or below
budgeted amount
Keeping Track of Your Money p. 2
What was it like to follow to a budget? Was your budget realistic?
______________________________________________________________________________
______________________________________________________________________________
What patterns do you see in your spending habits? Where did you overspend or under spend?
______________________________________________________________________________
______________________________________________________________________________
Were you able to save any money? Why or why not?
______________________________________________________________________________
______________________________________________________________________________
What would you change in your budget?
______________________________________________________________________________
______________________________________________________________________________
Adapted from
Financing Your Future
[Minnesota Office of Higher Education]
Copyright © Texas Education Agency, 2012. All rights reserved.
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