Zero-Based Budgeting
- Price per Classroom$2.00
- Grade Levels 8, 9, 10
- Topics Budgeting, Saving
- Duration 15 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
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.
Teacher Tips
- Price per Classroom$2.00
- Grade Levels 8, 9, 10
- Topics Budgeting, Saving
- Duration 15 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
National Standards in Personal Financial Education
Students will know that A budget helps people achieve their financial goals by allocating income to necessary and desired spending, saving, and philanthropy .. Students will use this knowledge to 12-1a . Identify their short-term and long-term financial goals . 12-1b . Develop a budget to allocate current income to necessary and desired spending, including estimates for both fixed and variable expenses . 12-1c . Explain methods for adjusting a budget for unexpected expenses or emergencies . 12-1d . Evaluate the advantages of using budgeting tools, such as spreadsheets or apps .
Students will know that Creating a budget can help people make informed choices about spending, saving, and managing money in order to achieve financial goals .. Students will use this knowledge to 8-1a . Identify personal goals for spending and saving . 8-1b . Create a budget that includes expenses and savings out of a given amount of income . 8-1c . Explain why people with identical incomes make different choices for spending, saving, and managing money . 8-1d . Discuss the budgeting challenges faced by people living on minimum wage .