PERSONAL BUDGET
TechnOption
PURPOSE:

to use a spreadsheet to calculate and manipulate data

to investigate the effect of certain circumstances on a personal budget
READY?
You and your participants are ready for this exercise when you have completed the “Personal
Budget” activity. You should be able to enter data into a computerized spreadsheet and show
others how to do so. This is one of the simplest of the TechnOptions and a good starting point for
using the templates.
MATERIALS:

hand-written and calculated personal budget charts (1 per participant)

calculators (1 per pair of participants)

“What If?” sheets (1 per participant)
TECHNOLOGY:

Microsoft ® Excel software

“Personal Budget Monthly Chart”

participants’ storage disks (optional)

computer and printer
TIME:
90-120 minutes
PROCEDURE:
1. Set up computer stations; each computer should have Microsoft ® Excel installed on its
hard drive and a copy of the “Personal Budget Monthly Chart” available. Have
participants work in pairs or in the smallest groups possible given the number of
computers available.
2. After participants have completed the “Personal Budget” exercise and calculated a
month’s income and expenses by hand, explain that they will now have a chance to use a
computer spreadsheet to perform the same calculations.
3. Help students locate and open the “Personal Budget Monthly Chart” file. On the screen
they should see a spreadsheet template that looks like the chart they completed in the
Copyright © 1993-2005 CFED/REAL
PERSONAL BUDGET (TO) p. 1
budget exercise.
4. Have participants transfer the data from their hand-written budget onto the spreadsheet
and observe what the computer does with the data. After all figures have been entered,
participants should print a copy of the spreadsheet and compare it to their hand-written
work if possible.
5. Distribute copies of the “What If?” statements for this exercise and allow participants time
to investigate each scenario using the spreadsheet.
REFLECTION:
Lead a discussion of this segment of the activity using questions such as:

What are the advantages of using technology for this chore?

If you’ve never used a computer spreadsheet before, what was the experience like?
What did you learn?

In what ways would having an up-to-the-minute computerized record of your personal
budget affect your spending?

Is this a tool you could see yourself using consistently? Why/Why not?

How could this technology be used in a business setting?
BRIDGES:

This activity is a good introduction to spreadsheets—participants who have never used
them will enjoy seeing the computer do the work.

Eventually, students will want to learn to set up their own spreadsheets. This one
contains simple formulas and could be used in an introductory session.

The TechnOption “Techno Detecto” is a scavenger hunt that allows students to browse
through the REAL computer templates for information. Consider having participants
complete “Techno Detecto” before the computer work for “Personal Budget” so that
they’re familiar with the software.
Copyright © 1993-2005 CFED/REAL
PERSONAL BUDGET (TO) p. 2
WHAT IF?
1. You get a raise of $50 per week. Besides increasing your total income for each period by
$50, what other effect would this have on your budget? Make the change on the
spreadsheet and describe the effect(s).
2. You take up an expensive hobby (like downhill skiing or midget car racing), which costs
you an additional $75 per week. Add this expense to your spreadsheet and track its effect
for the month. What is the overall impact on your monthly budget? Without an additional
source of income, how could you adjust your budget to accommodate this new expense?
What are some ways you could increase your income to support your new hobby?
3. You get a ticket for speeding and your car insurance increases by 30%. Starting with your
current rate, calculate your new rate and your monthly expense for car insurance. How
will you adjust your budget to weather this difficulty? Record the adjustment on your
spreadsheet.
4. A good friend is going on a trip to France one year from now. You would like to go too,
but know you will have to budget carefully in order to do so. The trip will cost $2,750
overall, and you must pay a deposit of 15% within 3 months. The balance will be due on
departure. Come up with a plan to pay for the trip (and the deposit), which suits your
budget.
5. You decide to start a small business. Judging from the information you’ve gathered about
your budget, how much of your personal money will you be able (and willing) to put
toward start-up? Will that be enough money, or will you need a loan? If so, how much will
you borrow, and how will you use the money?
Copyright © 1993-2005 CFED/REAL
PERSONAL BUDGET (TO) p. 3