Mathematics and Personal Finance


History Introduction Significance

Geometry Interest and Rates of Return Budgeting Compound Interest Video

Budgeting

     Below is attached a pdf of a real 7th grade math project that is available thanks to Clearview School District. This school district is in Ohio and this project can be found through their website.


In order to connect mathematics to personal finance and ensure that students are learning skills that they will use in the future, projects such as this need to be integrated into the classroom.

     Going through this project we will find that secondary math and personal finance go hand in hand. As we walk through each step, try to identify the mathematical skills taught in a classroom that are necessary for creating a budget.

Part one: Declaring an annual income. The estimated annual income for a high school mathematics teacher in the state of Utah is $30,000 (mathteacheredu.org).

Part two: Knowing an annual income for a high school mathematics teacher is $30,000, we can find that the monthly income is roughly $2,500. We find this by using the equation

\( monthly\ income={annual\ income \over 12\ months}={30,000 \over 12}=2,500\)

Now if taxes are 22% then after taxes are taken out, the monthly income for this teacher would be $1,950. This is found by using the equation,

\(monthly\ income\ after\ taxes =\) \((gross\ monthly\ income) (taxes)=(2500)(0.22)=1950\)


Part three: In Logan, Utah there is an apartment for rent for $1,050 a month. This would leave the teacher with $900 a month.

Part four: At Wilsons dealership there is a 2016 Hyundai Accent SE Sedan with 88,000 miles and in good condition. They have it listed at $11,357 but there is the financing option that would make it $159/month for about 6 years.

Part five: In this part the student is asked to find the price of a cable bill, internet bill, cell phone bill, electric bill, gas bill, water bill, and groceries for a month. From the website move.org/utility-bills-101/ it was found that cable is $85, internet is $60, electric bill is $114, gas is $60, and water bill is $70 (Roberts). From my own experience groceries are about $130 a month and my phone bill is $15 through mint mobile.

Part six: Now in part six the student would have to do all the calculations to create a budget for a person with the given profession they chose. This would require solving algebraic formulas, estimations, and factoring in other wants or needs this person may have.

     Now in a classroom setting this project would demonstrate a lot more thorough research than the example above and would include thought out mathematical calculations. However, as you reflect on the project and other projects that can be used in a secondary mathematics classroom, understand that the foundation of personal finance is mathematics, and more specifically algebra.