How to Make a Budget

Creating a Budget

CLB Level: 3
Essential Skills Focus: Numeracy (estimating and adding)
Thinking Skills (Problem solving (discuss ways to save money)
Task:
-Create and understand their own budget
-Think about ways to save money
Purpose: Students will

• Learn budgeting skills
• Have an awareness of where their money goes

Materials: 2 worksheets provided
Learning Style: Auditory, visual
Time: at least 1 lesson / Method:

1. Introduce budgeting to students and the idea of keeping track of what we spend
2. Teacher could have students track their spending for

1 month prior to this activity (record their receipts and
monthly bills on a chart)

1. Discuss three aspects of a budget:

a)Essential Fixed Expenses (ex. rent)
b)Essential Variable Expenses (ex. food)
c)Non essentialExpenses (ex. magazines/coffee out)

1. Hand-out the first worksheet
2. Students fill-in their information (discuss how this information will be kept private from other people)

However, if students are uncomfortable using their
own information, you could give them an example
budget and costs to use

1. Students figure out how much money they have to pay monthly and how much money they have left for variable expenses and non-essential expenses
2. Hand-out worksheet 2

Students brain-storm ways to save money
Some ideas: water – take shorter showers
Electricity/heat – turn the temp. down at night, wear
a sweater in their home, turn TV/computers/lights
off when not being used
Shopping – compare prices, look at flyers, use coupons,
avoid brand names
Gifts – make gifts, give baked goods as presents
Follow Up: Have students record their expenses for 2 months. Encourage them to try and save a bit of money the second month. Have them compare their 2 months and see if the second month was less expensive. Students discuss ways they saved money.
Debrief/Transfer: Have them record other pieces of
data on a chart. (i.e. temperature for a month)

Name:Date:

How to make a Budget

What is your monthly income?
What is your weekly income?

Write down the payments you have to make each month. This number only changes slightly.

Fixed Expenses:

Rent/Mortgage
Insurance (car/house/life)
Property tax
Car payment
BusPass
Loans

Total fixed expenses

Write down the cost of variable expenses

Variable Expenses:

Food
Clothing
Entertainment
Money for family back home
Gas for car
Car maintenance
Manitoba Hydro: Electricity and Natural Gas
Water
Telephone/Internet/TV

Total Variable Expenses:

1. Divide by 4 (four weeks in a month)

This is the amount you must put away every week for fixed expenses.

2. Subtract the amount for fixed expenses from your take-home pay.

This is the money you have left for variable expenses(expenses that change from week to week).

Some examples are food, clothingand gas for the car.

Saving Money: Giving Advice

Luis wants to save money.

He is thinking about areas where he can save money.

Give Luis some advice for each area.

What can he do in each area to ‘cut costs’?

Discuss your ideas with a group.

Variable expenses /
Heating /
Clothing /
Grocery Shopping
Non-essential expenses /
Take-out food/eating out /
Gifts /
Candy

WinnipegSchool Division Adult EAL ProgramEssential Skill Focus: Numeracy / Thinking Skills

Author: Dayna GrahamCLB level: 3