A family can have several sources of income, one must know how to create and plan on focusing on fulfilling one needs more than wants. Each individual or family may have different needs and wants. It is essential to build a budget to track one’s income and expenses. Budgeting helps one plan their income in a better manner such that they are able to save some money for future. Income, spending and budgeting may at times influence our choices/ aspirations and actions we want to take to fulfil these aspirations.
A budget is a plan for how to spend and save your money. A monthly household budget helps to make sure availability of enough money to pay for things we need like rent, groceries, and electricity. It also helps to think about how to spend money on things we want like cable television. or having a pet. Through this activity we experience the important first step of experiencing how to make a budget.
- Students will be able to comprehend the relationship between source of income and expenditures.
- Students will be able to identify components of budgeting while creating budget for their family.
- Students will be able to describe the components of creating budget for their family in their own words.
- Skills - Active listening, and logical thinking.
- Values: Responsibility, Saving
|S. No.||Session Details||Estimated Time Required|
|1||Step 1: Instructions (8-10 mins)
Step 2: Activity (As HW in Diwali Break)
Step 3: Debrief (8-10 mins)
Pen and paper
Step 1: Instructions
Time: 8-10 minutes
Teacher will give instructions to do this activity during the Diwali Break at home.
1. Ask the students to look into the source of their family income, how many of them are earning and spending in a month? Estimate how much you think your family spends in a month. Make a note of it.
|Earning Members in Family||Estimated Income||Estimated Spends of entire Family|
2. Tell students to observe and list down how much their parents/family spend daily for a week and discuss with them about other expenses family has, list down everyday expenses. Think which expenses are essential. (The family cannot do without these) Also, observe which were the expenses that are not essential but bring comfort and are important.
3. Next task is to prepare to create an ideal budget for family as per them keeping in mind the source of the family income, needs and wants. Represent it in form of a table. Show this table to their parents and take their views.
Month of: ______________ Income: _________________
Figure out the monthly cost of things you need. (basic needs)
List down the monthly cost of things you want.
|1. Bills/Expense - Needs||Estimated spends for month in Rs.|
|1. Bills/Expense - Wants|
|Eg. Going out to eat|
Note: Teacher can also ask students to compare the estimated spends, actual spends and budget estimates (optional)
Debrief (After the HW is done)
Estimated Time: 5-8 mins
Ask students the following questions to debrief the activity:
- What did you learn from the activity?
- What is the relationship between income and expense?
- Why is it important to keep track of your expenses?
- How was the experience of creating a budget for your family? Why is it important?
- How do you think the Local government make budget?
Reflection Sheets, Activity Report & Feedback Form
Teachers kindly fill in the feedback form, remind office bearers to fill activity report and remind students also to fill up the reflection sheets.