Lesson Plan
Budgeting Basics Bootcamp Lesson Plan
Students will be able to create a simple budget based on a hypothetical scenario, distinguishing between needs and wants and allocating funds appropriately.
Understanding how to manage money is a crucial life skill. This lesson will equip students with foundational budgeting knowledge, helping them make informed financial decisions in the future and manage their resources effectively.
Audience
6th Grade Group
Time
45 minutes
Approach
Hands-on group activity and scenario-based budgeting.
Prep
Teacher Preparation
15 minutes
- Review the Budgeting Basics Bootcamp Lesson Plan and all linked materials: the Budgeting Scenarios Intro Slide Deck, the Budget Builder Card Game, and the Scenario Budget Template Worksheet.
- Print and cut out the cards for the Budget Builder Card Game.
- Make enough copies of the Scenario Budget Template Worksheet for each group.
- Prepare hypothetical budget scenarios (can be written on a whiteboard or printed out).
Step 1
Warm-Up: Needs vs. Wants (5 minutes)
5 minutes
- Begin by displaying the "Needs vs. Wants" slide from the Budgeting Scenarios Intro Slide Deck.
- Ask students to quickly brainstorm examples of needs and wants. Discuss a few examples as a class.
Step 2
Introduction to Budgeting (10 minutes)
10 minutes
- Use the Budgeting Scenarios Intro Slide Deck to explain what a budget is and why it's important.
- Introduce the idea of income and expenses.
- Explain the concept of hypothetical budget scenarios that the groups will work with.
Step 3
Group Budgeting Challenge Setup (5 minutes)
5 minutes
- Divide students into small groups (3-4 students per group).
- Distribute one Scenario Budget Template Worksheet and a set of Budget Builder Card Game cards to each group.
- Explain the goal: each group will create a budget for their assigned hypothetical scenario using the cards and worksheet.
Step 4
Budget Builder Card Game (15 minutes)
15 minutes
- Each group receives a scenario card, income cards, and various expense/want cards from the Budget Builder Card Game.
- Students will work together to decide which expenses and wants to include in their budget, aiming to stay within their income for the given scenario.
- They will record their decisions on the Scenario Budget Template Worksheet.
- Circulate among groups to offer assistance and answer questions.
Step 5
Group Share & Discussion (8 minutes)
8 minutes
- Have each group briefly share their budget and discuss some of the choices they made.
- Facilitate a class discussion on the challenges they faced, compromises they had to make, and what they learned about budgeting.
- Use discussion prompts like: "What was the hardest decision your group had to make?" or "Did anything surprise you about budgeting?"
Step 6
Cool-Down: Budgeting Takeaway (2 minutes)
2 minutes
- Ask students to reflect on one key takeaway about budgeting from the activity.
- Conclude by reiterating the importance of financial planning.
Slide Deck
Budgeting Basics Bootcamp
Welcome to your financial adventure! Today, we're becoming money masters. Have you ever wondered how grown-ups decide how to spend their money? That's what budgeting is all about!
Greet students and start with an engaging question about money. Transition into what a budget is.
Needs vs. Wants
Needs: Things you MUST have to live or be healthy.
- Food
- Shelter (a home)
- Clothing
- Water
Wants: Things you would LIKE to have, but don't need to survive. - Toys
- Video Games
- Eating out
- New clothes (when old ones are fine)
Introduce the concept of Needs vs. Wants. Ask students for examples for each category before revealing the bullet points.
What is a Budget?
A budget is like a plan for your money! It helps you decide how to spend and save the money you have.
Why do we budget?
- To make sure we can pay for our needs.
- To save up for our wants.
- To avoid running out of money.
Explain what a budget is in simple terms. Emphasize that it's a plan for your money.
Income: Money In!
Income is the money you receive or earn.
Where does income come from?
- Jobs (salaries, wages)
- Allowances
- Gifts
- Selling things you make
Define income and provide simple examples. Ask students for ways people earn income.
Expenses: Money Out!
Expenses are the things you spend your money on.
Expenses can be:
- Fixed: The same amount each month (e.g., rent, subscriptions)
- Variable: Amounts that change (e.g., groceries, entertainment)
Expenses cover both your needs and your wants!
Define expenses and give examples. Explain that expenses can be needs or wants.
Your Mission: Create a Budget!
Today, you'll be working in groups to create a budget for a make-believe person or family.
Each group will get:
- A scenario (who you are, what your income is).
- Expense cards (things to pay for).
- A worksheet to build your budget.
Your goal: Make sure your expenses don't go over your income!
Introduce the idea of a hypothetical scenario. This sets up the group activity. Explain they will get a specific situation.
Game
Budget Builder Card Game
Instructions
- Each group will receive one "Scenario" card, several "Income" cards, and a mix of "Expense" and "Want" cards.
