What are my spending habits?
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Introduction
Students learn to use spending diaries to work out how they spend their money and whether their spending habits are regular payments, needs or wants. This provides a solid foundation for them to establish good habits for money management.
From a superannuation perspective, this activity provides a foundation for understanding the role of saving to achieve long-term goals.
Achievement standard
By the end of Year 7, students describe the interdependence of consumers and producers in the market. They explain the importance of short- and long-term planning to individual and business success and identify different strategies that may be used. They describe the characteristics of successful businesses and explain how entrepreneurial capabilities contribute to this success. Students identify the reasons individuals choose to work and describe the various sources of income that exist.
When researching, students develop questions and gather data and information from different sources to investigate an economic or business issue. They interpret data to identify trends. They propose alternative responses to an issue and assess the costs and benefits of each alternative. They apply economics and business knowledge, skills and concepts to familiar problems. Students develop and present conclusions using appropriate texts, terms and concepts. They identify the effects of their decisions and the possible effects of alternative actions.
Content descriptions
Economics and Business Knowledge and Understanding
Why and how individuals and businesses plan to achieve short-term and long-term personal, organisational and financial objectives (ACHEK018).
Economics and Business Skills
Apply economics and business knowledge, skills and concepts in familiar and new situations (ACHES025).
Teacher resources
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Categorising expenses
Student learning resources
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Spending diary
Where did that fifty dollars go?
Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group.
Note: this activity can be introduced in the first lesson, but the majority of the lesson will take place one week later as students are required to keep a spending diary in this time period.
Part A: Spending diary
- Explain to students that one of the tools they can use to manage their money is by keeping a spending diary. A diary enables them to see what they spend their money on.
- Set students the spending diary challenge.
Over the next week, you will keep a spending diary. Use the diary to record everything you spent money on – include everything such as mobile phone costs or top-ups, bus fees and snacks.
Part B: Using the spending diary to work out spending habits
At the end of the week, students use their completed spending diaries to complete the worksheet.
- Ask students to complete step 1 and step 2 of the worksheet.
- Use the visualiser to explain the difference between regular expenses, needs and wants.
- Students complete the remaining questions on the worksheet.
- Use a reflection strategy for students to record what they have learned about their own spending habits.
- Students write a statement explaining to someone their age why understanding their spending habits is an important financial management tool.