Managing our personal money begins with determining the way we manage our expected and unexpected expenses and creating a balance between income and expenses. This section focuses on issues pertaining to daily budgeting through different exercises on how to create a monthly balance, how to manage income.
Read Rola's case study with students. Discuss with them the following questions:
- What is Rola's mistake?
- How should she have managed her finances?
- What measure could she take to handle her crisis?
Share the following questions with your students, and ask them to respond individually.
Then, collect the answers to analyze and discuss them with students with the purpose of shedding light on the importance of managing money and planning for the future since childhood.
You can also encourage students to have their parents and others in their surroundings to answer the mentioned questions to check the extent of their knowledge of managing money and planning for the future.Answer the following questions.
Do you get weekly or monthly allowance from your parents?
?Do you have any idea on what you will spend it
Do you remember how much you spent last week?
?Do you spend on luxuries before spending on basic needs
Do you take into account saving some money for emergencies?
It's research time!
Ask your family, friends, or anyone in your surroundings if they have monthly budget. Let them explain to you how they organize it.
Then, conduct a research to find examples of schedules you can use to make your personal budget.
This section has 2 components:
- How to manage your income.
- How to create your budget.
Then, in class, discuss with them the steps for financial management and planning.
Below are two case studies: one on how to manage one's finances and set priorities and another on how to prepare a budget.
Divide the class into two groups: Assign one case study per group.
Ask each group to:
- read the case study
- jot down the main ideas
- discuss the raised problematic
- suggest some solutions
- Prepare a presentation to open a discussion in class
Allotted time is 30 minutes.
Presentation time is 10 minutes.
First Case StudyPreparing for a Snow Trip
Fadi was the class representative at school. His classmates had elected him during the second trimester to represent them and voice their ideas and needs before the administration.
One day, Fadi decided to organize a trip before holidays. He met with his classmates and decided to go on a snow trip. So, he started preparing for the event as follows:
What kid of expenses do we need to organize the snow trip?
What is the sum of expenses?
How much should each student pay?
What are the possible solutions in case the expenses exceed the revenues?
These are the steps that Fadi followed.
The first step: What do we need for the outing and what are the expenses?
Bus or transportation costs: 300,000 L.L.
Food: 15 000 per student * 20 = 300 000 L.L.
Entrance fee to the ski slopes: 100 000 per student * 20 = 2 000 000 L.L.
Ski equipment rental: 50 000 per student * 20 = 1 000 000 L.L.
Ski instructor fees: 200 000 per student * 20 = 400 000 L.L.
Total expenses: 4 000 000 L.L.
The second step: how much money do we have?
To collect the money needed to cover the expenses, Fadi divided the total expenses between himself and his classmates, which means that he divided L.L. 4,000,000 among 20 students. Each student therefore had to pay L.L. 200,000.
Fadi collected the money, and it turned out that he still needed L.L. 200,000 because Lara and Omar were short of money and contributed with only L.L. 100,000.
So Fadi had three possibilities:
The first possibility: Lara and Omar did not go on the snow trip, which would reduce the expenses and the money would be enough.
The second possibility: he increases the fees per student.
The third possibility: he organizes an event to raise funds.
Aiding Material for the teacher: The case study
Second Case study
Determining our Priorities
Rola Dada owns a small coffee shop in Keserwan. She is a housewife and a mother of three children. Having been a widow for six years, Rola is the only bredwinner of her family; she is responsible for her kids' daily expenses, school fees, and so on.
Rola makes acceptable monthly profits from her coffee shop, ranging between 1,300 and 2,400 US dollars. Summer is the time when her coffee shop has the most crowd, which means the highest revenues.
In summer 2016, Rola Dada makes exceptional profits totaling around 3,500 US dollars monthly, yet around 11,000 US dollars between July and September. As such, after she calculates the needed household expenses, Rola manages to save 5,000 US dollars.
One day, she makes up her mind to buy a new car, so she sells her old car and pays a difference of 6000 US dollars, knowing that she has got a personal loan from the bank of 1000 US dollars at a 17% interest rate .
With the beginning of winter time, Rola is forced to close down the coffee shop for two weeks due to water leaks and heavy rain.
Worse still, she gets an unpleasant surprise with unexpected rise in school fees, totaling 20%. As a result, Rola is facing a crisis!
What is Rola's mistake?
How should she have managed her finances?
What measures should she take in order to overcome the crisis?
By the end of the work, ask students to evaluate their work through self-assessment. They will be asked to reflect on their learning journey, express their opinion, and make suggestions to improve the unit.
While each group is presenting its findings, ensure that their classmates are taking notes and preparing questions.
Allocate some time for students to comment on their classmates' presentations.
Assessing the Learning Journey
1- Ask students to write a short paragraph in which they highlight their key learning.
2- Ask students to fill in the attached assessment form.