Launch: Managing a Tight Budget

The role-playing activity you’re setting up is a great way for students to learn about managing financial difficulties in a practical, hands-on way. Here's an expanded outline for the activity, followed by Socratic questions to guide reflection and discussion:

Activity: Managing a Tight Budget

Objective: Students will simulate managing a household budget, prioritizing essential expenses, and making decisions about financial trade-offs.

Instructions:

1. Divide Students into Small Groups: Create groups of 3-4 students to encourage collaboration.
2. Distribute Materials: Give each group a budget sheet with a fixed monthly income and a list of mandatory and unexpected expenses. Ensure some costs are flexible (like entertainment or dining out), while others are fixed (rent, utilities, groceries, etc.). Example of Fixed Monthly Expenses:
   • Rent: $1,000
   • Groceries: $300
   • Utilities (Electricity, Water, Internet): $150
   • Insurance: $100 Unexpected Expenses:
   • Car repair: $250
   • Medical bill: $150
3. Scenario Introduction: After each group has reviewed their budget, present a scenario where they must adjust their finances:
   • You just got a medical bill, or the car broke down unexpectedly.
   • There's a temporary increase in rent or utility bills.
   • Optional: Students may also receive a "windfall" of unexpected income (like a bonus or gift), and they need to decide how to allocate it.
4. Group Discussion: Each group will discuss how to prioritize these expenses. They can decide to cut back on certain areas (e.g., eating out) or find alternative solutions to balance the budget.
5. Share Decisions: After the discussion, ask each group to share their decisions and rationale.