Consumer Awareness Module
Unit 2: Managing Personal Finances

Lesson 2: Making Budget Decisions

Materials Needed:

• Flipchart/newsprint paper or large board and markers
  
• Computers with Internet access
  
• Websites: http://www.pueblo.gsa.gov,
  http://www.edmunds.com,  http://www.ed.gov/pubs/Prepare/pt4.html 
  http://www.fanniemaefoundation.org 
  
• Handouts 1, 2, 3, 4
  
• Text: How to Buy a Home in the United States.  This is a free ESOL text published in Washington, DC, by the  Fannie Mae Foundation and the Center for Applied Linguistics (CAL).  It may be ordered at 1-800-544-9224. 

In this activity, students explore budget decision-making scenarios and gather information on the Internet that they use in making decisions. ESOL students should choose from the "buying a car" and
"saving for college" scenarios. The daycare and housing scenarios are geared toward AHS students.

Word Bank:
budget
afford
evaluate
differentiating
advantages
disadvantages
down payment
loan rate
loan term

Introductory Activity: Comparing ways of making decisions

Whole group discussion

• We all make decisions that affect our budget. For example, let's say you decide to buy a new car. This means that you will have to include in your budget money for monthly car payments, car insurance, and gas. How do you figure out whether you can afford a new car? 

• Think about a budget decision you had to make. How did you make the decision? As a result of the decision, did you have to change anything in your budget?

Because the scenarios for this activity are complex, you may want to devote two or three class periods to them. The class should vote on one scenario and do the exercises together as a group, with students making individual decisions at the conclusion.

• Today we're going to look at _______ (whatever scenario your students chose based on a needs assessment).

• Divide students into small groups and have them work on a second budget decision, choosing from the remaining handouts.

If your students have other current budgeting interests, you may want to prepare other scenarios for them that reflect these interests.

Activity 3: Discussing budget scenarios

• What did you learn from reading your budget scenario, getting information, and making a decision?
  
• Do you think that you will make any budget decisions differently in the future? Why or why not?

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