Sam gets the train to work each morning (Mon–Fri).
Before boarding, Sam buys a coffee and a croissant from the coffee shop in the station.
Session 3: Where Does All The Money Go?
Start thinking: Is this this an acceptable routine or not? Why?
Here is what that routine costs every day:
Coffee
£3.95
Croissant
£1.25
= £5.20 PER DAY
+
Now add it up…
£5.20
PER DAY
Small expenses that may not seem a lot add up over time.
Has this changed your answer from the start?
£26
PER WEEK
£1,352
PER YEAR
Money doesn’t vanish. It leaks.
It is important to take control of where it goes by properly managing and budgeting your money.
Today’s Big Question:
Why does money disappear even when
you don’t buy anything big?
Why does money disappear even when you don’t buy anything big?
PATHWAY 1
How to Budget Your Life
10 mins
PATHWAY 2
The Latte Effect: Small Habits,
Big Impact
10 mins
Finished? Try the budget builder minigame.
Budget Challenge
In pairs, sort the expenditures into three categories:
Essential | Desirable | Future You (Savings) |
Expenditure that MUST be paid monthly. | Not essential, but promotes a good standard of living. | Money set aside now rather than spent - even though nothing is bought. |
Be ready to justify every choice!
Rent £900/month | Council Tax £150/month | Gas & Electricity £120/month |
Long-Term Savings | Groceries £120/month | Home Broadband £35/month |
Mobile Phone £30/month | Takeaways/Eating Out £80/month | Car Finance £250/month |
Emergency Fund Top-Up £50/month | Road Tax £18/month | Workplace Pension £100/month |
Streaming Service £25/month | Clothing & Footwear £50/month | Haircuts & Personal Care £30/month |
Fuel (Petrol/Diesel) £100/month | Car Insurance £80/month | TV License £14/month |
MOT & Maintenance £25/month | Public Transport £60/month | Gym Membership £35/month |
Essential |
TV License £14/month |
Gas & Electricity £120/month |
Groceries £120/month |
Council Tax £150/month |
Rent £900/month |
Car Insurance £80/month |
Takeaways/Eating Out £80/month |
Public Transport £60/month |
Car Finance £250/month |
Home Broadband £35/month |
Desirable |
Clothing & Footwear £50/month |
Road Tax £18/month |
MOT & Maintenance £25/month |
Mobile Phone £30/month |
Haircuts & Personal Care £30/month |
Fuel (Petrol/Diesel) £100/month |
Gym Membership £35/month |
Streaming Service £25/month |
Future You |
Workplace Pension £100/month |
Emergency Fund Top-Up £50/month |
Long-Term Savings |
Budget Challenge
Now, add up the cost of your essential expenditures - what is your total?
Median (average) monthly wage in Scotland = £2,580
CONSIDERATION 1
Does your budget still work? Can
you fit your essentials into 50%
of £2,580?
Your essential costs (needs) should use no more than 50% of your budget.
CONSIDERATION 2
Monthly wage for workers on minimum wage
in Scotland = £1,750
(11% of Scottish workers earn this)
Does your budget still work? Can
you fit your essentials into 50%
of £1,750?
Your essential costs (needs) should use no more than 50% of your budget.
WE HAVE COVERED:
Learner Journal
Part 1: Three Things I Learnt Today
Open your Learner Journal. Write down three things you learnt. These can be facts, ideas, or things that surprised you.
What is one habit you could change
to improve your financial future?
Write your response in your Learner Journal, then finish sections 3-5.
Learner Journal
Part 2: Reflective Question
"Doing well with money has a little to do with how smart you are and a lot to do with how you behave.” Morgan Housel, author (2020)
Money doesn't just disappear, it follows your daily habits and behavior. When you take control of your financial habits, you take control of your future.
Lock-In Quote
Extension Activities
Extension 1
Extension 2
Nature’s Super Savers
The City & The Sea