For each item, circle N (Need) or W (Want) and write one sentence explaining your classification. Remember: context matters. A bus pass might be a Need for a family without a car.
| Item | N or W | Why? |
|---|---|---|
| Rent payment | N W | |
| Streaming subscription | N W | |
| School books | N W | |
| Brand-name sneakers | N W | |
| Prescription medicine | N W | |
| Birthday gift for a friend | N W | |
| Bus pass to get to school | N W | |
| Savings deposit | N W |
Monthly income (allowance, earnings, or given amount): $ _______
Fill in the budget table. Every row must have a N or W label.
| Expense | N or W | Planned Amount |
|---|---|---|
| Savings (pay yourself first) | N | $ _______ |
| N W | $ _______ | |
| N W | $ _______ | |
| N W | $ _______ | |
| N W | $ _______ | |
| N W | $ _______ | |
| Total | $ _______ |
Total income minus total planned spending: $ _______ (this should be zero or positive — why?) _______________________________________________
Name one thing you want to save for: _______________________ Cost: $ _______
Amount you can save per week: $ _______
Number of weeks to reach your goal: $ _______ divided by $ _______ per week = _______ weeks
What will you give up or reduce to make room for this savings? _______________________________________________
The tradeoff is what you give up when you choose to spend money on something. Every dollar spent on one thing is a dollar not spent on something else. Write the tradeoff for one decision from your budget:
If I spend $ _______ on _______________, I cannot spend that money on _______________. That is the tradeoff I am choosing to make.
Documented fact: The Freedman's Bank (1865-1874) was established to help formerly enslaved Black Americans save money. By 1874, approximately 61,000 Black Americans had deposited over $3.7 million in the bank. Then the bank failed due to mismanagement — and the depositors lost their money. What does this history tell you about why Black communities have sometimes been cautious about banks? Name one specific thing this history documents:
Monthly gross income (what you earn before taxes): $ _______
Estimated taxes and deductions (approximately 25%): - $ _______
Net monthly income (what you actually take home): = $ _______
Show your calculation for the tax estimate: _______________________________________________
Your net income: $ _______
| Category | Percentage | Dollar Amount | Your Actual Plan |
|---|---|---|---|
| Needs (housing, food, transportation, utilities) | 50% | $ _______ | $ _______ |
| Wants (entertainment, dining out, subscriptions) | 30% | $ _______ | $ _______ |
| Savings and debt payoff | 20% | $ _______ | $ _______ |
If your actual needs exceed 50%, what must change? _______________________________________________
Scenario A — Savings account (interest earned):
You deposit $800 in a savings account that earns 3% annual interest. How much interest do you earn in 2 years?
P = _______ R = _______ T = _______ I = P x R x T = _______
Total in account after 2 years: $ _______
Scenario B — Credit card (interest owed):
You carry a $400 balance on a credit card that charges 24% annual interest. You pay nothing for 1 year. How much do you now owe?
P = _______ R = _______ T = _______ I = _______
Total owed after 1 year: $ _______
What does this calculation tell you about carrying a credit card balance? _______________________________________________
Your monthly needs total: $ _______
3-month emergency fund target: $ _______ x 3 = $ _______
6-month emergency fund target: $ _______ x 6 = $ _______
If you save $ _______ per month, how many months to reach your 3-month fund? _______ months
In 1921, the Greenwood District of Tulsa, Oklahoma — known as "Black Wall Street" — was destroyed by a violent mob over two days. Documented property losses exceeded $1.8 million in 1921 dollars (equivalent to over $30 million today). 35 blocks of Black-owned businesses and 1,256 homes were burned. Survivors received no government restitution. Using the concept of compound interest: if those businesses had continued operating and their owners had been able to invest even $1,000 each at 5% annual growth for the 100 years between 1921 and 2021, what would that investment be worth? (Use a calculator if needed.) What does this calculation document about the long-term economic impact of racial violence?
Calculated value: $ _______ What this documents: _______________________________________________
Problem A: You invest $2,000 at age 18 in an index fund that averages 8% annual return, compounded annually. What is it worth at age 65 (47 years later)?
Show setup: A = 2000(1 + 0.08/1)^(1 x 47) = _______
Value at 65: $ _______
If you had waited until age 28 to invest the same $2,000 (37 years), what would it be worth at 65? $ _______
The cost of waiting 10 years: $ _______ What does this tell you about time in the market? _______________________________________________
| Assets (What You Own) | Value | Liabilities (What You Owe) | Amount |
|---|---|---|---|
| Cash / savings | $ _______ | Student loan | $ _______ |
| Investments / retirement | $ _______ | Credit card balance | $ _______ |
| Vehicle (current value) | $ _______ | Car loan remaining | $ _______ |
| Other assets | $ _______ | Other debts | $ _______ |
| Total Assets | $ _______ | Total Liabilities | $ _______ |
Net Worth = Total Assets - Total Liabilities = $ _______ - $ _______ = $ _______
Is your net worth positive or negative? _______ What would need to change to improve it by $5,000 in one year? _______________________________________________
Payment history (35% of score): Have you ever made a late payment? YES / NO
Credit utilization (30%): Total credit limit: $ _______ Total balance used: $ _______ Utilization %: _______% (should stay below 30%)
Recommended action to improve your utilization: _______________________________________________
Length of history (15%): Your oldest credit account is _______ years old. How does this affect your score? _______________________________________________
A buying cooperative pools money to buy in bulk, reducing costs for all members. 12 families each contribute $150/month to a food co-op. Together they have $ _______ per month to spend.
If a 50-pound bag of rice costs $22 wholesale (versus $0.89/lb retail = $44.50 for 50 lbs), what is the co-op's savings per bag? $ _______
Over 12 months, if the co-op buys 4 bags of rice per month, what are the total documented savings? $ _______
Name one documented example of a successful cooperative business model in Black American history (research: Fannie Lou Hamer's Freedom Farm Cooperative, the Nation of Islam's business network, or the Mondragon Corporation model):
Documented research (Federal Reserve Survey of Consumer Finances, 2019): The median white family has 8 times the wealth of the median Black family. The racial wealth gap exists because wealth compounds over generations, and documented policies (redlining, exclusion from the GI Bill, discriminatory lending, discriminatory zoning) blocked Black families from the wealth-building tools that white families could access. Using your compound interest formula: if a family was prevented from buying a $15,000 home in 1950 due to redlining (and that home would now be worth $400,000 in 2024), what was the documented cost of that denied purchase in terms of lost wealth? Now consider: what tools does your generation have access to that prior generations did not?