ECONOMIC AND MANAGEMENT SCIENCES

CONTENT UNPACKING FOR LESSON PREPARATION / PLANNING

TERM 2
GRADE 7 SUBJECT EMSDURATION: WEEK 6
TOPIC: FINANCIAL LITERACY
BUDGETS
CONTENT: KEY TERMS (VOCABULARY):

 Drawing a personal budget Personal budget, Income, expenditure

MAIN POINTS OF THE LESSON
[USE A VARIETY OF TEXTBOOKS FOR MORE RELEVANT INFORMATION]
LEARNERS SHOULD BE GIVEN HOMEWORK TO ANSWER THE FOLLOWING MARKING OF THE HOMEWORK
QUESTIONS IN THEIR WORKBOOKS.
 ASK LEARNERS TO EXCHANGE THEIR
1. WHAT IS INCOME? WORKBOOKS.

2. WHAT IS AN EXPENSE?  LET THEM GIVE YOU THEIR ANSWERS AND WRITE
EACH ANSWER ON THE BOARD AS THEY MARK
3. WHAT IS A BUDGET?
 IF THEY GIVE A WRONG ANSWER, EXPLAIN WHY IT
4. WHAT IS A SURPLUS? IS WRONG.

5. WHAT IS A DEFICIT?

6. MAKE A LIST OF PERSONAL EXPENSES [5 OR MORE EXPENSES]

7. MAKE A LIST OF AT LEAST 5 WAYS IN WHICH PEOPLE CAN GET

PERSONAL INCOME.

8. WHY SHOULD PEOPLE DRAW A BUDGET BEFORE THEY SPEND

THEIR INCOME. GIVE 5 REASONS.

ASK LEARNERS IF THEY ALSO MAKE A BUDGET BEFORE SPENDING THEIR MONEY.
EXPLAIN THE FOLLOWING STEPS OF DRAWING A BUDGET TO LEARNERS

Steps to draw up a budget:

Step 1: Make a list of all the income you receive.
Step 2: Add it up to get the total income.
Step 3: Make a list of all the possible expenditure you may have in the month.
Step 4: Add up these amounts to get the total expenditure.
Step 5: Subtract the expenditure from the income.
Step 6: Look at your budget very carefully to see if you can reduce your expenditure so that you can save some money.
Step 7: Rewrite your adjusted budget and keep it in a place where you can constantly refer to it.

 EXPLAIN TO LEARNERS THAT THERE IS A FORMAT OR TABLE THAT IS USED TO DRAW A BUDGET.
 GIVE EACH LEARNER A COPY OF THIS TABLE

INCOME R

Total income
Minus Expenses

Total expenditure
Surplus or Deficit

ASK THEM TO DARW A BUDGET FOR STEPHEN WITH THE INFORMATION HERE-BELOW:
EACH LEARNER MUST BE GIVEN THIS TABLE TO DO THE BUDGET BUT ALLOW THEM TO HELP EACH OTHER.

Stephen receives R200 pocket money each month. He also washes cars and receives R30 for each car he washes.
He washed 10 cars in the past month. He has the following expenses each month:
 Mobile phone airtime, R100
 Clothes, R150
 Movies and entertainment, R120
 Bus ticket, R50

 MARK THE ACTIVITY WITH LEARNERS.

 LET THEM EXCHANGE THEIR SCRIPTS TO MARK EACH OTHER.
 ASK THEM TO GIVE YOU THE ANSWERS AS YOU COMPLETE THE BUDGET TABLE ON THE BOARD.
 ADDRESS ANY CHALLENGES THEY MIGHT STILL HAVE.
CLASS ACTIVITY TO DO WITH LEARNERS ON THE CHALK / WHITE BOARD

Draw up a personal budget for Simon.

Review Simon’s personal budget for April 2015 and answer the questions that follow.

Draw this table of Income and expenses on the board and ask questions below.

Income: Expenses:
Pocket money R400 Toiletries R100
Washing cars over the weekend R200 Transport ticket R150
Airtime R100
Tuck shop R200

Ask learners the following questions:

1. How much is Simon’s income for the month?

2. How much is Simon’s expenses for the month?
3. Does Simon have any money left for the month? If so, how much?
4. If his income remains the same every month. How long will it take him to buy a pair of jeans what
costs R300?
5. If he wants to buy his pair of jeans earlier, suggest ways that he can use to decrease his expenses.

POSSIBLE ANSWERS
1. R400 + R200 = R600
2. R100 + R150 + R100 + R200 = R550
3. R600 – R550 = R50
4. R300/R50 = 6 months (Even less if he cuts on his expenses)
5. Answers will differ but make sure learners adjust expenses realistically. Transport ticket cannot be
an answer.
- To use less toiletries – boys only need a bar of soap, toothpaste and one bottle of under arm
deodorant.
- To cut down on airtime – spend less time on cell phone and study.
- Make lunch at home to cut down on tuck shop money used.