1. Module 5: Managing
your money – budgeting

2. Module objectives
Provide an opportunity to look at the learner outcomes in the ‘Manage money’ element of the numeracy component of the National Literacy and Numeracy Framework (LNF), to identify where budgeting exists in the curriculum in Wales.
Highlight resources and activities that can be used in Key Stages 2, 3 and 4 to develop learners’ numeracy skills in the context of managing their money by budgeting.

3. Learner aims
This module introduces the process of budgeting. It works across key stages and some learners will:
appreciate the decisions that need to be made relating to ‘essential and non-essential purchases’
identify the differences between a need (something you cannot live without) and a want (something you can live without)
identify how money enters and leaves their lives
understand the differences between income and expenditure
be able to explain why a budget needs to balance.
Ideas:
Find out about learners’ knowledge relating to budgeting, needs and wants, income and expenses.

4. The National Literacy and Numeracy Framework (LNF)
The National Literacy and Numeracy Framework (LNF) focuses on four strands of numeracy:
Strand 1: Developing numerical reasoning
Strand 2: Using number skills
Strand 3: Using measuring skills
Strand 4: Using data skills.
A look at where ‘Manage money’ exists in the LNF. 4

5. Numeracy component of the LNF
Strand: Using number skills
Elements:
Use number facts and relationships
Fractions, decimals, percentages and ratio
Calculate using mental and written methods
Estimate and check
Manage money 5

6. LNF learner outcomes
The following tables show the learner outcomes as specified in the numeracy component of the LNF.
The focus in this module is the topic of budgeting which is highlighted in bold in the tables.

7. realise that budgeting is important.
Manage money
Learners are able to:
Year 3
use different combinations of money to pay for items up to £2 and calculate the change
order and compare items up to £10
record money spent and saved.
Year 4
use money to pay for items up to £10 and calculate the change
order and compare items up to £100
add and subtract totals less than £10 using correct notation, e.g. £6.85 – £2.76
manage money, compare costs from different retailers and determine what can be bought within a given budget.
Year 5
order and compare the cost of items up to £1 000
add and subtract totals less than £100 using correct notation, e.g. £ £33.45
plan and track money and savings by keeping accurate records
realise that budgeting is important.
Year 6
use the terms profit and loss in buying and selling activities and make calculations for this
understand the advantages and disadvantages of using bank accounts
make comparisons between prices and understand which is best value for money. 7

8. Manage money
Learners are able to:
Year 7
use profit and loss in buying and selling calculations
understand the advantages and disadvantages of using bank accounts, including bank cards
make informed decisions relating to discounts and special offers.
Year 8
carry out calculations relating to VAT, saving and borrowing
appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.
Year 9
calculate using foreign money and exchange rates
understand the risks involved in different ways of saving and investing
describe why insurance is important and understand the impact of not being insured.
Extension
use and understand efficient methods of calculating compound interest
understand and demonstrate the real-life process of foreign exchange
understand and calculate income tax.

9. The Personal and social education framework for 7 to 19-year-olds in Wales also highlights opportunities for learners to develop their budgeting knowledge. These are highlighted in bold on the next slide.
Resource: LNF. 9

10. Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 2 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 that money is earned through work and can buy goods and services
 the importance of looking after their money and the benefits of regular saving.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 3 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 the economic and ethical consequences of personal financial decision-making as a consumer, e.g. Fairtrade
 how to become competent at managing personal finances and recognise that saving provides financial independence.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 4 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 their rights as consumers and their responsibilities in terms of managing a budget
 the importance of planning for their financial futures and how to access financial advice.

11. How do we know if we can afford something?
Can we afford it?
Starter activity:
How do we know if we can afford something?
Ideas:
Find out about learners’ knowledge relating to budgeting, needs and wants, income and expenses.

12. What do these terms mean?
needs
wants
See Manage money activity sheet: Needs and wants (Key Stage 2/3 activity).
Using images and words, learners can decide which items they cannot live without (need) and those items that they simply want to have.
Discussion ideas:
Find out about learners’ knowledge relating to needs and wants.

13. Need versus want
Ideas:
Find out about learners’ knowledge relating to budgeting, needs and wants, income and expenses.
Carry out the activity online by visiting 13

14. Essential and non-essential items
Scenario:
You have started working, have your own flat and recently had a loan to purchase a new car.
Differentiation:
The activity can be limited to fewer cards. The scenario can be presented to younger learners by asking them to think about what type of bills their parents/carers may have to pay.
Print off Resource 1: Essential and non-essential items, which is a Key Stage 3/4 activity. This activity asks learners to sort the cards into two groups – ‘essential’ and ‘non-essential’ monthly payments/purchases. Examples are shown on the next slide.

