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Budget Breakdown Blast!

Lesson Plan

Budget Breakdown Blast! Lesson Plan

Students will be able to identify the components of a personal budget, including income, planned savings (college, retirement, emergencies), taxes, and fixed and variable expenses, and calculate the percentage each category comprises of the total budget.

Understanding personal budgets is a critical life skill. It empowers students to make informed financial decisions, plan for their future, and manage their money effectively from a young age.

Audience

6th Grade Students

Time

30 minutes

Approach

Interactive discussion, visual aids, and practical application through a worksheet.

Materials

Whiteboard or Projector, Markers or Pens, Budget Breakdown Blast! Slide Deck, Budget Blueprint Worksheet, and Budget Blueprint Answer Key

Prep

Teacher Preparation

10 minutes

Step 1

Introduction: What's a Budget?

5 minutes

  • Begin by asking students if they know what a budget is. (2 minutes)
  • Use the first few slides of the Budget Breakdown Blast! Slide Deck to introduce the concept of a budget and why it's important. (3 minutes)

Step 2

Components of a Budget

10 minutes

  • Guide students through the different components of a personal budget using the Budget Breakdown Blast! Slide Deck:
    • Income: Money earned.
    • Savings: Money set aside for future goals (college, retirement, emergencies).
    • Taxes: Money paid to the government.
    • Fixed Expenses: Regular payments that stay the same (e.g., subscription).
    • Variable Expenses: Payments that change (e.g., snacks, entertainment).
  • Encourage questions and provide simple, relatable examples for each component.

Step 3

Percentage Power!

5 minutes

  • Explain how to calculate what percentage each category comprises of the total budget. (e.g., 'Part / Whole x 100%').
  • Use an example on the Budget Breakdown Blast! Slide Deck to demonstrate the calculation.

Step 4

Budget Blueprint Worksheet

8 minutes

  • Distribute the Budget Blueprint Worksheet.
  • Instruct students to work individually or in pairs to complete the worksheet, applying what they've learned about budget components and percentages.
  • Circulate to provide support and answer questions.

Step 5

Wrap-up and Discussion

2 minutes

  • Briefly review answers as a class using the Budget Blueprint Answer Key.
  • Ask students to share one new thing they learned about budgeting.
  • Emphasize the importance of planning and saving for the future.
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Slide Deck

Budget Breakdown Blast!

Your Money, Your Future!

Ever wonder where money goes? Let's find out how to take control!

Greet students and ask them what they think a 'budget' is. Encourage a few answers to gauge prior knowledge. Transition to explaining why budgeting is important for everyone.

What's a Budget Anyway?

A budget is like a roadmap for your money.

It helps you:

  • Track what you earn
  • Plan what you spend
  • Save for your dreams!

Explain that a budget is a plan for how you earn and spend money. Emphasize that it helps us achieve our goals, like saving for a new game or a big trip.

Income: Money In!

What is Income?

It's all the money you receive!

  • Allowance
  • Birthday money
  • Money earned from odd jobs
  • Part-time work

Introduce income as the money coming IN. Give examples like allowance, gifts, or money earned from chores. Ask students for other examples.

Savings: Plan for Your Future

Pay Yourself First!

Money you set aside for later.

  • College: Future education
  • Retirement: When you stop working (way, way later!)
  • Emergencies: Unexpected needs (broken bike, sick pet)

Always plan to save!

Discuss the importance of saving. Break down different types: long-term goals (college, retirement - even if far off), and short-term (emergencies, unexpected needs). Stress that saving should be 'planned'!

Taxes: Contributing to Community

Helping Our Community

Money paid to the government.

This money helps pay for:

  • Schools
  • Roads
  • Parks
  • Public services

Explain taxes simply: money we pay to the government for public services like schools, roads, and parks. Keep it high-level for 6th graders.

Fixed Expenses: Regular Payments

Predictable Costs

Expenses that usually stay the same each month or year.

  • Subscription services (games, music)
  • Bus pass
  • Monthly club fees

Explain fixed expenses – payments that are the same every time. Give simple examples like a streaming service subscription or a bus pass. Ask for student examples.

Variable Expenses: Changing Costs

Flexible Spending

Expenses that change from month to month.

  • Snacks and treats
  • Entertainment (movies, arcade)
  • New clothes
  • Hobbies (art supplies, comics)

Explain variable expenses – payments that change. Give examples like snacks, going to the movies, or buying new art supplies. Emphasize that these are often areas where people can adjust their spending.

Math Time! Percentages in Your Budget

How much of your money goes where?

To find the percentage, use this formula:

(Part / Whole) x 100% = Percentage

Example: If you earn $20 (Whole) and spend $5 on snacks (Part):

($5 / $20) x 100% = ?

(0.25) x 100% = 25%

Introduce the concept of calculating percentages. Use a simple, relatable example with easy numbers. Walk through the 'Part / Whole x 100%' formula step-by-step.

Your Turn: Budget Blueprint!

Time to build your own budget!

  • You'll get a Budget Blueprint Worksheet.
  • Identify each budget component.
  • Calculate the percentage for each category.
  • Work carefully, and ask questions if you get stuck!

Explain the activity. Remind them to use the formula. Encourage them to ask questions as they work on the worksheet.

Budgeting for a Bright Future!

Great job, future financial wizards!

  • Budgeting helps you understand your money.
  • It helps you reach your goals.
  • It gives you control over your financial future!

