Math Blog
The part of math we often forget about in middle school is the real life application. This next activity helps you gain perspective of "why do I need to learn this"!
Finance
Activity #1 Name_______________
Terms:
· Budget
· Responsible Financial Decision Making
· Financial Goals
· Interest
· Credit
· Debt
· Expenses
· Gross Pay
· Take-home Pay
Review the
following case study with your team. You may want to do some calculations
before you decide what Sharonda’s BEST
options (solutions) are.
Sharonda is
a member of the dance team at Sherwood High School. She is responsible for
purchasing her dance outfits as the school does not provide them. The outfit
costs $57. Sharonda has a part-time job at the local grocery store working 20
hours a week for %5.15 an hour. Her gross monthly income is $412 and her
take-home pay is $329.60 a month. In her spare time, Sharonda babysits for her
neighbor, earning $60 per month.
· Sharonda’s parents gave her a used
compact car and Sharonda pays her own insurance, which is $100 per month. Her
gas and repairs usually run $60 per month.
· In three weeks, Sharonda will be giving
a surprise birthday party for her best friend Sara. This party will cost
Sharonda $50, but she also wants to buy new clothes for the party which will
cost her and additional $50. Her gift for Sara costs $35.
· Sharonda has to repair her broken MP3
player which will cost $79. She also needs to start saving for holiday gifts,
which is in four months, and she usually spends about $150 on gifts for her
family and friends.
· Even though Sharonda’s parents are
paying for her college tuition, she will have to pay for her room and board and
books. Room and board runs $650 per semester (2) and books will run $300 per
semester (2).
With your
team, play with the numbers that are confronting Sharonda and then use that
information to answer the following questions:
1.) Why would a person need a budget?
2.) How does saving help people reach
their goals?
3.) What is an example of responsible
financial decision making?
4.) What could Sharonda do to be able to
pay for all of her “wants”? Can she pay for all of her “wants”?
