F1.3 Create, track, and adjust sample budgets designed to meet longer-term financial goals for various scenarios.
Skill: Creating, Tracking and Adjusting Sample Budgets
Beginning in Grade 7, students explore the creation of a budget for a major expense. This expense does not have to be a physical object, nor does it have to be an individual purchase – we don't want to promote consumerism. The expense could be, for example, a ticket to a concert, a donation to a charity, a first payment for post-secondary education, equipment for a job, an apprenticeship, or hobby. Creating a long-term budget requires more inputs and outputs than a basic budget because contingencies are more likely to occur over a longer period of time.
Below is an example of a family budget. However, it is ideal to bring out the elements of the budget in a conversation so that students can take ownership of the content and share their perspectives and knowledge. The richness of the conversation lies in the variety of perspectives in the class group.
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Income |
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Fixed Monthly Income |
$3000 |
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Variable Monthly Income (tips, gifts, other sources of income) |
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Total revenue |
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Fixed Monthly Expenses |
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Housing |
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Internet and cell phone |
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Electricity, water, heating |
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Transportation |
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Food |
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Savings* |
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Variable Monthly Expenses |
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Hobbies and leisure |
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Social activities |
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Other expenses |
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Total expenses |
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The student can search the Internet to find approximate amounts for each box in the budget. Educators should not over-set budgets, as students may have different priorities; for example, a student who values a variety of family activities will allocate more money to hobbies and recreation. Again, there is no one way to create a long-term budget.
In addition to monthly expenses, the budget could also include a monthly amount to be saved (shown by an asterisk in the example). Students can use this amount to set aside funds each month for the family to make a major purchase.
Extensions: The family budget is only one type of budget that the student can explore. Other types of budgets will have different elements to consider. For example, the student might:
- Establish a personal budget in which a fixed amount per month is saved for the purchase of a vehicle. The expenses and savings in the budget cannot, however, exceed the income.
- Create a budget for a community non-profit organization, club, committee or sports team. Budgets for such organizations are even more complex than the family budget. For example, there may be donations or grants in the revenue column and salaries to pay in the expense column.
Knowledge: Budget
A budget is an estimate or plan to manage income and expenses over a set period; for example, many people have a weekly or monthly budget.
Source: The Ontario Curriculum. Mathematics, Grades 1-8 Ontario Ministry of Education, 2020.