Lesson 16: Budgeting 101

9.2 Budgeting 101

LEARNING OBJECTIVES

Students will be able to

●

Understand what budgeting is and why it is important

●

Explain how budgeting can be used to reach their financial
goals

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Explain the difference between budgetary needs and wants
and how these change from person to person

●

Describe strategies to use when trying to determine a need
from a want

●

Discuss the 50-20-30 rule and other budgeting strategies
to use when creating a budget and to save money

HOW CAN FACEBOOK MAKE YOU POORER?​

57% of millennials spent money they did not plan on spending because of what they saw on social media

88% of millennials believe social media creates a tendency to compare their wealth and lifestyle with others

Open Ended

Has social media (Instagram, Snapchat, Facebook, Twitter) impacted your purchasing behavior? How?

Open Ended

Name something that you bought after seeing it featured on a social media feed. How soon after seeing it did you buy it? 

RESOURCE 2: 6 REASONS WHY YOU NEED A

BUDGET

You probably know by now that a budget is a useful
way for you to keep track of your money. But what
exactly makes it such a powerful tool? Skim through
the article, from Investopedia, on the following slide.
Then, answer the questions.

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Open Ended

Despite these six reasons for keeping a budget, many people do not have a budget. Why do you think this is?

Open Ended

Out of the six reasons provided, which is the most important to you? Why?

RESOURCE 3: WHAT IS WEALTH?

Many people think that being wealthy means you own
“a lot of stuff.” However, it turns out that the number of
things you have does not determine your wealth. Watch
the video from Marketplace on the next slide to learn
more about what wealth means. Then, answer the
questions. As you move forward with the rest of the
lesson, keep in mind how improving your saving habits
impacts your overall wealth.

Open Ended

Your friends and you notice a classmate who always has brand new clothes, shoes, and electronics. 

What would you need to know in order to tell if this classmate’s family is actually wealthy? 

How do you think keeping a budget can impact your overall wealth?

RESOURCE 4: NEEDS VS WANTS

It’s important to determine what you really need
and what you really want. Watch the video, from
Columbia College on the next slide, to learn
more about how you can distinguish between
the two. Then, answer the questions.

Open Ended

When deciding if you should buy something, what can you ask yourself to determine if the item is a need or want? 

Why do you think people spend so much money on their wants despite the financial costs? 

RESOURCE 7: 50-20-30 RULE, BUDGETING TIPS

Some first-time budgeters may find creating a budget to be
an overwhelming process. Others may under or overestimate
how much money they need for certain categories. Review
the image to learn about the 50-20-30 rule, a popular rule of
thumb in budgeting. Then, answer the questions.

Open Ended

Do you think you will use the 50-20-30 budgeting rule of thumb when creating your own budget? 

If yes, what about the rule do you like that convinced you to use it? 

If no, what would you change about the rule? 

Open Ended

The image recommends that you put 20% of your income towards your “savings and financial goals”. What financial goals do you think you will have as a recent college graduate?

RESOURCE 6: COMPARE NEEDS VS WANTS

Go to Classroom to complete the independent activity