Financial Literacy : Appreciation and Depreciation
Task
Modified budget
Students, in small groups, must integrate the payments of a student loan or credit card debt into a fictitious monthly budget.
- Provide each group with a balanced initial budget that includes income and a list of monthly expenses. This is an example of a balanced budget.
| Monthly Budget | |||
|---|---|---|---|
| Income | Expenses | ||
| Monthly Income | $720 | Phone | $65 |
| Clothing | $90 | ||
| Entertainment | $140 | ||
| Lunches (cafeteria) | $125 | ||
| Savings | $225 | ||
| Other | $75 | ||
| Total Income | $720 | Total Expenses | $720 |
- Provide students with a personal loan or a credit card debt, for example:
- A personal loan of $1,700 with an annual interest rate of 4.5%.
- A credit card debt of $450 with an annual interest rate of 20%.
- Using technology, students must choose one or two options for the loan term. They should propose two revised and balanced budgets, highlighting the advantages and challenges of each.
Reflection
- How will students integrate and apply their socio-emotional learning within this activity?
- How can I encourage students to engage in discussions about financial literacy to deepen their understanding and commitment to the task?
- What teaching strategies can be used to promote long-term financial ethics and responsibility amongst students?