Budget Emergency: Adjusting Your Plan

Budget Emergency: Adjusting Your Plan

Grade 6-8 Personal Finance Smart Money Economy Workshop Learning to Handle Unexpected Expenses

Learning Objectives - I Can Statements

I can adjust my four-week Smart Money budget when unexpected expenses happen I can decide whether to use my emergency fund or make other changes I can recalculate my weekly balances to keep all bills paid I can explain my budget choices in writing

Success Criteria

Correctly calculate new weekly balances after unexpected expenses Use emergency fund appropriately or explain why not Keep essential bills (desk rent, utilities) paid Write clear 3-4 sentence justification for budget choices Record all transactions in ledger immediately

Opening Question: What Would You Do?

You have $50 in your Smart Money account Surprise! Your bike needs a $36 repair Your desk rent is due in 2 days ($15) What's your first move?

Budget Basics Review

Income: Money coming in (Smart Money jobs) Fixed Expenses: Must pay every time (desk rent, utilities) Variable Expenses: Can change (groceries, wants) Savings: Money set aside for goals Emergency Fund: Special savings for surprises

Sample Budget Before Emergency

Teacher Demonstration: Handling the Emergency

Watch as I show two different approaches Approach A: Use emergency fund first Approach B: Cut spending without using emergency fund Notice how I recalculate weekly balances

Key Strategy: Emergency Fund First

Emergency funds exist for exactly this purpose Use emergency fund BEFORE cutting essential needs Restore emergency fund gradually in remaining weeks Only reduce 'wants' if necessary to rebuild fund

Guided Practice: Partner Work

Work with your partner on the budget scenario Use your actual Smart Money balances Decide: emergency fund or spending cuts? Teacher will check your calculations

Scaffolding Questions

Easy: How much is in your emergency fund right now? Medium: If you use $X from emergency fund, how much must you add back each week? Hard: If your job hours drop by one week, how does that change your plan?

Independent Practice: Your Emergency Scenario

Receive your individual scenario card Update your 4-week budget with new calculations Write 3-4 sentences explaining your choices Show your work clearly for teacher review

Closing: What We Learned

Emergency funds protect our financial plans Recalculate weekly balances after any changes Keep essential bills paid first Record every transaction immediately Explaining our choices helps others learn