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10.2 Lesson 2: Budgeting for Rent and Food

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16 Nsɛmmisa
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Learning Objectives

Students will be able to:

  • Understand how consumers allocate their average annual budget across different spending categories

  • Prioritize multiple factors when deciding where to live

  • Identify ways to reduce expenses associated with renting

  • Explain how to save money when shopping at a grocery store

  • Compare the unit prices of grocery items before making a spending decision

  • Create a roommate agreement to share the costs associated with living together

National Standards for Personal Financial Education

 Spending

  • 1b: Develop a budget to allocate current income to necessary and desired spending, including estimates for both fixed and variable expenses

  • 2b: Describe a process for making an informed consumer decision

  • 4a: List different ways retailers advertise the prices of their products

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Learning Objectives

Students will be able to:

  • Understand how consumers allocate their average annual budget across different spending categories

  • Prioritize multiple factors when deciding where to live

  • Identify ways to reduce expenses associated with renting

  • Explain how to save money when shopping at a grocery store

  • Compare the unit prices of grocery items before making a spending decision

  • Create a roommate agreement to share the costs associated with living together

National Standards for Personal Financial Education

 Spending

  • 1b: Develop a budget to allocate current income to necessary and desired spending, including estimates for both fixed and variable expenses

  • 2b: Describe a process for making an informed consumer decision

  • 4a: List different ways retailers advertise the prices of their products

How much does the average consumer pay per month on various parts of their budget? Analyze this graph to find out! Then, answer the questions.

Look at the housing category:

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1a.

On average, how much does an American household spend on housing per year?

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1b.

How do you think this amount compares to what households spend on housing in your area?

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1c.

What variables might impact how much a person spends across these budget categories?

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1d.

How does your current spending across these categories compare to the data in the graph?

Whether you decide to rent or buy a home, where you live can have a huge impact on how much you spend on housing. There are many factors that go into making this decision beyond the cost.  Skim the article about the things you should consider before moving to a new place.  Then, answer the questions.

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2a.

The article lists 7 important factors that you should consider when deciding where to live. Rank each factor according to what is the most important to you. (Top is most important, bottom is least important)

  1. Crime

  2. Job Availability

  3. Commute

  4. Desirability and Happiness

  5. Quality and Availability of Healthcare

  6. Cost of Living

  7. Quality of Education

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Most young people will end up renting a place before buying a home. After you’ve decided where you want to live, there are ways to cut down on rental costs so that you can save money overall. Read through this article, starting from Selecting an Affordable Location and stop when you get to Which State Has the Most Affordable Rent? Then, answer the questions.

6 Easy Ways to Cut Rental Costs

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3a.

Ben works in a trendy downtown area of a major city. To save money, he is considering renting an apartment that would require him to have a total 2.5 hour commute each day. Do you think his decision is worth it? Explain.

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3b.

What is the importance of knowing what features and amenities you need and want in an apartment?

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3c.

As a first-time renter, Anna is eager to find an apartment. What is one piece of advice you’d give Anna before she signs her lease? Why?

As you saw in the first infographic, food is another area of your budget that you want to appropriately budget for. One of the best ways that you can save money and meet your food budget is to shop at the grocery store and prepare meals at home. However, even the grocery store has its budgeting challenges! Watch these videos and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.

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4a.

Which of the following statements about shopping for produce is TRUE?

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5.

One way to cut down on expenses associated with renting is to…

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6.

All of the following are ways you can save money at the grocery store EXCEPT…

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7.

Ben and Jose just graduated from high school and are entering the workforce. They want to share a 2 bedroom apartment and are at the very start of their apartment search. Which of the following steps should they take NEXT?

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2b.

Why did you put your highest ranked factor at the top of the list?

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4b.

What is a reasonable thing you can do to avoid buying items that catch your eye when going through the aisles?

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4c.

Why are items like candy, magazines, and gum placed strategically by the cash register?

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4d.

What are some tips you can use to avoid waste and overspending at the grocery store?