Budgeting for Discretionary & Non-Discretionary Expenses
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
