This activity is designed for small groups of four or five students. Each group will be given a budget of $2000 to spend on items in specific categories. They will find these items to buy using newspapers, magazines, and sale ads provided by the teacher. Each member of the group is given a required category of items to purchase. They will record these purchases on the spending logs provided in this lesson packet. The group must buy the required amount of products and stay within the budget, using problem solving skills to adjust the budget as needed.
At the conclusion of this activity, a comparison among the groups will be made to see which of the groups stayed the closest to $2000, not going over more than $100.
Students will be adding, subtracting, multiplying, and dividing decimals in the form of money along with getting a real world perspective of budgeting. The teacher can choose whether or not to incorporate the use of sales tax depending on their students.