Make it to payday.
You finish the month with money left over. Can you still run short before your next paycheck? Test three versions of the same fictional budget.
1. Learn the difference
Income is money received during a period. Expenses are money spent. Cash flow includes when money arrives and leaves. A running balance is the amount available after each event. A buffer is existing money available to absorb a shortfall.
New balance = previous balance + money in − money out.
Example: start with $80, receive $120, then pay $150. Your balances are $80 → $200 → $50. A later $70 bill would leave a $20 shortfall. A negative worksheet balance signals a payment you cannot fully cover; it does not assume overdraft or credit is available.
2. Meet the monthly budget
Start with $100. Receive $1,400 on day 1 and day 15. Pay $1,000 rent on day 2, $200 for food on day 4 and $600 in other bills on day 20. Assume no other transactions, fees or interest. These simplified figures are fictional, not a recommended household budget.
Before calculating, predict which round will have the lowest balance. Work each round independently; do not carry its ending balance into the next round.
A · The repair
A necessary $450 repair is due on day 8. Its date cannot move. Keep the $600 bill on day 20.
| Day | Event | Money in ($) | Money out ($) | Balance ($) |
|---|---|---|---|---|
| Start | Existing cash | — | — | 100 |
| 1 | Pay | 1,400 | — | |
| 2 | Rent | — | 1,000 | |
| 4 | Food | — | 200 | |
| 8 | Repair | — | 450 | |
| 15 | Pay | 1,400 | — | |
| 20 | Other bills | — | 600 |
Lowest balance and day: ____________________
Extra starting buffer needed to avoid a negative balance: ____________________
Ending balance: ____________________
B · Earlier bills
Reset to the original $100 starting balance. There is no repair. Move the $600 bill from day 20 to day 8.
| Day | Event | Money in ($) | Money out ($) | Balance ($) |
|---|---|---|---|---|
| Start | Existing cash | — | — | 100 |
| 1 | Pay | 1,400 | — | |
| 2 | Rent | — | 1,000 | |
| 4 | Food | — | 200 | |
| 8 | Other bills | — | 600 | |
| 15 | Pay | 1,400 | — |
Lowest balance and day: ____________________
Extra starting buffer needed to avoid a negative balance: ____________________
Ending balance: ____________________
C · A buffer
Repeat round A, but add $200 of money already saved to the starting balance. Begin with $300. This is existing money, not new income.
| Day | Event | Money in ($) | Money out ($) | Balance ($) |
|---|---|---|---|---|
| Start | Existing cash | — | — | 300 |
| 1 | Pay | 1,400 | — | |
| 2 | Rent | — | 1,000 | |
| 4 | Food | — | 200 | |
| 8 | Repair | — | 450 | |
| 15 | Pay | 1,400 | — | |
| 20 | Other bills | — | 600 |
Lowest balance and day: ____________________
Extra starting buffer needed to avoid a negative balance: ____________________
Ending balance: ____________________
3. Defend your decision
- Which round ends with the most money? Does it also avoid a shortfall?
- Recommend one change for round A. Explain how much it helps and what must be true for it to work. Do not move the required repair date.
- Explain why the $200 in round C changes available cash but is not income earned this month.
Exit question: Why does a positive month-end balance not guarantee every bill can be paid on time?
Teach the timing, then the tradeoff.
Objective: Calculate running balances, identify a dated shortfall and explain how an existing buffer differs from income. Prerequisites: addition, subtraction and negative numbers. No real student financial information is needed.
- 5 minutes: model the $80 example and define cash flow.
- 3 minutes: predict and explain individually.
- 10 minutes: calculate in pairs; assign a recorder and a checker. Reset the balance for each round.
- 7 minutes: swap sheets, check calculations and defend a proposed change.
- 5 minutes: discuss the exit question. Allow another 5 minutes for support.
For support, supply a number line or calculate round A together. For extension, ask students to find the smallest starting balance that lets each round stay nonnegative.
| Round | Balances after listed events ($) | Lowest | Extra buffer | Ending |
|---|---|---|---|---|
| A | 1,500 → 500 → 300 → −150 → 1,250 → 650 | −$150, day 8 | $150 | $650 |
| B | 1,500 → 500 → 300 → −300 → 1,100 | −$300, day 8 | $300 | $1,100 |
| C | 1,700 → 700 → 500 → 50 → 1,450 → 850 | $50, day 8 | $0 | $850 |
Explain the surprising result: B has the largest ending balance and the deepest midmonth shortfall. In A, day 8 is $300 − $450 = −$150. Another $150 at the start would bring that low point to zero. C supplies $200 extra, leaving $50 at the low point. Minimum total starting balances are $250 for A and $400 for B.
Acceptable proposals: an additional $150 of available prior savings in A, or an agreed change to another payment before day 8 that frees at least $150. Learners must state that savings must already exist or that a payee must agree; simply delaying a bill is not automatically an available option. Borrowing is not assumed to be free or available.
Quick assessment (6 points): correct balances (2), correct low points and buffers (2), a feasible change with its condition (1), and an exit answer explaining that timing matters even with an ending surplus (1).
Exit answer: money arriving on day 15 cannot pay a bill due on day 8 unless an available buffer or agreed arrangement bridges the gap.
Use this activity
© 2026 World Economy. You may print and share this free activity with your own learners, retaining this attribution and link. No resale or redistribution as a paid product. This activity is a standalone companion to the Everyday Economics workbook in development; no purchase is required.
World Economy · losttofound.org/classroom/make-it-to-payday · Updated September 19, 2026.
Background reading: CFPB’s Your Money, Your Goals toolkit includes cash-flow budgeting resources. This original activity is not CFPB-approved or endorsed and has not yet been independently classroom-tested.