7.3 – Think and Apply Activity 1
Federal Budget Activity – how does the government spend our tax money?
Where does the federal government get its budget money from?
What are federal income taxes? What is the last day (each year) when you can submit federal income tax forms?
What does the word “budget” mean? Who keeps budgets?
1. The chart below shows federal budget categories in which the U.S. government spends the people’s money. Review the categories and rank them in order of where you think the most money is spent (#1), down to the one you think the least money is spent (#8). Share your guesses as a class.
| Education | Health Insurance | Social Security |
Law enforcement |
|---|---|---|---|
|
Transportation |
Economic security programs/welfare | Natural resources/ agriculture (farms) | Defense (military) |
- _________________________________ (Government spends the most on this)
- _________________________________
- _________________________________
- _________________________________
- _________________________________
- _________________________________
- _________________________________
- _________________________________ (Government spends the least on this)
2. Now, look over this pie chart as a class to find out the answers. Discuss:
- What’s the title?
- What’s the source of the information?
- What percentages of the budget did the government spend on different categories in this year?
- Are you surprised by any of the numbers?
- Which budget categories on the pie chart didn’t get included in the rankings?
- Which of these categories do you think helps the most people, and why?

3. Do a “quick write” (5-10 min) in your notebook about where the government SHOULD spend the people’s money. Share your answers with the class when finished. This will help you get started:
In my opinion, the U.S. government SHOULD spend its money on __________________________________. This area needs the money because ______________________________________________________.