- Every time I mention money, students for some reason start listening to what I'm saying.
- Budgeting is an important life-skill that I wish I would have learned and practiced repeatedly in school, and my students especially need to hear it.
- We've been talking about unit rates, and there are countless applications in budgeting. If rent is $800 for 1 month (unit rate), multiply by 12 months in a year to find what we'll pay annually.
- I didn't have to prepare much at all. Booyah.
But during the first class, a student commented, "So I could drop out right now and make $15,000?" which led to a good discussion about averages, since he probably wouldn't make that much right away, even if he was able to find a job as a 12-year-old.
...but yeah, you're right, you could drop out right now and over the course of your life you could earn about $15,000 each year, on average. You could earn more if you work hard, and earn less if you don't, but this is the average. That's a lot of money, right?
A few nods and "yeah"s. A hand in the air: "Well it's not a lot if you're old."
Did you just call me old? ...what do you mean, does the value of money change when you get older?
"There's more things you have to pay for. Bills and stuff."
Ahh, I guess you're right. With your groups, let's come up with a list of things you'd need to spend your hard-earned $15,000 on in order to survive.
There is no better feeling than walking around a room full of kids that are all falling into my trap of learning what I want them to learn, meanwhile they're all under the impression that they're the ones who came up with the idea.
I asked for a student to come up to the board and keep a list of everything we came up with, while students took turns sharing their ideas. "Shelter." "Food." "Water." "Light Bills." "Car." "Clothes."
Hmm, do you need clothes or do you want clothes?
"Need!" "Want!" "Both!"
What do you mean 'both'?
"Well, like, I need clothes, but I WANT cool clothes."
Ah, ok. Well, let's make another list of some of the things we want to spend our money on.
And so it went for a while. We came up with two nice lists. The Pre-AP class even added "charity" to their "Want" list. I got to drive home the point that we'll need to pay for all of the things on our "Need" list before we can think about looking at the "Want" list.
Another of my favorite moments in every class was when we got to discuss the big item missing from the "Need" list: taxes.
How much of your $15,000 do you think will go to taxes to pay for schools, roads, police, firefighters, and so on?
"$150?" More. "$200?" More. "$500!?" More. Alarmed looks: "$1000?"
It will probably be at least $2500 each year for taxes. It's not all that hard to do, but I love blowing their minds.
So we started our budget by listing the income, subtracting taxes and looking at our Net Income.
We worked out how to use unit rate to calculate yearly rent as a class, if we know how much we'll pay each month. I gave the students a few different choices for rent, depending on how nice of an apartment they want. After we subtracted rent from our net income, the amount left over was already looking tragically small.
Next, students worked in groups to come up with an annual food budget. Some students arbitrarily chose an amount for each month, while other students tried to figure out how much each meal would cost each day. In my Pre-AP class, one group was using $100 per month. I asked them what they would eat each day. When a few of the girls started listing off some meal ideas and recognizing that $100 wouldn't cut it, I asked another student what he would eat each day. "Lettuce."
Once they had an annual amount for food, students subtracted it from what they had left, and most had already run out of money.
Well we still haven't paid for the other things we need. What can we change? Can we get rid of the food? "No." Can we get rid of our apartment? "No." Can we just stop paying taxes? "No."
So what can we change?
"Income?"
What is something we could do to help change our income?
"More education."
In the Pre-AP class, students were asking a lot of questions about the different degrees listed on the chart. They asked about different professions and what kind of education they required. At the end of class we had time to summarize.
What are a couple things we can take away from this activity? Something you learned or something that surprised you.
"It's important so we can make sure we pay for the things we need so we can still do some of the things we want."
"We can appreciate what our parents do more and not get upset if they can't always give us everything we want."