Budgeting Basics: Building Financial Literacy

Paul Tentindo

Tier 1

Lesson Plan

Budgeting Basics: Building Financial Literacy

Learn fundamentals of budgeting

In this lesson, students will explore the fundamentals of budgeting by creating a simple budget based on a hypothetical part-time job. This lesson emphasizes financial literacy and decision-making skills, which are crucial for students as they prepare for financial independence. By understanding how to manage money effectively, students will be better equipped to make informed financial decisions in the future.

Audience

9th-12th Grade Students

Time

1 hour

Approach

Learn fundamentals of budgeting

Materials

Worksheet: Budgeting Exercise, Discussion Questions, Pens and Paper, and Calculator

Step 1

Introduction to Budgeting

10 mins

Begin with a brief discussion on what budgeting is and why it's important.
Ask students to share any experiences they have with budgeting or managing money.
Explain the objectives of the lesson: understanding income, expenses, and savings.

Step 2

Budgeting Exercise

30 mins

Distribute the 'Budgeting Exercise' worksheet.
Explain the scenario: Students have a part-time job earning $200 a week.
Guide students to list potential expenses (e.g., transportation, food, entertainment).
Have students allocate their income to different categories, ensuring they save a portion.
Encourage students to think about needs vs. wants.

Step 3

Group Discussion

15 mins

Use the discussion questions to facilitate a conversation about the budgeting exercise.
Discuss challenges faced during the exercise and how they were overcome.
Explore the importance of saving and how unexpected expenses can impact a budget.

Step 4

Closure

5 mins

Recap the key points of the lesson.
Ask students to reflect on what they learned and how they might apply it to their own lives.
Encourage students to start thinking about their own budgets and financial goals.

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Worksheet

Budgeting Exercise Worksheet

This worksheet guides students through creating a simple budget based on a hypothetical part-time job scenario.

List your weekly income from the part-time job.

Identify and list potential weekly expenses.

Allocate your income to cover these expenses, ensuring you save a portion.

Reflect on the budgeting process: What was challenging? What did you learn?

Discussion

Budgeting Discussion Questions

These questions are designed to facilitate a discussion on the budgeting exercise and its implications.

What was the most challenging part of creating your budget?

Encourage students to think about balancing needs and wants.

How did you decide how much to save?

Discuss the importance of saving and strategies for setting aside money.

What would you do if you had an unexpected expense?

Explore the concept of emergency funds and financial planning.