Conclude by reiterating the importance of budgeting. Ask for one takeaway from the lesson.

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Worksheet

Budget Blueprint Worksheet

Name: ________________________

Date: _________________________

Part 1: Identify the Budget Components

Read each scenario below. Identify if the money mentioned is Income, Savings, Taxes, Fixed Expense, or Variable Expense.

  1. You receive $15 for helping your neighbor mow their lawn.
    Component: _________________________


  2. You put $5 into a special jar for your college fund.
    Component: _________________________


  3. Your family pays $10 each month for a streaming video service.
    Component: _________________________


  4. You buy a new comic book for $3.50.
    Component: _________________________


  5. Part of your parent's paycheck goes to the government to help pay for roads.
    Component: _________________________


  6. You set aside $2 for a new video game you want to buy next month.
    Component: _________________________


  7. You spend $4.00 on snacks at the convenience store.
    Component: _________________________


Part 2: Percentage Power!

Use the information provided to calculate the percentage each category comprises of the total budget. Remember the formula: (Part / Whole) x 100% = Percentage

Scenario 1: Jamie earns $40 from pet-sitting this week.

  • She puts $10 into her savings.
  • She spends $8 on a new book.
  • She buys a snack for $2.

Total Income (Whole): $40

  1. What percentage of her income did Jamie save?
    Calculation:



    Percentage: _________________________


  2. What percentage of her income did Jamie spend on the new book (variable expense)?
    Calculation:



    Percentage: _________________________


  3. What percentage of her income did Jamie spend on snacks (variable expense)?
    Calculation:



    Percentage: _________________________


Scenario 2: Alex has a total monthly budget of $100 from his allowance and chores.

  • He saves $20 for a new bike.
  • His fixed expense for a game subscription is $10.
  • He spends $15 on movie tickets with friends.

Total Budget (Whole): $100

  1. What percentage of his budget did Alex save?
    Calculation:



    Percentage: _________________________


  2. What percentage of his budget is his fixed expense for the game subscription?
    Calculation:



    Percentage: _________________________


  3. What percentage of his budget did Alex spend on movie tickets (variable expense)?
    Calculation:



    Percentage: _________________________


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Answer Key

Budget Blueprint Answer Key

Part 1: Identify the Budget Components

  1. You receive $15 for helping your neighbor mow their lawn.
    Component: Income
    Thought Process: Receiving money for work is considered income.

  2. You put $5 into a special jar for your college fund.
    Component: Savings
    Thought Process: Setting aside money for a future goal like college is savings.

  3. Your family pays $10 each month for a streaming video service.
    Component: Fixed Expense
    Thought Process: A monthly payment that stays the same (like a subscription) is a fixed expense.

  4. You buy a new comic book for $3.50.
    Component: Variable Expense
    Thought Process: Buying something that changes in amount or frequency each month (like a comic book) is a variable expense.

  5. Part of your parent's paycheck goes to the government to help pay for roads.
    Component: Taxes
    Thought Process: Money paid to the government for public services is taxes.

  6. You set aside $2 for a new video game you want to buy next month.
    Component: Savings
    Thought Process: Setting aside money for a planned future purchase is savings.

  7. You spend $4.00 on snacks at the convenience store.
    Component: Variable Expense
    Thought Process: Spending on items like snacks that can change week to week is a variable expense.

Part 2: Percentage Power!

Scenario 1: Jamie earns $40 from pet-sitting this week.

  • She puts $10 into her savings.
  • She spends $8 on a new book.
  • She buys a snack for $2.

Total Income (Whole): $40

  1. What percentage of her income did Jamie save?
    Calculation: ($10 / $40) x 100% = 0.25 x 100% = 25%
    Thought Process: Savings ($10) is the part, total income ($40) is the whole. Divide part by whole, then multiply by 100 to get the percentage.

  2. What percentage of her income did Jamie spend on the new book (variable expense)?
    Calculation: ($8 / $40) x 100% = 0.20 x 100% = 20%
    Thought Process: Book cost ($8) is the part, total income ($40) is the whole. Divide part by whole, then multiply by 100.

  3. What percentage of her income did Jamie spend on snacks (variable expense)?
    Calculation: ($2 / $40) x 100% = 0.05 x 100% = 5%
    Thought Process: Snack cost ($2) is the part, total income ($40) is the whole. Divide part by whole, then multiply by 100.

Scenario 2: Alex has a total monthly budget of $100 from his allowance and chores.

  • He saves $20 for a new bike.
  • His fixed expense for a game subscription is $10.
  • He spends $15 on movie tickets with friends.

Total Budget (Whole): $100

  1. What percentage of his budget did Alex save?
    Calculation: ($20 / $100) x 100% = 0.20 x 100% = 20%
    Thought Process: Savings ($20) is the part, total budget ($100) is the whole. Divide part by whole, then multiply by 100.

  2. What percentage of his budget is his fixed expense for the game subscription?
    Calculation: ($10 / $100) x 100% = 0.10 x 100% = 10%
    Thought Process: Fixed expense ($10) is the part, total budget ($100) is the whole. Divide part by whole, then multiply by 100.

  3. What percentage of his budget did Alex spend on movie tickets (variable expense)?
    Calculation: ($15 / $100) x 100% = 0.15 x 100% = 15%
    Thought Process: Movie tickets ($15) is the part, total budget ($100) is the whole. Divide part by whole, then multiply by 100.

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