- Read your "Scenario" card carefully to understand your situation.
- Calculate your total monthly income from your "Income" cards.
- Work together to choose which "Expense" and "Want" cards you will include in your budget. Remember, you must pay for all your needs first!
- Record your choices and amounts on your Scenario Budget Template Worksheet.
- Your total expenses and wants should not exceed your total income.
Cards to Print and Cut Out
Scenario Cards (Choose one per group)
---START OF SCENARIO CARD 1---
Scenario: The Young Entrepreneur
You are a 6th grader who loves making friendship bracelets and selling them online. You also help your neighbor with yard work once a month. You want to save up for a new video game console.
Monthly Income: (See Income Cards)
---END OF SCENARIO CARD 1---
---START OF SCENARIO CARD 2---
Scenario: The Aspiring Chef
You are a 6th grader who helps out at your family's small bakery on weekends. You also get an allowance for chores. You want to save money to buy special ingredients to try new recipes.
Monthly Income: (See Income Cards)
---END OF SCENARIO CARD 2---
Income Cards (Distribute a mix to each group based on their scenario - e.g., one or two per group)
---START OF INCOME CARD A---
Income Source: Bracelet Sales
Amount: $50
---END OF INCOME CARD A---
---START OF INCOME CARD B---
Income Source: Yard Work
Amount: $25
---END OF INCOME CARD B---
---START OF INCOME CARD C---
Income Source: Bakery Help
Amount: $40
---END OF INCOME CARD C---
---START OF INCOME CARD D---
Income Source: Allowance
Amount: $30
---END OF INCOME CARD D---
---START OF INCOME CARD E---
Income Source: Birthday Money
Amount: $75 (One-time, can be added to monthly budget if desired)
---END OF INCOME CARD E---
Expense & Want Cards (Provide a diverse set to each group)
---START OF EXPENSE/WANT CARD 1---
Item: School Supplies (Need)
Cost: $10
---END OF EXPENSE/WANT CARD 1---
---START OF EXPENSE/WANT CARD 2---
Item: Snacks (Want/Small Need)
Cost: $15
---END OF EXPENSE/WANT CARD 2---
---START OF EXPENSE/WANT CARD 3---
Item: Donation to Charity (Want)
Cost: $5
---END OF EXPENSE/WANT CARD 3---
---START OF EXPENSE/WANT CARD 4---
Item: Savings for Video Game (Want)
Cost: $30
---END OF EXPENSE/WANT CARD 4---
---START OF EXPENSE/WANT CARD 5---
Item: Savings for Special Ingredients (Want)
Cost: $20
---END OF EXPENSE/WANT CARD 5---
---START OF EXPENSE/WANT CARD 6---
Item: Movie Ticket (Want)
Cost: $12
---END OF EXPENSE/WANT CARD 6---
---START OF EXPENSE/WANT CARD 7---
Item: New Book (Want/Enrichment)
Cost: $8
---END OF EXPENSE/WANT CARD 7---
---START OF EXPENSE/WANT CARD 8---
Item: Bus Fare for School (Need)
Cost: $20
---END OF EXPENSE/WANT CARD 8---
---START OF EXPENSE/WANT CARD 9---
Item: Birthday Gift for Friend (Want/Social Need)
Cost: $15
---END OF EXPENSE/WANT CARD 9---
---START OF EXPENSE/WANT CARD 10---
Item: Art Supplies (Want)
Cost: $18
---END OF EXPENSE/WANT CARD 10---
---START OF EXPENSE/WANT CARD 11---
Item: Music Streaming Subscription (Want)
Cost: $10
---END OF EXPENSE/WANT CARD 11---
---START OF EXPENSE/WANT CARD 12---
Item: Lunch Money (Need)
Cost: $40
---END OF EXPENSE/WANT CARD 12---
---START OF EXPENSE/WANT CARD 13---
Item: New Backpack (Need, if old one is broken)
Cost: $25
---END OF EXPENSE/WANT CARD 13---
Worksheet
Scenario Budget Template Worksheet
Group Name:
Our Scenario: (Describe your scenario here)
Section 1: Income (Money In)
List all your income sources and their amounts.
| Income Source | Amount |
|---|---|
| Total Monthly Income |
Section 2: Expenses & Wants (Money Out)
List all the items you need to pay for or want to buy. Remember to prioritize needs!
| Item | Need/Want? | Amount |
|---|---|---|
| Total Monthly Expenses & Wants |
Section 3: Budget Check
Does your money in (income) cover your money out (expenses & wants)?
Total Monthly Income:
Total Monthly Expenses & Wants:
Remaining Money (Income - Expenses):
-
Is your remaining money positive, negative, or zero?
-
If it's negative, what items would you cut or reduce from your "Wants" to make it work?
-
What was the most challenging decision your group made when creating this budget?