Chapter 14.1 (Mathematics 5)

Budget

Meaning of a Budget

Group Activity 1

Ndamu plans to have a birthday party next month. He intends to spend money on the party. Ten people will be invited to the party. Make a budget for Ndamu.

In groups of five:

  1. List the items needed for the party.
  2. Estimate the cost of the items needed.
  3. Discuss what to do when the estimated cost is more or less than the amount available.
    1. List items to be added when the money available is more than the budget.
    2. List items to be removed when money is less.
  4. Discuss final list and share with other groups.

Note

The list of items, estimated cost and the total cost is called budget.

Making a budget

Group Activity 2

Carol is preparing to go back to school after December holidays. She plans to spend Sh 2 000 to buy the items needed during a school term.

In the table are the items she would like to buy.

In groups of five, discuss the following questions from Carol’s shopping list.

  1. What are the most important items she needs to buy?
  • Toothbrush
  • Toothpaste
  • Shoe polish
  • 2 bars of soap
  • Biscuit
  • Exercise book
  • A packet of sweets
  • Pencils and pens
  • 4 toilet papers
  • Powder soap
  • Toilet soap
  1. What is the total amount of money for the things she has to buy?
    Sh 
  2. Is the amount more than Carol’s pocket money?
  3. Which items can she drop from the list if the estimate is more than Sh 2 000?
  • Toothbrush
  • Toothpaste
  • Shoe polish
  • 2 bars of soap
  • Biscuit
  • Exercise book
  • A packet of sweets
  • Pencils and pens
  • 4 toilet papers
  • Powder soap
  • Toilet soap
  1. How much more money is needed if she has to buy all the items in the shopping list?
    Sh 
  2. How much money will she have if she only buys the important items?
    Sh 

Carol’s shopping list.

Item

Amount of money (sh)

Toothbrush

120

Toothpaste

150

Shoe polish

90

2 bars of soap

300

Biscuit

350

Exercise book

200

A packet of sweets

280

Pencils and pens

250

4 toilet papers

120

Powder soap

250

Toilet soap

100

Class Activity

Your school has organised for a two-day educational trip, transport, where to sleep and what to eat will be paid for. You will be given Sh 1 000 as pocket money.

In pairs, make a list of what you would require.

Importance of a budget

Group Activity 3

In groups of five, discuss the following:

When you go for shopping

  1. Do you write a list of the items to buy?
  2. Do you pick items that are not in the list?
  3. Are the prices of the items more than the amount you had planned to spend?
  4. Do you spend less or more than the amount you had planned to spend?

Note

Importance of making a budget includes:

  1. Making an estimate of how much to spend.
  2. Remembering all the items that are needed.
  3. Spending money wisely.
  4. Saving money.
  5. Achieving a goal.
  6. Avoiding getting worried.
  7. Being ready to change an item because of the price or its availability.
  8. Making good decisions.
  9. Living within the money you have.
  10. Accounting for expenses.

Exercise A

In groups of five, discuss other reasons why a budget is important.