NAP Mate is a registered trademark of Mighty Minds Educational Systems Pty Ltd. Cairns State High School

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1 NAP Mate is a registered trademark of Mighty Minds Educational Systems Pty Ltd. Cairns State High School

2 Applying a progression of steps to achieve the required answer (ϕ37) CCE Lesson Phi 37 Resource code:

5 Following a budget is like having a safety harness; as long as you stick to it, you re not going to face a disaster. That is, considering you have planned your budget meticulously and accurately, you won t run out of money. Imagine it, you re almost done with school! You are even thinking about leaving home soon after graduation. You ve got yourself a job set up for when you finish school and it pays fairly well; $19/hour in fact. You re going to work 22 hours a week. Rent s not so bad right? And living off two-minute noodles? Well that s just a rite of passage. You re going to party like there s no tomorrow, and never clean up your room. Plus, you ll probably have a roommate who will be so much more chilled than your parents. Life will be grand! Q1 Your parents have suggested you work out a budget for yourself. To do this, you must first establish how much your weekly earnings will be after tax. Use the information provided below to calculate your weekly income after tax. Assume you work 22 hours per week, 52 weeks of the year. Annual Income Amount Taxed 0 - $18,200 0 $18,201 $37,000 Percentage Taxed (per dollar earned) 0% 19c of every $1 earned over $18, % 100 Source: Tax Rates : Australian Taxation Office

6 Q2 Fill out the basic Income and Fixed Expenses budget using the information below. Then, answer the questions provided. Income Income Weekly wage (after tax) Type Frequency Amount Fixed Expenses Rent: $175/week Mobile phone plan: $50/month Car insurance: $600/year Health insurance: $100/month Petrol: $60/fortnight! Fixed Expenses Type Frequency TIP Round all figures to two decimal places a) Convert all expenses to a weekly figure. Assume there are four weeks in every month. Amount

7 b) What is the total of your fixed expenses per week? c) How much money will you have left over after paying your fixed expenses every week? d) Suppose you d like to put away 30% of your left-over money each week into a savings account. How much would you be putting away each week? e) How much money is left over after your weekly fixed expenses and savings? f) What do you think you might spend this left-over money on? g) Imagine you want to buy a ticket to your favourite band s concert. The performance is in 7 weeks and you can buy tickets at the door. Tickets are $231 each. You plan to put away extra money every week to pay for your ticket. How much extra money do you need to put away every week to save up the money? You cannot take any money from your existing savings account. i) What percentage of your left-over money (after weekly fixed expenses and savings) are you saving for a ticket to the concert?

8 Applying a progression of steps to achieve the required answer (ϕ37) CCE Lesson Phi 37 Resource code:

9 Item Description Please note: any activity that is not completed during class time may be set for homework or undertaken at a later date. Activity Description: This activity has been designed to enhance students ability to use initiative and problem solving skills in order to complete basic mathematical processes. Students are asked to calculate weekly earnings after tax, before using that number as a platform for further calculations. They are also given a budget that they are asked to complete. Purpose of Lesson: KLAs: This lesson is designed to take approximately 40 minutes to complete. Teaching Notes: Applying a progression of steps to achieve the required answer (ϕ37) Suggested Time Allocation: Mathematics A CCEs: To enhance students ability to use initiative and their existing knowledge to apply a progression of steps, and in turn, achieve the required answer. This activity allows students to apply basic mathematical concepts to everyday situations. A pen/pencil is required, as well as a calculator. Teachers should go through the answers to Question One prior to students moving on to Question Two. This will ensure that students carry through the correct figure. If struggling, students should be encouraged to work in pairs to consolidate their learning. As an extension, students should create their own budget, based on their current earnings and expenses (if any). Follow Up/Class Discussion Questions: Why do you think budgeting is so important? Do you think that moving out of home and becoming independent is as easy as it sounds? What other expenses might you face moving out of home?

10 Following a budget is like having a safety harness; as long as you stick to it, you re not going to face a disaster. That is, considering you have planned your budget meticulously and accurately, you won t run out of money. Imagine it, you re almost done with school! You are even thinking about leaving home soon after graduation. You ve got yourself a job set up for when you finish school and it pays fairly well; $19/hour in fact. You re going to work 22 hours a week. Rent s not so bad right? And living off two-minute noodles? Well that s just a rite of passage. You re going to party like there s no tomorrow, and never clean up your room. Plus, you ll probably have a roommate who will be so much more chilled than your parents. Life will be grand! Q1 Your parents have suggested you work out a budget for yourself. To do this, you must first establish how much your weekly earnings will be after tax. Use the information provided below to calculate your weekly income after tax. Assume you work 22 hours per week, 52 weeks of the year. Annual Income Amount Taxed 0 - $18,200 0 $18,201 $37,000 Percentage Taxed (per dollar earned) 0% 19c of every $1 earned over $18, % 100 Source: Tax Rates : Australian Taxation Office Annual Income (before tax) = ($19 22) 52 = $ = $21,736 Annual Taxable Income = $21,736 - $18,200 = $3,536 Weekly Taxable Income = $3, = $68 Weekly Tax = 0.19 $68 = $12.92 Weekly Income (After Tax) = (19 22) $12.92 = $418 $12.92 = $405.08

