Budget Life Skill 1
Orientation Phase
(Revised 2011)
Overview:
Allowance is an important tool for teaching money management skills. This life skill is
intended to give students an idea of how to budget their weekly allowance based on
their needs, wants, and goals. Through the following activities, students will learn the
prices of some basics needs, as well as, typical wants of students at the Sky House.
Goal:
The goal of this Life Skill is to provide students with practice in setting up and maintaining
a personal budget using their weekly allowance and to help students anticipate their
spending needs through the week. Through understanding the prices of needed and
wanted items, students will grow in their ability to spend effectively, save, share, and
borrow as they use money for each of these purposes. Students will learn how to better
obtain the most value for their available dollars.
Method:
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Students will be required to find and list the prices of the items below to help them
differentiate between wanted and needed items.
Students will also be required to develop a spending plan (budget) for each
week that they are on Orientation Phase beginning their first full week in the
house. This will entail first, looking at how much allowance they get each week
and making a list of all their weekly expenses (fixed and flexible). Students will
then need to estimate how much each item/activity will cost for that week and
log it in their budget. As the week progresses and students are making
purchases, they should be logging the actual amount they are spending on each
purchase so they are able to compare it with what they originally estimated. This
will help students gain a more realistic view of how much they will be spending in
each area each week.
Once students have finished filling in the prices on the following page, have
completed two weeks of budgeting their allowance, and have answered the
questions at the end of this life skill, they will be required to meet with staff to
discuss their findings and share what they have learned from this life skill.
Find the prices of the following:
Item:
Example: brand X laundry
detergent
Your favorite laundry detergent/
cheapest laundry detergent
1 load in the washer
1 load in the dryer
2 days late book fine at Public
Library
Movie Rental at Super 1
Fine for late Movie at Super 1
1 can pop from FVCC machine
1 book of stamps
Your favorite brand of shampoo/
Cheapest shampoo
Your favorite toothpaste/ cheapest
tube
1 ticket to a evening movie
Your favorite ice cream treat from
Dairy Queen
Your favorite brand of deodorant/
cheapest brand deodorant
1 movie rental from Smith’s
1 12 pack of your favorite soda
1 box of envelopes
1 Cheap lunch from FVCC
Your favorite snack food
Your favorite magazine
Your favorite drink at Colter’s
Lift ticket at Big Mountain
Ice Skate Rental at Woodland
Roller Skating at Shady Lanes Rink
Evening Movie at Theater
Game of bowling at Pin and Cue
w/ Shoes
PRICE/SIZE:
$ 12.00 for 120 oz.
Allowance Break Down:
At orientation phase, students receive a weekly allowance of $20.00. The $20.00/week is
only guaranteed if students are able to refrain from receiving any fines that week. Some
ways students could lose allowance would be the following:
1.) Receiving X’s on chores. Each time a student receives an X, one dollar is
deducted from his/her weekly allowance.
2.) Being on restriction. $5.00 is deducted from allowance if a student is on
restriction at the time allowance is distributed.
Helpful Terms and Information:
What is a budget?
A budget is a spending plan in which an individual decides upon based on his/her
income and what his/her expenses are.
What a budget does for you:
1.) Puts you in control
2.) Helps you create a visual spending picture
3.) Helps you decide what you can and cannot afford
4.) Enables you to keep track of how you spend your money
5.) Helps you create a savings plan
6.) Helps you decide how you can protect yourself against the financial
consequences of unforeseen events.
How to prepare a spending plan:
1.) Identify what your weekly income (allowance) is.
2.) Set goals based on needs and wants
3.) Determine expenses and prepare a list of both weekly fixed and weekly flexible
expenses. Fixed expenses are items that you have to pay for each week. An
example might be laundry if it is something you need to do every week. Flexible
expenses are items that vary from week to week. Some examples might be
snacks, entertainment, transportation etc… Also, decide if you would like to put
aside any money to save.
4.) Revise your spending plan as needed
Ways to find a bargain:
1.) Shop at thrift stores or yard sales
2.) Use coupons
3.) Look for sale items
4.) Purchase generic items instead of brand names
5.) Shop at the dollar store 
Things to ask yourself when making a purchase:
1.) Do I really need the item?
2.) Is the price reasonable to justify buying it?
3.) Is this the best time to buy the item?
4.) If, “on sale,” is the price a true sale price?
5.) Can a less expensive item be substituted?
6.) Will it truly satisfy an inner need?
Answer the following Questions:
1.) Why do you think it is important to learn money management skills?
2.) What sorts of things should you consider when creating a spending
plan (budget)?
3.) What patterns do you see in your spending habits?
4.) What are some ways in which you can lose allowance?
5.) Did you find this life skill helpful to you? Why or why not?