Managing your spending
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Introduction
Students learn the steps they can take to manage their spending and track their spending using a diary. They learn that having a spending plan can support them to live within their means or even save.
From a superannuation perspective, this activity provides a foundation for understanding that a spending plan can affect their long-term financial position.
Achievement standard
By the end of Year 8, students explain how markets influence the allocation of resources to the production of goods and services. They explain ways that businesses adapt to opportunities in markets and respond to the work environment. They describe the importance of Australia’s taxation system and its effect on decision-making by individuals and businesses. Students explain why individuals and/or businesses budget and plan.
Students develop a range of questions to investigate an economic and business issue. They locate, select and organise relevant information and data. They interpret information and data to identify economic and business issues and trends, and describe economic cause-and-effect relationships. They develop a response to an economic and business issue. They identify and evaluate potential costs and benefits. Students use economic and business knowledge, concepts, terms and research findings to create descriptions and explanations.
Content descriptions
Economics and Business Knowledge and Understanding
Processes that individuals and/or businesses use to plan and budget to achieve short-term and long-term financial objectives. (AC9HE8K05)
Economics and Business Skills
Interpret information and data to identify economic and business issues, trends and economic cause-and-effect relationships. (AC9HE8S03)
Develop a response to an economic and business issue, identifying potential costs and benefits. (AC9HE8S04)
Create descriptions and explanations, using economic and business knowledge, concepts and terms, and referencing information and data from sources. (AC9HE8S05)
Teacher resources
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Steps to manage your spending
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.