Activity: "Budgeting for a Classroom Event"

Objective:

 Teachers will learn how to create and manage a budget.

 Teachers will understand the importance of balancing income and expenses.
 Teachers will develop skills to teach financial literacy concepts in a practical, real-
world context.

Step-by-Step Instructions:

Step 1: Introduction to Budgeting (10 minutes)

 Start by explaining what a budget is: A budget is a plan that helps track and manage
income (money coming in) and expenses (money going out).
 Discuss the importance of budgeting in personal and professional life. Relate it to the
teachers' experiences (e.g., planning a classroom event, managing supplies, or
organizing school trips).

Step 2: Scenario Overview (5 minutes)

 Present a scenario to the teachers: They are planning a classroom event, such as a
field trip, a holiday party, or a project fair. They need to create a budget for this event.
 Provide the following types of information (either on the board or printed on cards):
o Income: How much money they have available to spend. For example, the
school has allotted $500 for the event.
o Expenses: Various potential costs for the event, such as transportation, snacks,
decorations, supplies, and guest speakers.

Step 3: Group Budget Creation (20 minutes)

 Divide the teachers into small groups (3-4 people). Each group will use the budgeting
template (either handout or digital) to create a budget for the classroom event.
 Groups will need to allocate the available income to cover different categories of
expenses (e.g., transportation, food, materials, etc.), making sure their total expenses
do not exceed the income.

Step 4: Discuss Key Budgeting Principles (10 minutes)

 Once the groups have created their budgets, have them discuss the following
principles:
o Balancing income and expenses: Ensuring the total amount spent does not
exceed available funds.
o Prioritization: Deciding which expenses are necessary and which can be
adjusted or eliminated to stay within budget.
o Unexpected costs: Discussing the importance of planning for contingencies or
having a small "buffer" for unforeseen expenses.
Step 5: Review and Reflection (10 minutes)

 Have each group share their budget with the larger group.
 Discuss the challenges they faced when making decisions about where to allocate
money and how they approached prioritizing expenses.
 Reflect on how the principles of budgeting in this activity can be used to teach
students about managing money in their own lives (e.g., using a budget to plan for a
personal event or savings goal).

Step 6: Closing (5 minutes)

 Summarize the key points learned about budgeting and financial planning.
 Provide teachers with additional resources or materials for teaching financial literacy
to their students (e.g., age-appropriate activities, lesson plans, or online tools).

Variations:

 Digital Budgeting Tools: Introduce teachers to free online tools like Google Sheets,
Excel, or specific budgeting apps (e.g., Mint or YNAB), which they can also use in
the classroom with students.
 Extended Scenario: Introduce more complex scenarios, like handling a school
fundraising event or planning a long-term savings project for the class (e.g., saving for
a field trip throughout the year).
 Personal Financial Reflection: After the activity, ask teachers to reflect on their own
financial habits and how they can incorporate financial literacy into their teaching.

This activity will help teachers practice budgeting in a practical way while also giving them
the tools to teach students about managing their own finances effectively.
Activity: "Create a School Budget Plan"

Objective:

 Teachers will learn how to create and manage a budget, enhancing their financial
management skills..
 Teachers will understand the importance of balancing income and expenses.
 Teachers will develop skills to teach financial literacy concepts in a practical, real-
world context.

Materials Needed:

 Laptop or paper and pens

 Excel spreadsheet template (or a similar tool for budgeting)
 Sample financial data (either real or hypothetical)
 Guidelines for a budget (e.g., income, expenses, savings, and investments

Instructions:

Step 1: Introduction (15 minutes)

 Briefly explain the basics of financial management, including income, expenses,

savings, and the importance of budgeting.

Financial management involves planning and controlling your finances to ensure

stability and growth. Here's a brief overview of its key components:

1. Income: This refers to the money you earn, such as wages, salary, business
profits, or investments. Managing your income involves knowing how much you
receive and ensuring it covers your expenses and financial goals.
2. Expenses: These are the costs associated with living, such as rent, utilities,
groceries, and other personal or business-related spending. Controlling expenses is
critical to ensuring you're not overspending relative to your income.
3. Savings: Saving involves setting aside a portion of your income for future needs
or emergencies. It’s a key element of financial security, providing a safety net for
unexpected expenses or future goals like buying a home or retirement.

 Provide an overview of how schools or classrooms may manage finances, e.g.,

budgeting for resources, planning for events, or allocating funds for special programs.

Step 2: Scenario Setup (10 minutes)

 Divide the teachers into small groups.

 Each group receives a financial scenario (e.g., a school or a classroom with a limited
budget). This could involve balancing a budget with competing needs, like purchasing
materials, planning an event, or paying for guest speakers or activities.
 Example scenarios:

1. Classroom Budget: You are given a budget for the classroom supplies,
educational tools, and organizing a field trip.
2. School Event Budget: Plan a budget for an end-of-year event with expenses
such as venue, catering, transportation, and entertainment.
3. Program Budget: Allocate funds for a professional development program for
teachers while considering other financial commitments.

Step 3: Budget Planning (30 minutes)

 Each group will create a budget using the provided scenario.

 They will:
o Determine the income or available budget.
o List the expenses: categories might include supplies, staff training,
technology, etc.
o Allocate funds based on priorities and goals.
o Plan for savings or emergency funds, if necessary.
 Encourage teachers to use tools like Excel for planning (or you can provide a simple
template with columns for categories, amounts, and totals).

