Budgeting Basics for Future Success

Anna Urias

Tier 1

Lesson Plan

Budgeting Basics for Future Success

Understand budgeting and financial planning

In this lesson, students will learn the essentials of budgeting and financial planning for life after high school. This practical lesson will cover managing expenses, saving, and understanding credit, providing students with the tools they need to make informed financial decisions. This lesson is crucial as it equips students with the knowledge to handle real-world financial situations, promoting independence and financial literacy.

Audience

6th-12th Grade with IEPs

Time

1 hour

Approach

Understand budgeting and financial planning

Materials

Whiteboard and markers, Budgeting Worksheet, Discussion Questions, and Sample Budget Scenarios

Step 1

Introduction

10 mins

Begin with a brief discussion on what students know about budgeting and financial planning.
Explain the importance of budgeting in everyday life and post-graduation.
Introduce the objectives of the lesson.

Step 2

Budgeting Basics

15 mins

Present the key components of a budget: income, expenses, savings, and credit.
Use the whiteboard to illustrate a simple budget example.
Discuss the difference between needs and wants.

Step 3

Activity: Creating a Budget

20 mins

Distribute the 'Budgeting Worksheet' to each student.
Provide sample budget scenarios for students to work on.
Guide students through creating a budget based on their scenario.
Encourage students to think about how they would adjust their budget if their income or expenses changed.

Step 4

Discussion

10 mins

Use the 'Discussion Questions' to facilitate a conversation about the challenges and strategies in budgeting.
Encourage students to share their thoughts and any personal experiences with managing money.

Step 5

Closure

5 mins

Recap the key points of the lesson.
Ask students to reflect on what they learned and how they can apply it to their future.
Provide a brief overview of the next steps in financial planning.

Worksheet

Budgeting Worksheet

This worksheet helps students practice creating a budget based on given scenarios. It includes sections for income, expenses, savings, and credit.

List your total monthly income based on the scenario.

Consider all sources of income.

Identify and list your monthly expenses.

Include both fixed and variable expenses.

Calculate your total savings for the month.

Subtract your total expenses from your total income.

Reflect on how you would adjust your budget if your income decreased by 10%.

Consider which expenses are flexible.

Discussion

Budgeting Discussion

This discussion will help students explore the challenges and strategies involved in budgeting and financial planning.

What are some challenges you might face when creating a budget?

Encourage students to think about unexpected expenses and fluctuating income.

How can you differentiate between needs and wants in your budget?

Discuss the importance of prioritizing essential expenses.

What strategies can help you stick to a budget?

Explore ideas like setting financial goals and tracking spending.