Budget like a boss!
You’ll need
- Pens or pencils
- A4 paper
- Calculator or phone
- Access to the internet
- Printed copies of the scenarios for each group
- Budgeting sheets (optional)
Before you begin
- Use the safety checklist to help you plan and risk assess your activity. There’s also more guidance to help you carry out your risk assessment, including examples.
- Make sure all young people and adults involved in the activity know how to take part safely.
- Make sure you’ll have enough adult helpers. You may need some parents and carers to help.
Planning and setting up this activity
- Print out copies of the scenarios, enough for one set per group. You could also print a budgeting sheet for each group to use.
Aim of the activity
This activity aims to help young people learn about money by trying out real-life budgeting situations.
In teams, they’ll work through three different challenges. Each one gives them a set amount of money and a goal to reach. They’ll practise managing money, making smart choices, and seeing how their decisions affect their budget.
How to manage money
- Financial planning and budgeting
- Paying, borrowing and saving
Understanding the Important Role Money plays in our Lives
- Links between work, life choices and financial planning
Running this activity
- Get into small groups.
- Make sure each team has pens and paper, access to a calculator and devices with access to the internet to check product prices.
- Each group should choose three budgeting scenarios. In each scenario, they'll have a set amount of money and a goal to reach.
- The team that manages to achieve their goal with the most money let over will win.
- Work together to find some accurate costs online, then plan how to spend your budget. You could use the budgeting sheet to help you.
- At the end of each one, work out how much money you have got left over.
- When everyone’s finished their three budgets, gather back together as a whole group.
- Each team should present their budgets and explain how they prioritised their spending. See which team had the most money left over from the budget, but make sure they didn’t miss anything out!
- If you wanted to, you could see if you could fundraise a small amount of money, then spend it to gather donations for a local charity, such as a food bank, toy appeal or pet rescue. You could see which group could get the most items for their money.
Objective: Plan a 7-day holiday for two people.
Budget: £2,500
Considerations:
- Flights
- Accommodation
- Meals
- Activities
- Travel insurance
Guidance: Research current travel deals, making sure to consider the time of year and location.
Objective: Purchase a suitable vehicle for a 17-year-old.
Budget: £5,000
Considerations:
- Mode of transport (such as a car, moped, bike, electric bike)
- Purchase price
- Insurance
- Road tax and MOT
- Fuel or electric charging points
- Maintenance and repairs
- Any safety equipment (such as a helmet, lock, back protector)
Guidance:
- You might want to research and compare a few different modes of transport.
- Some options might give you more independence or be more convenient, but they might have higher ongoing costs (such as repairs or insurance)
- Different cars cost more or less to run and own. For example, the insurance group a car is in will affect how much you pay.
Objective: Prepare for the first year of university by buying household basics for a student flat.
Budget: £1,000
Considerations:
- Kitchenware (such as pans, cutlery, kettles)
- Bedding
- Cleaning supplies
- Bathroom essentials (such as toiletries or towels)
- IT equipment (such as a laptop or headphones)
- Additional costs (such as a TV licence, storage or contents insurance)
Guidance: You’ll need to prioritise essential items, especially what you'll need in the first few weeks. Make sure to have some of the budget saved for any unexpected costs. Some costs might be split between the flat, such as a kettle. Some places may have some of the basics provided, such as a vacuum cleaner, and you may be able to use some items from home. If your home has contents insurance already, this might cover you while at university too.
Objective: Organise a birthday party for 20 guests.
Budget: £500
Considerations:
- Venue
- Catering
- Entertainment
- Decorations
- Invitations
Guidance: You'll need to balance quality and cost, and you may have to choose one thing over another too.
Objective: Budget for the first year of owning a dog.
Budget: £2,800
Considerations:
- Initial setup (such as a bed, lead, collar)
- Vaccinations and microchipping
- Food
- Grooming and supplies
- Pet insurance
- Annual vet check-up
- Any ongoing vet bills or emergency care
- Training and socialisation
- Pet boarding or daycare
- Toys and accessories
Guidance: Always consider the ongoing financial commitment of pet ownership and the importance of budgeting for both expected and unexpected expenses. You can use Pets at Home’s guide for the costs of owning different animals or costs of owning a dog.
Budget: £400 monthly income from a weekend job
Goal: Save £800 in 6 months for a new laptop or festival trip
Monthly expenses to consider:
- Phone bill
- Travel (such as a bus or train pass)
- Social life (such as going to the cinema, an escape room or dinner out)
- Subscriptions (such as Spotify or Netflix)
- Clothes or personal items
- Unexpected costs (such as replacing headphones)
- Any rent or contribution to household costs (such as food)
This activity may touch on sensitive topics, such as food, money or food banks, which some young people or their families might be affected by.
It’s important to create a safe, positive and supportive space where everyone feels comfortable. Let everyone know it’s okay to ask questions, say if they feel unsure, or step away at any time. Always follow the Yellow Card.
You might need to make adjustments, such as:
- Tell people about the activity in advance
- Offer the option to leave or do an alternative activity
- Speak with parents or carers beforehand
- Remind everyone they can talk to a trusted adult if they’re upset or worried
You can offer trusted support services if needed, such as Childline (0800 1111), Citizen’s Advice (0808 223 1133) and Crimestoppers (0800 555 111).
The Trussell Trust is a great place to start looking for a food bank near you. You can find details of independent food banks online. The UK Government have some debt advice support too.
Make sure that all adult volunteers and young leaders keep all discussions age-appropriate and supportive.
Reflection
This activity was all about budgeting and developing your financial literacy skills. You worked in a team to try to solve three real-life money challenges and stick within your budget. You researched real prices, prioritised, and figured out what you could afford.
Here's some questions you can use to help you reflect:
- What was the hardest decision your team had to make? Was it easy or difficult to agree what to spend money on? Did you have to make any compromises?
- What strategies did you use to stay within budget?
- Would you do anything differently if you did it again?
- How might someone’s job or income affect their ability to make these kinds of choices in real life?
Safety
All activities must be safely managed. You must complete a thorough risk assessment and take appropriate steps to reduce risk. Use the safety checklist to help you plan and risk assess your activity. Always get approval for the activity, and have suitable supervision and an InTouch process.
You must run your activities in line with the Safeguarding Code of Conduct for Adults (Yellow Card) and report any concerns to the UK HQ Safeguarding Team.
- Online safety
Supervise young people when they’re online and give them advice about staying safe. Take a look at our online safety or bullying guidance. The NSPCC offers more advice and guidance, too. If you want to know more about specific social networks and games, Childnet has information and safety tips for apps. You can also report anything that’s worried you online to the Child Exploitation and Online Protection Command. As always, if you’ve got concerns about a young person’s welfare, including their online experiences, follow the Yellow Card to make a report.
Make it accessible
All Scout activities should be inclusive and accessible.
If you enjoyed this activity, why not try out our other HSBC money skills activities.