Big Idea:

Demonstrate the knowledge and skills needed to make informed financial decisions (Financial Management section - Grade 5)

Expectations:

• F1.3: Design sample basic budgets to manage finances for various earning and spending scenarios.

• F1.4: Explain the concept of credit and debt and describe how financial decisions may be impacted by each (minor focus)

Materials

• Budget handouts + case studies (see printable lesson plan)

• Exit ticket (see printable lesson plan)

• Google Forms: https://docs.google.com/forms/d/1wsSnWpkPNyVQF1GM-KX0cbdVcui8iN0r63fqj9i-1yo/copy

• Google docs for collaborative sharing

Prior knowledge

Building on Grade 4:

Students may need review of:

• • Goods and services (money concepts)

  • Reasonably priced (consumer and civic awareness)

Students may not have heard of the concept of a budget before

Students will have a variety of experiences with money (none, allowances, part time jobs etc).

Goal: To create a budget for Danika or Jamie based on their planned earnings and predicted spending (what they plan to use their money for during a month).

Tasks: Using the blank budget form, create a plan for saving / spending money for a month in the life of Danika or Jamie.

Step 1:

• Working independently or in pairs (for physical distancing students can use a shared document option in google docs) students pick 5 or more spending / saving categories from their own ideas or the class generated list (above).

Step 2:

• Pick the scenario about focusing on either Danika or Jamie (incomes of either $150 or $130).

• Students create budget amounts for each category the class generated (see budget handout example).

  • ***A discussion may be needed (during consolidation) about a budget having expenses that are greater than earnings.

Step 3:

• Total up spending / saving for the month.

Step 4:

• Send a photograph of your budget handout to the teacher or if using google docs share the file with your teacher.

Done Early:

• For students done early, they could create a 3rd scenario about an imaginary student situation. Think of 1) what they do to earn money and 2) spending / saving categories and create a budget for their scenario.

After: Whole Group Consolidation and Practice (10-15 minutes)

1. Student Sharing:

   • Using the photographs of student created budgets, share budgets to smart board screen / each other’s iPads etc.

   • Students can share their categories, budgeted amounts, totals and extra money (if any).

   • Ask:

     • What stands out to you about this budget?

     • What is this person saving for?

     • Do they have any leftover money at the end of each month?

     • Optional: What percent is savings / vs spending?

2. Consolidation

   • Big Ideas

     • Your income determines how much you can spend and save.

     • Decisions have to be made between immediate spending (including impulse buying) and saving to spend later (planned spending).

     • Budgets are different for people of different ages and stages in life.

     • Not following a budget can lead to spending too much money in one area when money is needed in another area.

       • Example: money spent on movies / books, no money left for gas for a quad.

Closing / Exit Card Question

Exit Card:

• Jessica and Mark are parents of 3 children. Together, Jessica and Mark have a monthly budget of $6000. Jessica works as the manager of Scotiabank. Mark is a nurse at the hospital.

• Instead of following the budget and saving a little each month, Jessica and Mark ignored their budget and used most ($4,500) of the entire month’s budget to buy a used fishing boat.

• List 1- 2 problems or consequences they will have from their choice buying a fishing boat.

1)

2)

After: Independent Consolidation

Challenge questions (discussion)

These questions can be given out as a google forms assignment with a follow up discussion for another math class. Alternatively you could discuss these questions as a whole class.

The purpose of these questions is to give teachers an idea about what financial perspective each student has… to direct math talks around areas needing more improvement or insight

https://docs.google.com/forms/d/1wsSnWpkPNyVQF1GM-KX0cbdVcui8iN0r63fqj9i-1yo/copy

• • Do you have to pay your parents for electronics (buying the device, monthly fees, games, music)?

  • Do you spend money on video games?

  • Who pays for buying your clothes?

  • What are three spending or saving categories a teenager might need in their budget?

  • What are three spending or saving categories a college student might need in their budget?

  • What are three spending or saving categories an adult might need in their budget?

  • What are three spending or saving categories a grandparent might need in their budget?

  • At what age should a person start saving up for college or university?

  • List 3-5 items you have purchased lately?

  • Estimate how much money you think a teenager could earn in one month working at Giant Tiger?

  • Estimate how much money you think a college student could earn in one month working at Boston Pizza?

  • Estimate how much money you think a plumber could earn in one month?

  • Estimate how much money you think a nurse could earn in one month working at the Timmins hospital?

Possible Lessons to Follow

• Earning - Careers: The google form questions will give the teacher some feedback for student knowledge of careers and income.

• Debt / credit: Budgeting flows well into a discussion / learning to follow about debt and use of credit, vs. savings and living within an income (wise and unwise purchases)

• Budgeting for other ages or stages in life.

• More in depth look at sample budgets (that adults might use).

• Finding percents through budgets (savings vs spending; earning vs spending, spent vs left over).