15. Essential and non-essential items
Music downloads
Bus fares
Car loan repayment
Food/
toiletries
Meal out with friends
TV licence
Electricity
Concert ticket
Work clothes
Mobile phone bill
Takeaway pizza
Petrol
House insurance
New trainers
Car insurance
Water
Mortgage/
rent
Gas
Council tax
£10 savings
Print off Resource 1 which has these examples in Word format. Learners sort the cards into essential and non-essential items. Encourage learners to justify their responses.

16. Discussion activity:
How does money come in and out of your life on a daily, weekly or monthly basis?
This is a question for upper Key Stage 2 to Key Stage 4 learners. Present learners with the question. They can write ideas on sticky notes and share with each other and the group. Differentiation will occur naturally in the responses they give.

17. Education Maintenance Allowance (EMA)
Snacks
Payment for chores
Gifts
Mobile phone
Toiletries
Pocket money
Cinema/
concerts
Part-time work
Here are some responses that learners may give on how money enters and leaves their lives on a daily, weekly, monthly basis.
This exercise can be used for learners to identify which items are income and which are expenditure (colour coded), or to discuss how the items are linked. Learners can then determine that money comes into their lives (and can give it the label ‘income’) and that money goes out (and be introduced to the term ‘expenses’ or ‘expenditure’).
Buying music
Buying clothes
Bus fares

18. Income and expenditure
Key Stage 2 activities:
Activity 1: Can we afford it? (see Manage money activity sheet: Can we afford it?)
Activity 2: Money wise: a monthly budgeting card game (see Manage money activity sheet: Money wise monthly budgeting card game)
Activity 3: Budgeting how much electricity to use – ‘Let’s cut back’. Visit the activity online at
Activities have been differentiated into key stages based on context. The key stages are for guidance only and teachers should select activities to match the ability of learners. Links/explanations for activities on the following slides.

19. Income and expenditure
Activity 1: Can we afford it?
See Manage money activity sheet: Can we afford it?
Learners are given a storyboard to complete. The storyboard charts a family’s decision about whether they can afford to buy a bike as a birthday present. The storyboard raises discussion points.
The idea can be developed as role-play activity. Alternative purchases can be given where learners have to work out if they can afford it, e.g. ‘Can we have a dog?’, ‘Can I have a new smart phone?’.

20. Income and expenditure
Activity 2: Money wise – monthly budgeting card game
See Manage money activity sheet: Money wise – monthly budgeting card game.
Learners cut out the cards that show ways they have earned and spent money, and turn them face down. They play in pairs, turn one card over at a time, and decide where to place it in their monthly budget table. Their challenge is to ensure they:
do not get into debt in any one month
break even at the end of the three months.
This means that they may have to move their cards around, or decide on something they can’t afford to buy to ensure their spending does not exceed their earnings!

21. Activity 3: Budgeting how much electricity to use
Key Stage 2 activity: Budgeting how much electricity to use
View this online activity on Hwb at
Visit Hwb for learners to do this interactive activity online.

22. Income and expenditure
Key Stage 3/4 activities:
Activity 1: Can you help Carrie and Mo to budget? (see Spending Sense)
Activity 2: ‘Managing your money’ scenarios (see Welsh Government Personal Finance Toolkit)
Activity 3: Keeping a running balance for a household (see Resource 2 from this module)
Activities have been differentiated into key stages based on context. The key stages are for guidance only and teachers should select activities to match the ability of learners. Links/explanations for activities are included on the following slides.

23. Activity 1 Can you help Carrie and Mo manage their budget?
Resource: Spending Sense, Activity 5 – Carrie and Mo (pages 39–47)
Download the resource at 23

24. Income and expenditure
Key Stage 3/4 Activity 1: Can you help Carrie and Mo to budget?
This activity raises the problem of overspending on a tight budget. The lifestyles of two young people, Carrie and Mo, are described. Each has a budget showing a typical monthly income and expenditure. The task for learners is to discuss their lifestyles and spending habits to see where they could cut down in order to balance their budget.
The following slides show snapshots of this activity.
The resource Spending Sense explains fully how the activities can be delivered in the classroom.