Step 4: Reflection and Discussion (20 minutes)

 Have each group present their budget plan to the rest of the teachers.
 After each presentation, facilitate a discussion on how different approaches were used
to balance the budget, what challenges were faced, and how they managed limited
resources.
 Ask questions like:
o How did you prioritize your expenses?
o What did you include for unexpected costs?
o How do you ensure the budget is sustainable long term?
o How did you manage potential trade-offs between different needs?

Debrief (10 minutes)

 Summarize key takeaways about budgeting and financial decision-making.

 Discuss the importance of planning, tracking expenses, and adapting to changes.
 Emphasize that the skills learned can be applied not only to school budgeting but also
in personal finances and future classroom management.

Optional Extension Activity:

 After the workshop, give teachers a personal finance task where they create a budget
for their own household or a hypothetical situation, comparing it to their school
budget plan. This helps them relate personal financial management with what they’ve
learned.
This activity not only helps teachers grasp the essentials of financial management, but it also
demonstrates how these skills are applicable in both professional and personal contexts.

Budgeting and financial decision-making are essential skills for achieving financial stability
and reaching long-term goals. Here are some key takeaways:

1. Establish Clear Financial Goals

 Define short-term, medium-term, and long-term financial goals (e.g., saving for a vacation,
buying a house, or retirement).
 Prioritize goals based on importance and urgency to direct your financial resources
effectively.

2. Create a Realistic Budget

 List your income and all expenses, categorizing them into fixed (e.g., rent, utilities) and
variable (e.g., groceries, entertainment).
 Use the 50/30/20 rule as a guideline: 50% of income goes to needs, 30% to wants, and 20%
to savings/debt repayment.

3. Track Spending Regularly

 Regularly review and track spending to ensure it aligns with your budget.
 Use tools (apps or spreadsheets) to monitor progress and adjust if necessary.

4. Emergency Fund is Crucial

 Aim to build an emergency fund with 3–6 months’ worth of living expenses.
 This provides a financial cushion for unexpected events (e.g., medical emergencies, job loss).

5. Distinguish Between Needs and Wants

 Prioritize essential expenses (needs) over discretionary spending (wants).

 Reevaluate your wants regularly and assess if they align with your financial goals.

6. Pay Off High-Interest Debt First

 Prioritize paying off high-interest debts (e.g., credit card debt) to reduce the financial strain
and prevent debt from snowballing.
 Consider strategies like the debt snowball (paying off smaller debts first) or the debt
avalanche (tackling higher-interest debts first).

7. Invest Early and Consistently

 Start investing as early as possible, even with small amounts, to take advantage of
compound interest.
 Choose investment vehicles that align with your risk tolerance and financial goals (e.g.,
stocks, bonds, retirement accounts).
8. Avoid Lifestyle Inflation

 As your income increases, resist the urge to increase your spending proportionately.
 Save or invest the extra income to continue building wealth.

9. Regularly Review and Adjust Your Plan

 Life circumstances change (e.g., new job, family changes, market shifts), so it's essential to
revisit your budget and financial plan regularly.
 Adjust your budget to accommodate any significant life events or financial changes.

10. Make Financial Decisions Based on Long-Term Impact

 Avoid making financial decisions based on short-term emotions or impulses.

 Evaluate purchases and investments based on how they align with your long-term financial
health.

11. Use the Power of Automation

 Automate savings, investments, and bill payments to ensure consistency and reduce the
temptation to spend what you should be saving.

By applying these principles, you can make more informed financial decisions that support
your immediate needs and long-term aspirations.

Budgeting Handout: How to Create a Personal Budget

Why Budgeting is Important

A budget is a financial plan that helps you manage your income and expenses, ensuring that
you live within your means, save for future goals, and avoid unnecessary debt.

Steps to Create a Budget:

1. Track Your Income

List all sources of income you receive monthly, such as salary, freelance work,
passive income, etc.
2. List Your Expenses
Break your expenses into two categories: Fixed and Variable.
o Fixed Expenses: Rent/mortgage, utilities, subscriptions, insurance.
o Variable Expenses: Groceries, entertainment, transportation, eating out.
3. Set Savings and Debt Repayment Goals
Decide how much you want to save each month for goals like an emergency fund,
retirement, or large purchases. Include debt repayment as a part of your budget.
4. Create Your Budget
Add up your total income, and then subtract your expenses and savings goals. This
will help you see where you can adjust your spending if needed.
5. Monitor and Adjust
Review your budget regularly (weekly or monthly) to ensure you are on track. Adjust
your spending as necessary to meet your goals.
Activity 2

Budgeting Template:

Below is a simple monthly budgeting template you can use.

Category Budgeted Actual Difference (P)

Income Amount (P) Amount (P)
Salary/Other Income
Freelance/Side Income
Total Income
Expenses
Fixed Expenses
Rent/Mortgage
Utilities (Electricity, Water,
etc.)
Insurance (Health, Car, etc.)
Subscriptions (Streaming,
etc.)
Total Fixed Expenses
Variable Expenses
Groceries
Gas/Transportation
Entertainment/Leisure
Dining Out
Miscellaneous
Total Variable Expenses
Savings & Investments
Emergency Fund
Retirement Savings
Other Savings Goals
Total Savings &
Investments
Total Expenses & Savings
Net Income (Income -
Expenses - Savings)

 Be Realistic: When creating your budget, ensure your numbers reflect your true
spending habits.
 Prioritize Savings: Treat your savings as a non-negotiable expense and pay yourself
first.
 Use Technology: Digital tools like Mint, YNAB (You Need a Budget), or Google
Sheets can make budgeting easier and more accurate.
 Track Regularly: Review your budget at least once a month to track your spending
and adjust if necessary.