Budgeting Warm-Up: Your Money Story

Think about a time you really wanted something, but didn't have enough money for it. What was it? How did that make you feel?

If you could have unlimited money for one day, what would you do?

What's one thing you already know about managing money?

Budgeting Script: Your Money, Your Power!

Warm-Up: What's Your Money Mindset? (5 minutes)

• Teacher: "Good morning/afternoon everyone! Today we're diving into a super important life skill: budgeting. Before we jump in, let's get our brains thinking about money. Take a moment to silently read and reflect on the questions in your Budgeting Warm-Up handout. We'll share some thoughts in about 2-3 minutes."
• (Allow students time to write. Circulate the room to encourage participation.)
• Teacher: "Alright, who'd like to share a thought? Perhaps a time you really wanted something but didn't have the money for it?" (Call on a few students. Validate their feelings and experiences.)
• Teacher: "Interesting! What about the idea of unlimited money for a day? What would you do?" (Listen to a few fun responses.)
• Teacher: "Great. And finally, what's one thing you already know about managing money, big or small?" (Acknowledge their existing knowledge.)

Introduction to Budgeting: The Basics (10 minutes)

• Teacher: "Fantastic insights! Let's get to the core of it. We're talking about becoming a 'Budget Boss' today. What exactly is budgeting? Take a look at our first slide on the Budgeting 101 Slide Deck."
• (Display Slide 2: What is Budgeting?)
• Teacher: "As you can see, budgeting is essentially a plan for your money. It's about consciously deciding where your money goes rather than wondering where it went. It's about control, not just restriction. Think of it as a financial roadmap."
• Teacher: "Now, to make a plan, we need to know two main things: what money is coming in and what money is going out. We call these 'income' and 'expenses'."
• (Display Slide 3: Income vs. Expenses)
• Teacher: "Income is simply the money you receive. For high school students, what are some common sources of income?" (Guide students to mention allowance, part-time jobs, gifts, babysitting, etc. Write them on the board if possible.)
• Teacher: "Exactly. And expenses are the money you spend. What are some things you spend money on?" (Guide students to mention food, entertainment, clothes, phone, savings (as a planned expense!), etc. Write them on the board.)
• Teacher: "So, our goal with budgeting is to make sure our income covers our expenses, with hopefully some left over for savings or goals."

Needs vs. Wants: Where Does Your Money Go? (15 minutes)

• Teacher: "This next concept is crucial for smart budgeting. When we look at our expenses, we need to categorize them. On the Budgeting 101 Slide Deck, we have 'Needs vs. Wants'."
• (Display Slide 4: Needs vs. Wants)
• Teacher: "A need is something essential for your survival and basic well-being. Things you absolutely must have. What comes to mind?" (Wait for responses like food, shelter, basic clothes, transportation to school/work.)
• Teacher: "Right. Now, a want is something you desire, but isn't essential. It's nice to have, but you could live without it. What are some common wants for people your age?" (Encourage examples like new video games, concert tickets, designer clothes, daily lattes, latest phone model.)
• Teacher: "Sometimes the line can be a little blurry, can't it? For example, food is a need, but eating out at a fancy restaurant every night is a want. Transportation is a need, but having the newest sports car is a want. The key is to be honest with ourselves."
• Teacher: "Let's do a quick activity. I'm going to say an item, and I want you to tell me if you think it's a Need or a Want. Be ready to explain your reasoning!"
  • Teacher: "A pair of shoes." (Need, for protection and hygiene)
  • Teacher: "New Air Jordans." (Want, specific brand/style)
  • Teacher: "A smartphone." (Could be both - communication is a need, but the latest model with all the bells and whistles is a want.)
  • Teacher: "School supplies." (Need)
  • Teacher: "Concert tickets." (Want)
  • Teacher: "Money for savings." (This is a planned expense, often a 'want' that becomes a 'need' for future goals. Discuss this nuance.)

Build Your Budget: A Hands-On Approach (15-20 minutes)

• Teacher: "You're doing great distinguishing between needs and wants! Now let's apply this knowledge. We're going to start building our own basic budgets using the My First Budget Worksheet."
• (Distribute the worksheet now if not already done.)
• (Display Slide 6: Creating Your Budget)
• Teacher: "Look at the steps on the slide and on your worksheet. First, estimate your monthly income. This might be your allowance, earnings from a job, or even money you expect from gifts. Don't worry about being perfect, just give it your best guess."
• (Allow time for students to fill in income.)
• Teacher: "Next, think about your expenses. Use the 'Needs vs. Wants' categories we just discussed. List out everything you typically spend money on in a month. Be honest with yourselves! Include things like snacks, entertainment, phone credit, savings goals – treat savings like an expense you pay yourself first."
• (Circulate, answer questions, provide examples if students are stuck. Encourage them to think about both fixed expenses (same every month, like a phone bill) and variable expenses (changes month to month, like going to the movies).)
• Teacher: "Once you've listed your expenses, total them up. Now, compare your total income to your total expenses. What do you notice? Is your income higher than your expenses? Or are your expenses higher?"
• Teacher: "If your expenses are higher, don't worry! That's exactly why we budget. Look at your 'wants' column. Where could you potentially cut back or make different choices? If your income is higher, fantastic! Where could you allocate that extra money? More savings? A specific goal?"
• (Guide students to make adjustments and understand the concept of balancing their budget.)
• (Display Slide 7: Budget Boss Tips for Success!)
• Teacher: "As you work, keep these tips in mind. Budgeting is a journey, not a destination. It needs to be realistic, flexible, and something you check regularly."

Cool-Down: Budgeting Wisdom (5 minutes)

• Teacher: "Alright, Budget Bosses! Let's bring it all together. To wrap up, please complete the Budgeting Cool-Down sheet. This will help you reflect on what you've learned and what you'll take away from today's lesson."
• (Collect worksheets if desired, or have students keep them for future reference.)
• Teacher: (Display Slide 8: Your Money, Your Power!) "Remember this quote: 'A budget is telling your money where to go instead of wondering where it went.' You now have the power to direct your money and build the financial future you want. Great job today!"

My First Budget Worksheet: Be a Money Master!

Part 1: Your Income (Money Coming In)

Think about all the money you expect to receive this month. This could be from an allowance, a part-time job, gifts, or any other source.

Part 2: Your Expenses (Money Going Out)

Now, let's list where your money goes. Try to list everything you spend money on in a typical month. Remember to categorize them as "Needs" (essential) or "Wants" (desired).

Part 3: Balancing Your Budget (Making It Work!)

Now, let's compare your income and expenses.

Total Monthly Income:

Total Monthly Expenses:

Is your Income > Expenses? (You have money left over!)

• What will you do with the extra money? (e.g., save for a goal, invest, treat yourself responsibly)
  
  
  
  
  
  

Is your Expenses > Income? (You\'re spending more than you earn!)

• Look at your "Wants" list in Part 2. Which expenses could you reduce or eliminate to balance your budget? Be specific!
  
  
  
  
  
  

My Budgeting Goal:

What's one small change you can make this month to be a better "Budget Boss"?

Budgeting Cool-Down: My Financial Check-Out

Reflect & Share

1. What is the most important thing you learned about budgeting today?
   
   
   
   
   
   

2. Before this lesson, what was one misconception you had about money or budgeting?
   
   
   
   
   
   

3. Name one "need" and one "want" that you regularly spend money on. How can identifying these help you with your budget?

   • Need:
     
   • Want:
     
   • How it helps:
     
     
     
     
     

4. What is one specific action you will take to be more of a "Budget Boss" in your own life, starting this week?