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.
Learn fundamentals of budgeting
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.
- 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.
