The President’s Budget – Budget, Borrow, Spend, Save Economics The President’s Budget – Budget, Borrow, Spend, Save

Introduction Carver Elementary costs money to run. Roads also cost money. Most schools and roads are paid for by the government. Where does the government find money for schools and roads?

Introduction Every person who works in our country pays a part of his or her income to the government. This payment is called a tax. The people who make up the government have to make decisions about how to spend that money. These decisions eventually are expressed in a written plan that tells how the tax payments, or revenue, will be spent.

Budget Way people decide how to use resources to meet their needs. This is that written plan that tells how the tax payments, or revenue, are spent.

Discussion Questions What kinds of things do we need to pay for in our country? Try to identify things that lots of people will use as a member of the public. Can you think of other things that the government might include in its budget?

Schools 1. Why do we need schools? 2. What would happen if there were no schools?

Hospitals 1. Why do we need hospitals? 2. What would happen if there were no hospitals?

Roads 1. Is there a need to build new roads and fix the old ones? 2. What do you think would happen if the roads were in poor repair?

Nature Conservation 1. How do you think the area we live in would look without trees and grass? 2. What would happen if all the water around us was polluted?

Military 1. Why do we need armed forces? 2. What would happen if there were no armed forces?

Budget Activity You will each be given $1,000 to spend on local community expenses, and you will be working in teams of four to make pie charts and show your spending.

Budget Activity How many schools, hospitals, highways, parks and military bases are in your community? Are any of these more important to your community than others? Are there other things that your community uses that should be included in your budget?