Money Management Unit for 5 point classes High School

Unit on Money Management:

One of the subjects that teens need to learn is money management.  The banks all fall over themselves to offer bank accounts to college students.  They offer credit cards and free mp3’s to teens who open up a bank account.  But do they also offer instruction about sound financial money management?   
This unit will explore how to manage your money, a skill that you will need throughout your life.

Lesson 1

Vocabulary terms:

Goals   Savings Income Expense

Liability Salary Asset Cash Flow

Investing money financial goals down payment earn

Expenditure unplanned expenditures

Money Management  

Your money goals.

In order to learn how to manage your money, you need to have goals.  Write down what your financial goals are.

Weekly  _____________________________

Monthly  ____________________________

Yearly  _____________________________

If you want to save up for a certain financial goal, first find out what the cost is and divide by 12.  Say I want to buy a car.  The down payment for the car is 6,000 NIS.  I divide this by 12 months, and then I will find out how much I need to save per month to be able to afford the down payment.  In this case I need to save 500NIS a month, and after a year I will have saved 6000NIS.  

Expenses

Expenses are items that we buy. This can be food, gas for the car, household expenses such as electricity, your rent, and entertainment.

Write down what your monthly expenses are:  

Food ________________________

Clothing ________________________

Entertainment ________________________

Rent: ________________________

Telephone ________________________

Mobile phone ________________________

Educational ________________________

Electricity ________________________

Gas for Car ________________________

Cooking Gas ________________________

Water bill ________________________

Add up the expenses:   ___________________________

Medical expenses   _________________________

Charity/Tzdaka _________________________

unplanned expenditures  _______________________

This is sum total are your monthly expenses.  

Were the unplanned expenditures a good decision or a bad decision?

Income;  Income is the amount of money you earn from salary and investments, and other sources such as Bituach Leumi

Salary _________________________

Investments _________________________

Other _________________________

Add this up for

Total Income __________________________

Now find out if you manage your money effectively:

Total income   ___________________________

Total expenses ___________________________

Amount  left over

(or minus) ___________________________

Did the unplanned expenditure put you in the Red? Was there a way to prevent it?

________________________________________________________________________

If your income is greater than your expenses, then you have extra money at the end of each month that you can save or not.  

If your expenses are greater than your income that means that you are “In the Red.”  This means that you spend more money than you make.  Examine you expenses, are you spending too much money each month on something?  If your water bill is suddenly too high, maybe you have a water leak somewhere.  Get it fixed.  Spend less money on clothing and entertainment.  Talk less on the phone.  

Write down your actual expenses for each month for a few months and see if you can learn to live within your income.

Find another source of income.(legally!)  Get a part time job, do something to add to your income.

Now that you know what your monthly financial situation is, you can plan for the future.

Make goals for each expense, making sure that the amounts are reasonable, and that you can live within your means.  After a few months, go over your goals once again, making adjustments as necessary.  

Lesson 2

Vocabulary:

Risk medical insurance homeowner insurance Mandatory

Insurance car insurance fire insurance

Cover expenses

Insurance.  Insurance is a way of covering yourself from unplanned risk.  In the United States where there is no nation-wide medical plans, people buy medical insurance to cover medical expenses.  Here in Israel, where the Kupot Cholim covers basic medical costs, you can still buy extra insurance.  This reduces the risk when you get sick and need a medical procedure.  

What are some types of low risk activities?  

Buying a pizza,

CD player  

Name three more: ________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Insurance:

Car insurance:

There are two types of car insurance in Israel   “Chova” which is  Mandatory and 3rd Side.  

Compare with the help of the Internet the costs of these two types of insurance:

Company 1

Company 2

Company 3

Unit 3 Food expenses 

How much do you pay for food each month? 

For one month, save your receipts;

Add them up here: ______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

Now look at what you bought for the past month. Are there foods that you bought too much of and had to throw away?

List them here: 

______________________________ ______________________________  

______________________________ ______________________________

Do you go out to restaurants often? 

List your restaurant expenses 

______________________________ ______________________________  

______________________________ ______________________________

Look at all your food expenses and list what is possible to buy less of, or not at all

______________________________ ______________________________  

______________________________ ______________________________

How much money can you save?

_____________________________________

Lesson 4

Clothing

For many teens clothes and shoes are a fashion statement. They buy new clothes to keep up with the fashion. But do you really need to?

For one month, keep track of your clothing expenses. Include all clothing and shoes.

______________________________ ______________________________  

______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

______________________________ ______________________________  

______________________________ ______________________________

Now look at all your receipts and what you bought. Did you plan your shopping according to your needs, or did you buy some clothes on impulse?

Which clothes did you have "buyer's remorse?

______________________________ ______________________________  

______________________________ ______________________________

Which items did you wear? Which items stayed in the closet?

Changing seasons. Do you store your clothes from season to season, or do you buy new clothes every year?

List which clothes that you would put away.

______________________________ ______________________________  

______________________________ ______________________________

Which clothes are appropriate to buy new each year?

______________________________ ______________________________  

______________________________ ______________________________

How much money can you save if you decide not to buy new year year? Where are you going to store them?

Lesson 5

Money management reflection:

What did you learn during this Unit?

______________________________ ______________________________  

______________________________ ______________________________

Which money management techniques were new to you?

______________________________ ______________________________  

______________________________ ______________________________

Which ones will you start to do that you didn't do before?

______________________________ ______________________________  

______________________________ ______________________________

How did your relationship with money change as a result of learning these techniques?

______________________________ ______________________________  

______________________________ ______________________________

Good luck with managing your money in the future!

Money Money Management Lesson Plan by Rachael Alice Orbach - Professional English teacher

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