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Budgeting Basics

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Jennifer Levasseur

Tier 1

Lesson Plan

Budgeting Basics

Learn fundamentals of creating a budget

In this lesson, students will learn the essentials of budgeting, including how to track income and expenses. They will apply these skills by creating a budget for a hypothetical scenario. This lesson is important for helping students develop financial literacy, which is a critical skill for managing personal finances effectively.

Audience

High School Students

Time

45 mins

Approach

Learn fundamentals of creating a budget

Materials

Whiteboard and markers, Budget Worksheet, Income and Expenses Discussion, Hypothetical Scenario Cards, and Exit Ticket

Step 1

Introduction to Budgeting

5 mins

  • Briefly explain the concept of budgeting.
  • Highlight the importance of keeping track of income and expenses.
  • Explain the objective of the lesson.

Step 2

Discussion: Tracking Income and Expenses

10 mins

  • Use the discussion guide provided to facilitate a conversation on tracking income and expenses.
  • Encourage students to share their thoughts on why it is important to track both.

Step 3

Activity: Create a Budget

20 mins

  • Hand out the Budget Worksheet and Hypothetical Scenario Cards.
  • Explain the instructions on how to create a budget using the provided scenario.
  • Students work individually or in pairs to complete the worksheet.
  • Walk around the room to assist students and answer questions.

Step 4

Review and Discussion

5 mins

  • Review the completed budgets as a class.
  • Discuss any challenges students faced and strategies to overcome them.
  • Highlight key takeaways from the activity.

Step 5

Closure

5 mins

  • Hand out Exit Tickets for students to complete.
  • Collect Exit Tickets and provide feedback if time permits.
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Worksheet

Budget Worksheet

This worksheet will help students practice creating a budget using a hypothetical scenario. They will list their income and expenses and ensure their budget balances.

List your total income for the month.

Include base salary, any part-time jobs, or allowances.







List your total expenses for the month.

Include rent, utilities, groceries, transportation, and entertainment.







Ensure that your total expenses do not exceed your total income. If they do, adjust your expenses accordingly.

Prioritize necessary expenses and consider reducing discretionary spending.







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Discussion

Income and Expenses Discussion

This guided discussion will help students understand the importance of tracking income and expenses as part of budgeting.

Why is it important to track both income and expenses?

Discuss how tracking both helps maintain a balanced budget and avoid overspending.







What are some common sources of income for high school students?

Answers may include part-time jobs, allowances, or gifts.







What are some common expenses for high school students?

Answers may include school supplies, clothing, entertainment, and transportation.







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Quiz

Exit Ticket

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