- Analyze how changes in circumstances can affect a personal budget.
- Watch Video 3.1
- As you watch the video, record the missing words from pages 61-62 of the Chapter 3 Textbook as they pop up on the left side of the video screen by filling in this form. (pages 61-62).
- Discussion Questions
- Have you ever written a budget?
- You have heard Dave say that personal finance is 20% head knowledge and 80% behavior. Explain how this relates to budgeting.
- Some Americans believe that a credit card is safer for purchases than a debit card. Explain why that is a money myth?
- Explain how budgeting helps you save money.
- Describe the ways in which having an agreed-upon budget can improve a relationship.
- Have you ever witnessed money affecting a relationship close to you?
- Make a copy of this Google Document, rename it Family Reality-(Your Initials), and move it into your Chapter 3 folder.
- Obtain your assigned group from your teacher.
- Your group will be assigned a unique family make-up, annual income and budget situation. Use the Family Reality document to keep track of your “family.”
- 2 parents (ages 26 & 28), 3 children (twins: 4, 6); $40,000; unexpected bills: $600 auto repair, $500 eye glasses for the twins
- 2 parents (ages 24 & 25), 1 child (age 3), one dog, one cat; $55,000; unexpected bills: $954 auto repair, $70 restaurant bill, $55 auto license renewal
- 2 parents (ages 35 & 36), 2 children (ages 5, 7), one dog; $45,000; unexpected bills: $800 replace freezer, $80 medical prescription, $150 vet bill
- 2 parents (ages 44 & 48), 3 children (ages 19, 16, 14); $50,000; unexpected bills: $600 auto repair, $250 eye glasses, $40 medical perscription
- Single parent (age 42), 1 child (age 18), one cat; $65,000; unexpected bills: $954 auto repair, $70 restaurant bill,$150 vet bill
- Single parent (age 24), 2 children (ages 1, 3); $70,000; unexpected bills: $600 auto repair, $250 eye glasses, $40 medical perscription, $145 repair broken window
- 2 parents (ages 38 & 39), 4 children (ages 8, 10, 15, 17), one dog; $30,000; unexpected bills: $800 replace freezer, $30 medical perscription, $150 vet bill, $35 flat tire repair
- Complete the following:
- Choose a family name and names for each family member.
- Obtain your annual income from your assigned group number above. (Remember, this is the TOTAL income for family) Use this amount to determine your monthly income. Take this number times 80% (0.80) to identify what your net pay will be. The first 20% (0.20) of your income goes to income taxes.
- Work with your group to create a budget based on the needs of the family by utilizing the budget tool at this link. You must account for every category that would apply to your family situation. Once you have a budget you all agree upon, send the budget to one of your members. That member will then forward it on to the other group members as well as your teacher.
- Check with your instructor.
- In your Personal Finance Journal-C3 file in your Chapter 3 folder, complete the next row in the table by answering the question listed.