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8th Grade Financial Literacy Homework Week 4: 08/28 – 09/01

Name: __________________________________ Advisory: _______________________________________

Grade 8 Financial Literacy HomeworkHomework Expectations

Homework is an opportunity to practice skills, build knowledge, and reinforce learning. Homework is a weekly process.

o Prepsters receive all homework packets on Monday. o They work on these packets each day and turn them in on the following Monday.o Prepsters are responsible for keeping up with each packet. To help prepsters

stay organized, advisors check homework packets each morning as part of supply check.

Homework is designed such that prepsters complete 20-30 minutes each nighto However, prepsters have the independence to choose what sections they

complete when.o Prepsters are responsible for managing their time so that homework is

completed and ready to turn in each Monday. Prepsters know that homework is graded for both completion and accuracy.

o So, they check all parts of the packet for completeness (headings, following directions, professionalism).

o Prepsters also double-check and revise their answers throughout the week. o Prepsters use resources to be successful on all parts of the homework.

Prepsters know that homework is an independent assignment. o While prepsters are encouraged to ask questions and seek guidance from their

teachers and advisors, they do not work together or share answers. o Sharing answers and copying work is a violation of the honor code.

Pacing Guide and Signature

Monday Complete part 1. X: _____________________________________

Tuesday Complete part 2 X: _____________________________________

Wednesday Complete part 3 X: _____________________________________

ThursdayComplete part 4a

X: _____________________________________

Friday Complete part 4b X: _____________________________________

Weekly Objectives


Monday VNCS 8.1-4, Scarcity

PWBAT Explain how individuals and institutions allocate money given limited resources, explain why a choice must be made and decide how to allocate money in a budget.

TuesdayRI 8.1, W 8.3, Informational/Writing

PWBAT annotate complex text using WHAM technique

Wednesday VNCS 8.1, Scarcity

PWBAT describe the trade-offs made in various financial situations, and identify the opportunity costs of decisions.

ThursdayRI 8.1, W 8.3, Informational/Writing

PWBAT annotate complex text using WHAM technique

Friday VNCS 8.1-4, Scarcity

PWBAT identify the marginal benefit of buying and consuming additional goods. Contrast this with the marginal cost of acquiring the same goods

Part 1: Directions Read the article entitled “What is a Personal Budget?”. Use the attached Cornell notes template to annotate, question and summarize. There must be at least 4 leading questions. Ask Dr. Lowe for extra Cornell Templates if needed.

What Is a Personal Budget?Just like companies need a budget, individuals need to have an understanding of how much money they're earning and what their expenses are. A personal budget is an analysis of income or money available and how that money is spent. In creating a personal budget, it is important to establish a savings and donation plan. Additionally, it is important to evaluate expenses and understand which expenses can be decreased, if necessary. To create an effective budget, there are four key elements.4 Steps to Creating a Personal BudgetStep 1: Know how much money you have.You need to have a clear understanding of how much money you have available before you can determine how to spend the money. All too often, people look at how much is deposited on payday or what amount is written on their paycheck. They assume they have that much money to


spend. This type of money management causes people to live paycheck-to-paycheck without having a plan to effectively manage their money.The first step to creating a personal budget is to have a clear, definite amount of money you earn. This can be challenging if your pay amount changes or varies. If that is true for you, look at how much you have been earning and make adjustments for any changes. For instance, if you typically earn $500 a week but you just received a raise and expect to earn $600 a week, that's the amount you'll put in your budget. Likewise, if you have been earning $500 a week but think your hours will drop and your pay will decrease to $400 a week, you will use $400 a week income to create your budget.Step 2: Determine a savings and charitable donation amount.Every expert will tell you to pay yourself first. However, establishing the amount you want to put in savings and the amount you want to contribute to a charitable or religious organization is important. If you were to make this the fourth step, it's probable there wouldn't be any money left. It is critical to put some money into savings with every paycheck, even if the amount is very small. This habit will allow you to build security and have resources available in case of an emergency or unexpected financial need. In a similar manner, giving to an important cause helps you gain greater self-control and generosity and also changes how you view money.Step 3: Determine the essential expenses (needs).Within each of our lives, there are non-negotiable expenses that must be paid. These types of expenses include mortgages, car payments, utilities, set fees, and monthly expenses. It also includes food, clothing, household repairs, and other necessary costs that may not happen every month but need to be considered and included in the budget.Step 4: Determine the non-essential expenses (wants).The non-essential expenses should be budgeted last because they're usually flexible. Non-essential expenses include entertainment, fun expenses, and items you want but are not necessary for survival. Non-essential expenses can be cut if money runs out or if an expense pops up that you didn't expect. For instance, if your car unexpectedly needs tires,


you may have to cut non-essential expenditures to cover the purchase.Budget ExampleYou've decided you want to be more in control of where your money is going, how much you have to spend, and create a savings plan. It's time to create a personal budget.▪You know you bring home $3000 every month. This is how much money

you have to work with.▪You want to contribute 10% of your income to charity and another 10%

to savings. That means you will donate $300 and put $300 in savings each month. Just making that decision and determining the amount you will commit to donations and savings makes you feel more in control of your finances. That leaves you with $2400 a month.

▪You add together all of your essential expenses: rent is $800, utilities are $250, food is $250, and payments total $300. Your total essential expenses equal $1600. This leaves you with $800 a month.

