Budgeting for Teenagers

Middle SchoolFinancial Literacy #2

Pre-Test

1. What are the three keys to keeping a budget?

2. What are the two main categories of a budget?

3. What is the most important key to keeping a budget?

Objectives

• Review Last Week’s Lesson • Keys to a Good Budget• Sample Monthly Budget• Plan for a Monthly Budget

Review Last Week’s Lesson

1. Tool on the internet that provides information about income vs. expenses

• Reality Check

2. What is the annual salary needed to cover your expenses?

• Average Range: $50,000-$60,000

3. What careers of interest cover those expenses?• Usually needs to be a high-skilled career with some

type of postsecondary education

Keys to a Good Budget

1. Set Goals– Increase Income and Reduce Expenses

2. Create and Modify Your Budget– Find ways to improve budget

3. Follow Through– Most important– Make budgeting a habit

Watch “Youth on Savings” Video

• Take Notes– How many of the seven teens budget money well?– Name one teen that does budget well and one that

does not. Explain why you selected these two teens.

Income (Money Earned)

1. Money Earned– Lawn Mowing– Babysitting– Shoveling Snow

2. Allowance– Monthly amount from your parents

3. Other– Birthday or Christmas money– Interest from savings account

Expenses

1. Entertainment– Movies, Sporting Events, Going Out for Pizza

2. Clothes – May not spend money on clothes every month

3. Food/Snacks4. Technology – Video Games, Download Music

5. Savings

Sample Monthly Budget

• 7th grader – First try at a budget

• Not sure how much money he/she will earn– Set a goal for $50.00

• Not sure how much money will be spent• Set a saving’s goal for $20.00 a month

Sample Monthly Budget

Sample Monthly Budget

Sample Monthly Budget

Individual Reflection

• What are some ways you earn money or can earn money?

• How much money do you hope to save monthly?

• On a scale to from one to ten, how well do you think you will follow through using a budget?

Classroom Discussion

• What are some ways you earn money or can earn money?

• What are the expenses that you need to budget for?

• On a scale to from one to ten, how well do you think you will follow through using a budget?

Post-Test

1. What are the three keys to keeping a budget?

2. What are the two main categories of a budget?

3. What is the most important key to keeping a budget?

Review

1. Three keys to keeping a budget• Set goals• Create and modify your budget• Follow through

2. Two main categories of a budget– Income and Expenses

3. Most important key to keeping a budget– Follow through