Grade 7 Term 2 Economic and Management Sciences

Lesson Plan

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