Middle School Resource

Where Does It Come From? Where Does It Go?

Objectives:

In this activity, students will

• Gain an awareness of how work relates to providing for the needs and wants of a family.
• Be able to prepare a balanced monthly budget that provides for the needs and wants of the individual.

Activity:

• Students brainstorm how people support themselves financially.
• Teacher explains the purpose and basic components of budgets.
  • Food
  • Housing
  • Clothing
  • Utilities
• Students brainstorm other expenses they might need or want to include in a monthly budget.
• Students are divided into small groups to work on budgets. Each group is given a different situation (e.g., number of children, if any; amount of monthly paycheck after taxes) to use in creating a monthly budget.
• Students are provided with resources to use in determining their budgets.
  • Grocery ads
  • Clothing ads
  • Classified ads indicating various rents or mortgages
  • Cost information from local utilities
  • Internet sites with prices for various items (e.g., Peapod for groceries, clothing companies)
• Groups work to create monthly budgets based upon their resources and personal situations.
• Students present their budgets to the class, discussing each component.
• The class discusses the reasons for any variations. Teacher instructs students on how individual banking accounts, both checking and savings, work.
• Teacher explains how to write a check.
• Students are given blank, mock checks to use in “making their monthly payments.”

Related NY State Academic Standards: W.7.7, W.7.11, CDOS.I.1.1.A, and more!

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