▪You are surprised there is so much left because you've been running out of money each month. By being clear on the other expenses and expenditures, you know exactly how much disposable income you have to spend on non-essential expenses. You decide to budget $150 to spend each week. At $150 per week, you'll spend $600 and have about $200 extra. This will allow you to go out to eat, enjoy a movie or other entertainment, and go out with friends, while still having a little slush in case something unexpected comes up.

Lesson SummaryIt's important to know how much money you are bringing in every month and what amounts you want to allow for savings and charitable donations. By gathering this data first, you can create a solid budget that allows you to be clear on what you have to save, give, and spend on essential and non-essential items. When creating a personal budget, you must be honest in determining what expenses are needs versus wants. Those expenses will go into separate categories that will allow you to evaluate what costs you could cut, if necessary.


Part 2: Directions Solve two step linear equations… Show your work!

1. 6.3= -4.7x

2. 2.2x =−6.6

3. 4.5x = 8.1

4. -3 ¾ = -6 ¼ + 1/8 x

5. -0.05 – x/2.6 =0.03

6.

7. 3.07=0.3 x−4.6

8. 79=78− x9

9. −1.8=4.5+ x2.3

10. 3 13 +2 19v=−4

9

Part 3: Directions Explain the graph below by describing it’s variables and text. What happens when the curve lines shift? What is the equilibrium value? How does a shortage occur? What is a price ceiling? Who caused it, and why? Complete Cornell notes template by annotating questions and summarizing appropriately.

x−2.14

+0.86=6.32


Part 4: Directions

a. Close read and annotate the article entitled “Production Possibility Frontier (PPF)”.

b. Annotate text below and use Cornell Notes to answer at least 3 guiding questions that you develop. Summarize accordingly.

Production Possibility Frontier (PPF)In the field of macroeconomics, the production possibility frontier (PPF) represents the point at which a country’s economy is most efficiently producing its goods and services and, therefore, allocating its resources in the best way possible. There are just enough apple orchards producing apples, just enough car factories making cars, and just enough accountants offering tax services. If the economy is not producing the quantities indicated by the PPF, resources are being managed inefficiently and the stability of the economy will dwindle. The production possibility frontier shows us that there are limits to production, so an economy, to achieve efficiency, must decide what combination of goods and services can and should be produced.Let's turn to an example and consider the chart below. Imagine an economy that can produce only two things: wine and cotton. According to the PPF, points A, B and C – all appearing on the PPF curve – represent the most efficient use of resources by the economy. For instance, producing 5 units of wine and 5 units of cotton (point B) is just as desirable as producing 3 units of wine and 7 units of cotton. Point X represents an inefficient use of resources, while point Y represents the goals that the economy simply cannot attain with its present levels of resources.


Budgets are among the most mentioned types of business documents, but why even bother with them? In this lesson, we'll look at the advantages of a good budget as well as essentials every budget should have.

What Is a Budget?Wouldn't you like to have a roadmap for your business for the future? Something that shows you exactly where you should be heading and offers a plan to get there? Luckily, that's just what a budget does. A budget is a plan that helps companies figure out where they will be with respect to finances and inventory after a given period of time. As you can imagine, there are numerous types of budgets. However, all of them have a major theme of planning for the future at the heart of them. In this lesson, we'll look not only at the benefits of budgeting, but also learn what companies must be sure to include in order to make their budgets as useful as possible.

Why Create a Budget?There are plenty of advantages of budgeting. Of course, the foremost is planning. Not only can a company plan on where its expenses are likely to be, but it can also plan on how to best encourage new sales channels. Additionally, budgets allow for companies to plan more precisely when it comes to production, including labor and materials costs. Additionally, budgets can help companies figure out which employees and processes are worthwhile and when to simply slow down operations. This can be done by looking for inefficiencies within the budgeting process. For example, if one department is showing slower than expected movement, this could be a cause for upper management to reexamine that department. It could be that the manager is inefficient, or it could be a structural issue within the company. Budgets also help companies to reinforce what they should focus on for profits. This is because budgets show where a company makes money. For instance, a well-known tech company used to include the word 'computer' in its name, but shifted away from that practice when budgets showed that it was increasingly drawing its profits from phones, music players, and tablets. Finally, a budget should be used in comparison with the end of period results in order to figure out what went right and what went wrong. Not only are budgets planning tools, but they are useful in analysis as well.

What Makes a Good Budget?So, what makes for a good budget? Since each budget is different, we'll speak more here to general themes that, while all still necessary, may not be the final analysis of what your specific budget will need. Foremost, a budget must be informed. Note that I didn't say accurate. Especially when used for planning purposes, a budget must be informed with the best knowledge that is available. That does not mean exact, necessarily, but those who look at the budget should have an informed idea of what's actually going on. Second, budgets must be accurate with the information that they do have. A flawed sales or production budget can have a ripple effect far down the company, so it is best to stop such errors before they start. Finally, a budget should be flexible. Often, companies will want to use a budget to model different scenarios so they can test if a new course of action is worth pursuing. A flexible budget allows for these hypothetical changes to quickly take place, permitting the planners to get to work with little hassle.

Lesson Summary


In this lesson, we looked at the basic concepts of a budget, or a plan that helps companies figure out where they will be with respect to finances and inventory after a given period of time, as well as the reasoning for preparing budgets. We saw that budgets had plenty of uses beyond simply paying bills or managing profits. In fact, they could be used to evaluate processes as well as plan for hypothetical scenarios. However, to do this, a budget must be informed, be accurate with the information available, and be flexible.

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