25. Spending Sense: Carrie and Mo (Activity 5, pages 39–47).

26. Spending Sense: Carrie and Mo (Activity 5, pages 39–47).

27. Resource: Welsh Government Personal Finance Toolkit
Activity 2
Managing your money scenarios
Resource: Welsh Government Personal Finance Toolkit
See Topic 3 ‘Managing your money’ (pages 29–33) along with the accompanying resource sheets within Topic 3 entitled ‘Manage my cash’ (pages 31–34).
Download the resource at
The activity (described on page 32) offers four scenarios describing young people’s financial situations. Learners suggest ways in which they could manage their money more successfully. Examples of the scenarios are given on the next slides
The link here can be used to access the resource entitled Welsh Government Personal Finance Toolkit and must be used with the accompanying resource sheets that supplement the activities described. Full details of how to deliver the activities are provided within the toolkit. 27

28. Welsh Government Personal Finance Toolkit (Topic 3: pages 29–33) entitled ‘Managing your money’ and the resource sheets accompanying the toolkit (Topic 3: pages 31–34) entitled ‘Manage my cash’.
The screenshot here is from page 31 from the resource sheets.

29. Welsh Government Personal Finance Toolkit (Topic 3: pages 29–33) entitled ‘Managing your money’ and the resource sheets accompanying the toolkit (Topic 3: pages 31–34) entitled ‘Manage my cash’.

30. Welsh Government Personal Finance Toolkit (Topic 3: pages 29–33) entitled ‘Managing your money’ and the resource sheets accompanying the toolkit (Topic 3: pages 31–34) entitled ‘Manage my cash’.
The screenshot here is from page 32 from the resource sheets.

31. Welsh Government Personal Finance Toolkit (Topic 3: pages 29–33) entitled ‘Managing your money’ and the resource sheets accompanying the toolkit (Topic 3: pages 31–34) entitled ‘Manage my cash’.
The screenshot here is from page 33 from the resource sheets.

32. Welsh Government Personal Finance Toolkit (Topic 3: pages 29–33) entitled ‘Managing your money’ and the resource sheets accompanying the toolkit (Topic 3: pages 31–34) entitled ‘Manage my cash’.
The screenshot here is from page 34 from the resource sheets.

33. Activity 3 Keeping a running balance for a household
Resource: Keeping a running balance (see Resource 2 within this module)
This activity presents learners with a diary style account of the transactions that take place during one month, from the view point of a working adult with three children. Learners have to read the information and keep a running a balance in the form of a table by calculating the money paid in and paid out of a bank account. 33

34. Keeping a running balance
Mrs Jones is a very busy parent and the information given is one month in her life (print off Resource 2 ‘Keeping a running balance’).
The information indicates how much is paid in (income) and paid out (expenditure) of her bank account.
Look carefully at each of the days given and consider the transactions that take place.
Using the table, carry out a running balance to help her keep track of her money.
The resource can be printed off, laminated and cut out to give learners individual cards. Alternatively the resource can be laminated as five A4 sheets and the learners can work on a week at a time.
Date
Paid in
Paid out
Balance
Examples of the first week are given on the next slide.

35. Council tax needs to be paid. £142 Paid by direct debit.
1 August
You have both been paid.
£3012
3 August
Council tax needs to be paid.
£142
Paid by direct debit.
Food shopping.
£112
Paid with debit card.
4 August
Mortgage payments goes out.
£1215
5 August
Utility bill day!
Gas: £72
Electricity: £59
Water: £45.10
All paid monthly by direct debit.
7 August
Child benefit.
You have three children.
£20.30 for the first child per week.
£13.40 for the other children.
Note: child benefit is paid every 4 weeks.
This is the first week. Learners have to record each transaction as a paid in or paid out and keep a running balance.

36. Adding up to a lifetime www.addinguptoalifetime.org.uk
This is a free online resource which follows four characters and how they deal with financial situations. It is suitable for Key Stage 3 to Key Stage 5. The package has approximately 25 hours of learning activities which learners can complete online. It is presented as five modules:
Life as a student (aged 14 upwards)
Working life
Relationships
New life
Active retirement.
The modules offer the whole range of manage money topics including budgeting, visit
Each module has an audio tutorial which can be listened to in English or Welsh.

37. Websites and resources
pfeg (Personal Finance Education Group) an independent charity providing a wealth of resources to support financial education in schools.
Barclays Money Skills Key Stage 2 and Key Stage 3 Resource Packs (download) – needs/wants and essential/non-essential activities available within these packs.
Finance Skills: games, factsheets* and worksheets* for learners aged 4 to (printable resources and online games). For budgeting activities see Money Maths – Balancing Budgets (12–14) and Family Budget Factsheet (7–11). *Welsh versions available.
The modules offer the whole range of manage money topics including budgeting.
/maths/financial-literacy//lets-cut-back/index.html Key Stage 2 Science Activity: Looking at budgeting via household electricity usage.
Information on managing your money as a student.
A free interactive online programme providing resources to support learners manage their money.