Economics for Kids - Budgets - Online Games, Activities, Free Use K-12 Lesson Plans for Teachers Illustration

Economics for Kids
Budgets

For Kids:

A budget is a spending plan.

Any money you receive is income and can be included in your spending plan.

Budgets are flexible. They need to be altered as circumstances dictate. For example, you might have an allowance of $2 a week. But, if you get into trouble with your parents because you bought something with your own money that they said you absolutely could not buy, they might decide your punishment is that you will receive no allowance for one month. That means you have to adjust your budget because you are going to be short some money. On the other hand, you might receive some surprise birthday money from an aunt or an uncle. You can choose to save it. Or, you could add it to your budget.

Budgets help you make good spending decisions. Budgets help you make ends meet if you have monthly bills to pay.

For Kids - Free, Online, Interactive

Balance My Budget Game

Budgets, Budgets, and More Budgets - Flash Cards, Concentration Game, Matching Game, Word Search Game

Budget Interactive Games

See Also: Economic Games for Kids

For Teachers - Free Use Lesson Plans and Classroom Activities

The Budget Game (Donn): First talk about minimum wage. Tell your students that we are assuming for the moment that your job is paying minimum wage. If they don't know what minimum wage is or what the current minimum wage is  in their state, simply tell them. Don't waste time on it. Mention that they will be working up to 40 hours a week, but you can work less if you choose. Take a moment to do the math with them - how much they earn each week based on 40 hours, minimum wage, and how much is that each month based on four weeks in a month, and don't forget about taxes (explain taxes vary but use 10% for quick math.)

Now that we know how much you will earn approximately, what do you need to budget for each month? (Do not talk about need vs. want here. Hold that for the end.) Ask the kids for some options - i.e.: housing, food, utilities, internet, clothes, car payment. Make sure each student has paper, pencils, calculator (optional). Tell your students they can use the income we created in class, or create your own if you are working less than 40 hours a week. Let me know if you need help. Then challenge your students to create their list, assign costs to each item, and budget their income to cover their expenses.

Give them some time. Then ask for volunteers to identify their budget. What did they forget? (Kids often forget food.) Depending upon time, you can always bring up alternatives, such as the food bank vs. the grocery store or buying on sale with coupons. (What is a food bank, and who is eligible.) Or perhaps car pooling to save on gas (also often not budgeted.) Or taking the bus. It sounds simple but it's really a lot of fun.

After two students have shared their list, talk briefly about needs and wants and the importance of making smart financial decisions, especially when it comes to wants, as well as the importance of savings.

I like to end this lesson with a statement such as: "Obviously, our budget is tight. What can we do to earn more money without losing our job or committing a criminal act? (They usually giggle at that, but come up with some interesting ideas, such as dog walking or dog playtime for people who want their pets to play, but haven't the strength or time themselves to do it. Distributing flyers advertising various services such as car washing or car detailing in their driveway. One girl said a monthly yard sale using items found in peoples trash that they are throwing away.)

More Lesson Plans

The Budget Game (for the classroom)

Making a Budget lesson plan

Build Your Own Budget with student worksheets

A budget worksheet (free from TPT)

See Also:

Personal Finance (Donn)

Economics For Kids Lesson Plans and Classroom Activities

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