Budgeting for Discretionary & Non-Discretionary Expenses
- Price per ClassroomFREE
- Grade Levels 7, 8, 9, 10
- Topics Budgeting
- Duration 20 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
Activity Description
In this budgeting activity, students are given a salary of $3400 and are tasked with making choices regarding their discretionary expenses, while keeping non-discretionary expenses constant. The goal is to introduce students to the concept of budgeting by helping them understand the difference between discretionary (optional) and non-discretionary (essential) expenses. By making these choices, students learn how to prioritize spending, make informed financial decisions, and start developing crucial budgeting skills necessary for managing personal finances effectively.
Students will use interactive graphical spinners to choose different categories such as the type of house to rent, dining out choices, commute options, % to be saved for the future, internet plan, and entertainment options.
Learning Objective
In this quick start activity, students are given a salary of $3400 and are tasked with making choices regarding their flexible/modifiable expenses, while keeping fixed expenses constant. The goal is to introduce students to the concept of budgeting by helping them understand that there are some expenses that can be modified while some are fixed. By making these choices, students learn how to prioritize spending, make informed financial decisions, and start developing crucial budgeting skills necessary for managing personal finances effectively.
Teacher Tips
- Price per ClassroomFREE
- Grade Levels 7, 8, 9, 10
- Topics Budgeting
- Duration 20 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
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National Standards in Personal Financial Education
Students will know that People differ in their preferences, priorities, and resources available for consuming goods and services .. Students will use this knowledge to 4-1a . Give examples of differences in people’s preferences that can influence their spending on goods and services . 4-1b . Brainstorm a personal list of goals for consumption of goods and services . 4-1c . Prioritize future spending, taking resource limitations into account .