Zero-Based Budgeting
Activity Description
In this Zero-Based Budgeting worksheet activity, students will practice managing a hypothetical monthly income of $4,500. They are required to allocate this income across various categories, such as
- Groceries
- Transportation (gas, public transit)
- Dining out or fast food
- Entertainment (movies, concerts)
- Clothing and personal care
- Gifts and donations
- Hobbies and leisure activities
- Emergency fund
- Retirement savings (401(k), IRA, etc.)
- Savings for specific goals (vacation, education)
- Credit card debt
- Student loans
- Personal loans
Some expenses are fixed and cannot be adjusted, ensuring students understand the impact of non-negotiable costs. The worksheet features sliders for the adjustable categories, allowing students to distribute their remaining income based on their financial priorities and needs. The goal is for students to balance their budget perfectly, achieving a remaining balance of zero. This hands-on activity not only enhances budgeting skills but also teaches financial responsibility and prioritization.
Here is how the worksheet looks like -
Learning Objective
This activity aims to introduce students to the concept of zero-based budgeting, where every dollar of income is allocated to specific expense categories. By categorizing expenses as fixed, variable, and discretionary, students learn to prioritize spending, make informed financial decisions, and create a balanced budget that aligns with their financial goals. The activity fosters critical thinking, financial awareness, and empowers students to take control of their finances effectively.
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