Zero-Based Budgeting

In this Zero-Based Budgeting worksheet activity, students will practice managing a hypothetical monthly income of $4,500. They are required to allocate this income across various categories, such as

• Groceries
• Transportation (gas, public transit)
• Dining out or fast food
• Entertainment (movies, concerts)
• Clothing and personal care
• Gifts and donations
• Hobbies and leisure activities
• Emergency fund
• Retirement savings (401(k), IRA, etc.)
• Savings for specific goals (vacation, education)
• Credit card debt
• Student loans
• Personal loans

Some expenses are fixed and cannot be adjusted, ensuring students understand the impact of non-negotiable costs. The worksheet features sliders for the adjustable categories, allowing students to distribute their remaining income based on their financial priorities and needs. The goal is for students to balance their budget perfectly, achieving a remaining balance of zero. This hands-on activity not only enhances budgeting skills but also teaches financial responsibility and prioritization.

Here is how the worksheet looks like -