Budgeting for Beginners: What Does It Cost to Run a Family?

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On this second day of Financial Literacy Month, the FUTURES™ Financial Literacy Program is excited to present this fun, family-focused activity to help kids understand the budget it takes to “run a family” for a month.

Look at the list below and customize it for your family, class, or small group. As the game facilitator, you’ll guide kids in determining how much money is required to keep a family clothed, fed, housed, and busy for a month.

For families, this is a great after-dinner, road trip, or weekend activity. Jot down your family’s average or last month’s spending in each category and tuck it in your pocket to compare everyone’s predictions with actual expenses. In the classroom, this can serve as an engaging introduction to a personal finance curriculum. Teachers, you can use a hypothetical family’s expenses to discuss results as a class—or ask students to go home and talk with family members and caregivers to gain an understanding of their household’s real monthly budget.

Invite one family member or student to serve as recorder, either by taking notes, making a table, list, or chart, or recording the answers on a smart board or digital device. Kids can work in teams or independently, whatever is best for the group.

From Doctor Bills to Doughnut Thrills: Determine Your Monthly Expenses  

Ask everyone to decide how much they think it costs to pay for each of the following for a month:

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  • Rent or mortgage

  • Groceries

  • Electricity

  • Heat

  • Water bill

  • Cable or internet bill

  • Medical expenses

  • Clothing

  • Restaurants/ ordering out

  • School and after-school expenses

  • Commuting expenses

  • Extracurricular activities

Now have the students compare the estimates with a real family budget. Ask kids: What do you think about the results? Does it cost more or less than you expected to run a household? What areas take up most of the monthly budget? Are there any areas where you can cut back on expenses?

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For more information about FUTURES: Financially Literate Kids for a Financially Literate Society™ for students in kindergarten through eighth grade or to download any of the 29 sections of the program, please click below.