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Family Budget Creation Project

Collaborative project where students create realistic family budgets using case study scenarios

Duration

75 minutes

Group Size

Small Groups

Subject

Budgeting

Activity Type

Collaborative Project

6.EDM.5

Learning Objectives

  • Apply budgeting concepts to realistic family scenarios
  • Make informed decisions about needs versus wants
  • Practice collaborative problem-solving and decision-making
  • Understand the importance of staying within budget limits

Materials Needed

Essential Materials:

  • • Budget templates and worksheets
  • • Calculators for each group
  • • Family scenario materials
  • • Expense category cards

Optional Materials:

  • • Budgeting video: "Budgeting for Kids!"
  • • Chart paper for presentations
  • • Colored markers for categorization
  • • Digital budget templates

Activity Procedure

Step 1
Budget Review (15 minutes)

  • • Review budgeting concepts from previous grades
  • • Define key terms: income, expenses, needs, wants, savings
  • • Watch budgeting video: "Budgeting for Kids!"
  • • Discuss budget purposes and benefits

Step 2
Case Study Introduction (20 minutes)

  • • Present family scenario with given income and expenses
  • • Family of four planning vacation with $2,000 budget
  • • Include various expense categories and options
  • • Explain constraints and requirements

Sample Family Scenario:

The Johnson family (2 adults, 2 children) is planning a week-long vacation with a budget of $2,000. They need to allocate funds across different categories while ensuring they don't overspend.

Required Expenses:
  • • Transportation to destination
  • • Accommodation for 6 nights
  • • Meals for family of 4
Optional Expenses:
  • • Entertainment and activities
  • • Souvenirs and shopping
  • • Emergency fund

Step 3
Collaborative Budget Creation (30 minutes)

  • • Students work in groups to create family budget
  • • Allocate funds across different categories
  • • Make decisions about needs vs. wants
  • • Calculate remaining funds or identify overspending
  • • Adjust allocations to stay within budget

Step 4
Budget Presentation and Analysis (10 minutes)

  • • Groups present their budget decisions to class
  • • Compare different approaches to spending
  • • Discuss trade-offs and decision-making processes
  • • Identify strategies for staying within budget

Budget Categories

Essential Expenses

  • • Transportation: Gas, flights, car rental
  • • Accommodation: Hotel, vacation rental
  • • Food: Restaurants, groceries, snacks
  • • Emergency Fund: Unexpected expenses

Optional Expenses

  • • Entertainment: Activities, attractions, shows
  • • Souvenirs: Shopping and gifts
  • • Upgrades: Better accommodation, premium activities
  • • Convenience: Extra services, time-savers

Assessment Criteria

Budget Accuracy (30%):

  • • Mathematical calculations are correct
  • • Total expenses do not exceed budget limit
  • • All required categories are addressed
  • • Realistic cost estimates for each category

Decision-Making Process (30%):

  • • Clear reasoning for allocation decisions
  • • Appropriate distinction between needs and wants
  • • Consideration of trade-offs and alternatives
  • • Evidence of thoughtful prioritization

Collaboration (25%):

  • • Equal participation from all group members
  • • Respectful discussion and compromise
  • • Effective problem-solving as a team
  • • Shared responsibility for final decisions

Presentation Quality (15%):

  • • Clear explanation of budget choices
  • • Organized presentation of information
  • • Ability to answer questions about decisions
  • • Professional presentation of budget document

Extension Activities

  • • Create budgets for different family sizes and income levels
  • • Research actual costs for vacation destinations
  • • Compare budget vs. actual expenses for real family trips
  • • Design a personal savings plan for a desired purchase
  • • Explore digital budgeting tools and apps
  • • Interview family members about their budgeting strategies

Real-World Connections

Connect to Student Lives:

  • • Discuss how families make budget decisions at home
  • • Explore how students can contribute to family budgeting
  • • Connect to personal allowance or spending money management
  • • Discuss the importance of financial planning for future goals
  • • Explore cultural differences in family financial decision-making