Activity 3: Yearly budget (Commerce)
1. PLAY the video segment
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In the video, Tye is short of money and he says he will use Nik's kitty money.
Later, Tye had his credit card cancelled because he could not make the repayments. |
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You may have been caught out in the Money Stuff Challenge when you bought a car and found the insurance, registration and running costs were more than you'd bargained for.
2. DISCUSS: Do you know of people who have been caught out by phone bills they can't afford or credit card debt that costs them more and more each month? What unexpected events can throw a person's budget?
One way to plan your budget is to make sure all the expenses you will have over a yearly period are known. And one way to deal with unexpected events is to have savings to cover you. To have savings for this purpose you need to prepare a yearly budget.
3. With a partner, PREPARE a budget using the table below. You can find it in the PDF Yearly budget.
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INCOME |
Weekly |
Monthly |
Yearly |
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Wages |
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Austudy |
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Parents |
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Other |
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TOTAL INCOME |
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HOUSE EXPENSES |
Weekly |
Monthly |
Yearly |
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Rent |
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Telephone |
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Water |
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Electricity |
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Gas |
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Other (eg TV rental) |
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CAR/BIKE EXPENSES |
Weekly |
Monthly |
Yearly |
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Registration |
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Licence |
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Insurance |
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Repairs and maintenance |
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Petrol |
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FOOD EXPENSES |
Weekly |
Monthly |
Yearly |
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Kitty |
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Eating out |
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Other |
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CLOTHING EXPENSES |
Weekly |
Monthly |
Yearly |
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Clothing |
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Shoes |
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Laundromat |
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PERSONAL EXPENSES |
Weekly |
Monthly |
Yearly |
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Store card |
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Credit card |
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Car loan |
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Other loans |
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Internet ISP |
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Education fees |
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Papers/magazines |
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CDs |
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Entertainment |
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TOTAL EXPENDITURE |
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SAVINGS
(income minus expenditure) |
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This activity can be found in the NSW Money Stuff Teacher resource book – Commerce page 44 .
Explore additional learning activities (which include extension and revision tasks) in the print resources section under Print resources - Victoria.
Linked Learning Outcomes - NSW
Core Part 1.2 Personal Finance
Focus: Students develop knowledge, understanding and skills that assist them to achieve financial independence by developing the ability to make informed judgements and to make effective decisions regarding the use and management of money.
Students learn about: Managing finances.
Additional content: Option 5 – Towards Independence
Students learn about: Managing finances.
Outcome LS.3:
Students learn about: Obtaining and managing finances.
Learning Outcomes – Victoria
Victorian Essential Learning Standards (VELS) Discipline-based learning
Domain: The Humanities - Economics
Dimension: Economic knowledge and understanding
Level 5
Students explain the nature of the economic problem and how economic choices involve trade-offs that have both immediate and future consequences.
Students make informed economic and consumer decisions, demonstrating the development of personal financial literacy.
Level 6
Students discuss and explain what it means to be an ethical consumer and producer and identify examples of ways values can affect the economic decision making of consumers, producers and governments.
Students explain the role and significance of savings and investments for individuals and for the economy, and demonstrate the skills required to successfully plan and manage personal finances.
Learning Outcomes - Western Australia
(Society & Environment)
R 4.2 Understands that people make decisions in order to be efficient and enterprising in their use of resources.
NSS 4.3 Understands that people respond to changes by making decisions about the production, distribution and exchange of goods and services.