Budgeting Activities for Students

A weekly budget with a decision to make

This activity helps students compare income and expenses, calculate Remaining and explain a change to their plan. Use the fictional amounts below in a classroom, a small group or a family discussion. All amounts are in money units.

Students need paper or a document to record their reasoning. Start with the same scenario, then compare how different choices affect the budget.

Income

40 units

Expenses

30 units

Remaining

10 units

The planned expenses are 12 for transport, 10 for lunch and 8 for an optional purchase. Remaining is income minus expenses: 40 - 30 = 10.

Activity 1: explain the starting plan

1. List the income and each expense. Check the total and calculate Remaining.
2. Explain which expenses the student would prioritise and why. Identify anything the scenario does not tell us.
3. Compare two plans: make the optional purchase now, or postpone it. What does each choice make possible?

Ask students to explain their assumptions. Whether an expense is essential can depend on the person and the situation.

Activity 2: respond to an unexpected expense

An essential expense of 14 arrives. Keeping the original plan means expenses of 44 and Remaining of -4. Postponing the optional purchase reduces expenses to 36 and changes Remaining to 4.

Ask: what would the student change, what would they give up, and why? Introduce opportunity cost when discussing the option they forgo.

For a further challenge, say the income arrives on Friday but transport is needed on Monday. Ask students to draw a timeline and identify what must be resolved before the week starts. A positive total does not show when money is available.

Copyable budget worksheet

Copy these prompts into a document or onto paper. Complete a starting plan and a revised plan using the fictional scenario.

1. Income: amount and date it arrives.
2. Expenses: each item, amount and date it is due.
3. Remaining: income minus total expenses.
4. My change: what I would postpone, reduce or reconsider.
5. My reason: the trade-off and what would make me change my mind.

Use fictional information throughout; students can practise the reasoning without sharing household finances. This page does not save answers.

Review the reasoning and connect it to a lesson

Check that the income and expense totals agree with Remaining, that the revised plan includes the unexpected expense, and that the explanation names a real trade-off. Discuss how a different payment date would affect the plan.

The Budgeting and Cash Flow lesson develops these ideas through a budget simulation and Cash Flow Snapshot. Browse the wider Personal Finance module or read the Budget explanation.

For enterprise learning, try the student business-plan template.

Take the learning further

Explore school programmes or learning for teens and families.

Choosing for a school? Use the programme comparison guide.