1.3 Financial problems and drawing up a budget  (Page 2/3)

a. How many different combinations of 2 different items could they make if there were pencils, rulers, erasers, sharpeners, glue sticks and pairs of scissors in the box? Try to write down a systematic way of working out the answer. Then compare your method with that of a friend.

5. BUDGETS:

Should Grade 4 learners worry about a simple budget? Yes, they should become aware that it is necessary to plan concerning one’s money.

What is a budget? It’s a plan to show what money will come in, and what will be spent.

5.1 GROUP WORK: AN INVESTIGATION

How do I go about drawing up a budget? See the budget lay-out below. Discuss it and then fill in likely amounts.

BUDGET FOR A FAMILY OF FOUR PEOPLE FOR ONE MONTH

Take the “Total Spent” away from the “Total Income”. What’s left for a holiday or entertainment? (Now are you going to beg for another video and expensive “takkies”?)

• Now we shall do some practical research to complete a project.

PROJECT: BUDGETS: USE YOUR KNOWLEDGE

All the items mentioned in this project must be worked to the nearest whole rand. (So if Coke costs R15,99 you will call it R16.)

You and some friends are going to prepare the evening meal for Mother’s Day. There will be twelve people altogether at this meal. Your older sister says she will help you with the stove, and your father says that if you have a braai, he will see to the fire. You earn money to buy food for the meal. Altogether you have R150. Now you are going to draw up a budget or plan to show how you think you will spend the money.

a. First you need to decide whether you want to cook inside or have a braai. Look at the money! At the time of writing, twelve lamb chops and some sausage could easily cost R100. On the other hand, if you made savory mince or cottage pie or bobotie or spaghetti bolognaise, one and a half kg of mince would probably cost about R25. Now make a list of all the things you want to buy.

1. Now decide how much of each item you need. Write the amount next to the item in your list.

c. Now look at the advertisements of a local chain store in the paper, or visit a store and work out how much each item will cost. Also decide which is cheaper e.g. tins of Coke or bottles, and which size you want. Remember, you cannot spend more than your Income. Decide which items you simply must have.

Make a new list with the most important items first. Write down the amount and the cost of each item. (Maybe you would like to consult an older person.)

d. Now draw up your budget by filling in the table below. First write R150 under “ Actual Income”. That is all you have to spend! Now write down all the things that you want to buy under the heading, “Expenditure”. Start with the most important item. Write the total price of each item under the heading, “Cost in R”