Name of lesson: Savings, budgets, income and expenses
Grade 7: Term 2 Subject: Economic and Management Sciences Curriculum Standards: (CAPS) Grade 7 Economic and Management Sciences Term 2 CAPS requirements Knowledge Skills Grade 7 Term 2 Net worth Following instructions. Financial Literacy. Concept of a budget Define the vocabulary Definition of a budget. words. Income and expenditure Income, expenditure and Look up the meaning of Vocabulary unknown terminology personal budget. using a dictionary. Calculate a person’s net worth. Work out the income and expenditure examples. Create a budget layout. Plan a budget. Resources Dictionary, worksheet, calculator, YouTube videos – ‘How to Create a Simple Budget’ http://www. youtube.com/watch?v=JVXQ51nmLoc or ‘How to Create a Simple Budget’ (using the envelope system) http://www.youtube.com/watch?v=m9cX4M2kfMg Objectives Learners will: • Become familiar with budget concepts by working out their net worth • Calculate income and expenditure and learn to tell the difference • Create a budget layout as well as a budget for themselves Background This lesson begins by getting the learner to think about their ‘net worth’, which is an accounting term. They progress to think about income and expenditure which ultimately leads to the idea of a budget – a statement of expenditure and income. Vocabulary net worth, income, expenditure, budget, assets, liabilities, calculate, value, statement Teacher preparation before starting Before teaching this activity, ensure that you are familiar with the definitions and the concepts and that you have worked out the answers to the questions. Look through the suggested YouTube videos and see if you would like to you any of them. Teaching the Activity Begin by introducing the idea of budgeting by means of a short YouTube video to set the scene: ‘How to Create a Simple Budget’ http://www.youtube.com/watch?v=JVXQ51nmLoc or ‘How to Create a Simple Budget’ (using the envelope system) http://www.youtube.com/watch?v=m9cX4M2kfMg. This is mainly to get the learners thinking about how to make sure money lasts, but it can be used to extract some of the meanings of the vocabulary for this lesson. Main Activity Discuss the various vocabulary terms listed under ‘vocabulary’ that that will be used in this lesson, and find out which ones the learners know. Reinforce the vocabulary words that the learners do not know. The learners work on Activity 1: ‘Work out Sipho’s net worth’ on the provided worksheet writing their answers in their class work books. Learners begin with the concept of ‘net worth’. A person’s net worth is the value of everything that they own (assets) after they have subtracted the value of anything they owe (liabilities). Show the learners a simple method of setting this out using two columns, one for the labels and the second one for the figures. After this, the learners progress to income and expenditure. All of the money that a person receives in a month is known as ‘income’. The money that is spent in the month is termed ‘expenditure’. Learners tackle Activity 2: ‘What is Wendy’s income and expenditure?’ and answer the set questions. Finally, the learners get to the concept of a budget. This is a statement of income and expenditure and it helps a person keep watch over his or her money so as not to overspend. Learners complete Activity 3 in pairs: ‘Create a budget layout for Wendy’ and then they create their own individual budgets. Comment on the different budget layouts that the pairs come up with. Worksheet link The instruction part of this lesson is the worksheet entitled ‘Savings, budgets, income and expenses’. Expanded activity Set the learners more questions to work on relating to the concepts in the worksheet. Informal Assessment Record each learner’s progress on your specified recording sheet. Assessment Criteria Did the learner become familiar with budget concepts by working out their net worth? Did the learner calculate income and expenditure and learn to tell the difference? Did the learner create a budget layout as well as a budget for themselves? Assessment rubric Rating code Description of competence 7 Outstanding achievement 6 Meritorious achievement 5 Substantial achievement 4 Adequate achievement 3 Moderate achievement 2 Elementary achievement 1 Not achieved