Budgeting & Profit

Year 6 Mathematics – Budgeting & Financial Planning

Australian Curriculum Links

Content Descriptor:

• ACMNA132: Investigate and calculate percentage discounts of 10%, 25% and 50% on sale items, with and without digital technologies.
• ACMNA131: Explore the use of financial planning, including cost management, comparing prices, and calculating profit and loss.

Learning Objective:
By the end of this lesson, students will:
✔ Understand the fundamental concepts of budgeting, including costs, revenue, and profit.
✔ Accurately use a spreadsheet to track financial information.
✔ Develop an appreciation for financial literacy and real-world applications.

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Lesson Structure (30 Minutes)

1. Introduction (5 Minutes) – The Budgeting Challenge!

• Introduce the lesson with a scenario:
  "Imagine you are starting a small business selling handmade bracelets. You need to plan your budget carefully to make a profit. How will you manage your costs to ensure you earn money?"
• Discuss key terms:
  • Material Cost: How much you spend on items (e.g., beads, elastic).
  • Labour Cost: The time taken to make the product, with an assigned wage per hour.
  • Selling Price: The price at which the item is sold.
  • Profit: Selling price - (Material costs + Labour costs).

2. Activity (20 Minutes) – Budget Planning with Spreadsheets

Task:

• The student will create a simple profit and loss spreadsheet using the table below to calculate their business’s revenue.
• They will be given set labour and material costs but can choose their selling price.
• The teacher will role-play as a "customer" and negotiate prices to show real-world scenarios.

Item	Cost per Unit	Quantity	Total Cost
Beads	$0.10	___	___
Elastic	$1.50	___	___
Labour Cost (Per Bracelet)	$2.00	___	___
Total Cost of Production			___
Selling Price Per Bracelet	$___	___	$___
Profit (Selling Price - Total Cost)			$___

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3. Reflection & Discussion (5 Minutes) – Real-World Learning

• Discuss the impact of increasing or decreasing prices.
• Ask reflective questions:
  • "What challenges did you face in deciding your prices?"
  • "If you were to start a real business, what other costs might you consider?"
• Emphasise the importance of financial literacy in everyday life.

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Materials Required:

✔ Spreadsheet software (Google Sheets/Microsoft Excel or printed worksheet)
✔ Calculator

Assessment & Differentiation

• For faster learners: Introduce bulk discounts (e.g., "What if you bought beads in packs of 100 at a discounted rate?").
• For extra support: Provide a pre-filled spreadsheet with automatic formulas to guide their budgeting.
• Formative assessment: Observe engagement and understanding through class discussion.

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WOW Factor – Why This Lesson Stands Out 🍀

🔹 Real-World Relevance – Students engage in a practical, hands-on financial planning task.
🔹 Negotiation Practice – Enhances decision-making and problem-solving skills.
🔹 Cross-Curricular Learning – Integrates maths with business studies and ICT skills.

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Conclusion:
This lesson not only helps students understand budgeting and profit calculations but also builds essential life skills, encouraging them to think like future entrepreneurs. By engaging in real-world scenarios, they are better equipped to navigate personal and business finances in the future! 🚀