Household Budget Lesson Plan

Instructor: Tammy Galloway

Tammy teaches business courses at the post-secondary and secondary level and has a master's of business administration in finance.

If you are discussing personal budgeting, this lesson plan explores how to construct a household budget. Students will read a lesson, participate in discussion questions, complete an activity and take a quiz.

Learning Objectives

After this lesson, students will be able to:

  • Identify the various types of income and expenses
  • Explain the purpose of identifying budget line items as fixed or variable
  • Construct a household budget

Length

60 minutes

Curriculum Standards

  • CCSS.ELA-LITERACY.W.11-12.1.a

Introduce precise, knowledgeable claim(s), establish the significance of the claim(s), distinguish the claim(s) from alternate or opposing claims, and create an organization that logically sequences claim(s), counterclaims, reasons, and evidence.

  • CCSS.ELA-LITERACY.W.11-12.1.b

Develop claim(s) and counterclaims fairly and thoroughly, supplying the most relevant evidence for each while pointing out the strengths and limitations of both in a manner that anticipates the audience's knowledge level, concerns, values, and possible biases.

  • CCSS.ELA-LITERACY.L.11-12.6

Acquire and use accurately general academic and domain-specific words and phrases, sufficient for reading, writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression.

Materials

Instructions

  • Prior to teaching this lesson, have students, for homework, talk with their parents about their household income, its sources, as well as expenses. They will need these figures and information for the Activity.
  • Begin this lesson by asking students to discuss the importance of setting and following a budget.
  • Now explain that students will learn about the different components of a budget in this lesson.
  • Distribute the Household Budgets & Personal Financial Management lesson, or pull up the video lesson for the class to watch. Have the students read or watch the section 'What Is a Budget?'.
  • Now ask the class to define a budget.
  • Have the students read or watch the 'Household Income' section, then pose the following questions:
    • Which types of household income should exist in a budget?
    • Based on the question above, which incomes are fixed and which are variable?
    • What is the purpose of identifying fixed and variable income?
    • Define bonus.
  • Have the students read or watch the 'Household Expenses' section and discuss these points:
    • Define an expense.
    • Identify fixed and variable household expenses.
    • What other expenses might a household incur besides those listed in the lesson.
  • Afterwards, have the students read or watch the remainder of the lesson, then pose the following discussion points:
    • Define discretionary income.
    • How do you calculate discretionary income?
    • Identify the three ways households use discretionary income?
    • What percentage of income should households save monthly?
    • Provide examples of non-essential items besides those listed in the lesson.
  • Now distribute the lesson quiz and allow students to complete individually, in pairs or groups.

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