11 Q2 Fill out the basic Income and Fixed Expenses budget using the information below. Then, answer the questions provided. Income Income Weekly wage (after tax) Fixed Expenses Rent: $175/week Mobile phone plan: $50/month Car insurance: $600/year Health insurance: $100/month Petrol: $60/fortnight! TIP Round all figures to two decimal places Type Frequency Amount Earnings (after tax) Weekly $ Fixed Expenses Type Frequency Amount Rent Weekly $175 Mobile phone plan Monthly $50 Car insurance Annually $600 Health insurance Monthly $100 Petrol Fortnightly $60 a) Convert all expenses to a weekly figure. Assume there are four weeks in every month. Mobile phone plan Car insurance = $50/month Petrol = $60/fornight = $50 4 = $60 2 = $12.50/week = $30/week = $600/year = $ = $11.54/week Health insurance = $100/month = $100 4 = $25/week

12 b) What is the total of your fixed expenses per week? Weekly fixed expenses = $175 + $ $ $25 + $30 = $ c) How much money will you have left over after paying your fixed expenses every week? Money left over = $ $ = $ d) Suppose you d like to put away 30% of your left-over money each week into a savings account. How much would you be putting away each week? Weekly savings = 30% $ = 0.3 $ = $45.31 e) How much money is left over after your weekly fixed expenses and savings? Money left over = $ $ $45.31 = $ f) What do you think you might spend this left-over money on? I think the money left over would be spent on day-to-day expenses such as groceries, leisure activities, coffee, health and fitness, one-off costs, etc. g) Imagine you want to buy a ticket to your favourite band s concert. The performance is in 7 weeks and you can buy tickets at the door. Tickets are $231 each. You plan to put away extra money every week to pay for your ticket. How much extra money do you need to put away every week to save up the money? You cannot take any money from your existing savings account. Extra weekly savings = $231 7 = $33 i) What percentage of your left-over money (after weekly fixed expenses and savings) are you saving for a ticket to the concert? Percentage of left-over money = ($33 $105.73) 100 = 31.21%

13 Question One: Students were required to calculate weekly earnings after tax. They were given the tax rates and the base earning figures. In order to calculate the correct answer, students needed to find the amount earned that was above the tax-free threshold ($18,200).The correct response is provided below. Correct Response: Annual Income (before tax) = ($19 22) 52 = $ = $21,736 Annual Taxable Income = $21,736 $18,200 = $3,536 Weekly Taxable Income = $3, = $68 Weekly Tax = 0.19 $68 = $12.92 Weekly Income (After Tax)= (19 22) - $12.92 = $418 $12.92 = $ Question Two: Students were required to use the given information, and their answer to Question One, to complete the given table (budget). They were then given a series of questions that built upon the budgeted numbers. All answers should have been rounded to two decimal points (where necessary). The correct responses are provided on the following page. This teacher s answer guide is continued on the next page...

14 ...This teacher s answer guide is continued from the previous page. Question Two (cont d): Correct Response: Income Type Frequency Amount Earnings (after tax) Weekly $ Fixed Expenses Type Frequency Amount Rent Weekly $175 Mobile phone plan Monthly $50 Car insurance Annually $600 Health insurance Monthly $100 Petrol Fortnightly $60 a) Convert all expenses to a weekly figure. Assume there are four weeks in every month. Mobile phone plan = $50/month = $50 4 = $60 2 = $12.50/week Car insurance Petrol = $60/fornight = $30/week = $600/year = $ = $11.54/week Health insurance = $100/month = $100 4 = $25/week This teacher s answer guide is continued on the next page...

15 ...This teacher s answer guide is continued from the previous page. Question Two (cont d): Correct Response (cont d): b) What is the total of your fixed expenses per week? Weekly fixed expenses = $175 + $ $ $25 + $30 = $ c) How much money will you have left over after paying your fixed expenses every week? Money left over = $ $ = $ d) Suppose you d like to put away 30% of your left over money each week into a savings account. How much would you putting away each week? Weekly savings = 30% $ = 0.3 $ = $45.31 e) How much money is left over after your weekly fixed expenses and savings? Money left over = $ $ $45.31 = $ f) What do you think you might spend this left-over money on? I think the money left over would be spent on day-to-day expenses such as groceries, leisure activities, coffee, health and fitness, one-off costs, etc. g) Imagine you want to buy a ticket to your favourite band s concert. The performance is in 7 weeks and you can buy tickets at the door. Tickets are $231 each. You plan to put away extra money every week to pay for your ticket. How much extra money do you need to put away every week to save up the money? You cannot take any money from your existing savings account. Extra weekly savings = $231 7 = $33 i) What percentage of your left-over money (after weekly fixed expenses and savings) are you saving for a ticket to the concert? Percentage of left-over money = ($33 $105.73) 100 = 31.21% Powered by TCPDF (

Budgeting Your Way to a Better Tomorrow

Budgeting Your Way to a Better Tomorrow Money makes the world go round, and budgeting can get you further around that world. To be a successful money manager you must know how to budget. Here at Texas