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Budgeting: Big Bucks!

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Lesson Plan

Budgeting: Big Bucks!

Students will be able to define budgeting, explain its importance, and identify key components of a personal budget.

Understanding how to manage money is a critical life skill. This lesson empowers students to make informed financial decisions, helping them achieve their goals and avoid future financial stress.

Audience

7th Grade Students

Time

30 minutes

Approach

Interactive discussion and a practical worksheet activity.

Materials

Teaching Slide Deck: Budgeting 101, Student Budgeting Worksheet, Student Warm Up: Money Matters, and Student Cool Down: Budget Blitz

Prep

Teacher Preparation

15 minutes

Step 1

Warm-Up: Money Matters

5 minutes

Distribute the Warm Up: Money Matters. Have students individually reflect on their current understanding and feelings about money. Briefly discuss some responses as a class. (See Script: Budgeting Basics for detailed instructions).

Step 2

Introduction to Budgeting

5 minutes

Begin by asking students what they think a budget is. Use the Slide Deck: Budgeting 101 to introduce the concept of budgeting, defining it as a plan for how to spend and save money. Highlight why budgeting is important for achieving financial goals. (See Script: Budgeting Basics for detailed instructions).

Step 3

Key Components of a Budget

10 minutes

Using the Slide Deck: Budgeting 101, explain income, expenses (fixed vs. variable), and savings. Provide simple, relatable examples for each. Encourage students to share examples of their own (if comfortable). (See Script: Budgeting Basics for detailed instructions).

Step 4

Budgeting Worksheet Activity

5 minutes

Distribute the Budgeting Worksheet. Guide students through the first few questions, helping them identify potential income and expenses. Explain that they will complete the rest independently or for homework. (See Script: Budgeting Basics for detailed instructions).

Step 5

Cool Down: Budget Blitz

5 minutes

Distribute the Cool Down: Budget Blitz for students to complete as an exit ticket. This will help assess their initial understanding of budgeting concepts. (See Script: Budgeting Basics for detailed instructions).

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Slide Deck

Budgeting: Big Bucks!

Your Money, Your Plan!

Ever wonder where your money goes? Or how to get the things you really want?

Today, we're going to learn about budgeting – your superpower for managing money!

Welcome students and introduce the exciting topic of financial literacy. Ask them to think about what 'money management' means to them.

What's a Budget Anyway?

It's a PLAN for your MONEY!

  • Budgeting means making a plan for how you will spend and save your money.
  • It helps you understand where your money comes from and where it goes.
  • Why is this important? To reach your goals!

Ask students what they think a 'budget' is. Gather a few ideas before revealing the definition. Connect it to personal goals like buying a new game or saving for a trip.

Income vs. Expenses

Income: Money you GET

  • Allowance
  • Gifts
  • Earning money from chores or a job

Expenses: Money you SPEND

  • Snacks and drinks
  • Entertainment (movies, games)
  • Clothes
  • Saving up for something big!

Explain 'income' simply as money coming in. Ask for examples like allowance, gifts, or odd jobs. Then, introduce 'expenses' as money going out, giving examples like snacks, entertainment, or school supplies.

Fixed vs. Variable Expenses

Fixed Expenses: Stay the SAME

  • Example: A monthly subscription for a game you play.

Variable Expenses: CHANGE month-to-month

  • Example: How much you spend on snacks at the store this week.
  • Example: Buying a new book or a movie ticket.

Distinguish between fixed and variable expenses with clear examples. Fixed are regular and predictable (e.g., streaming service subscription, if applicable). Variable changes month-to-month (e.g., going out with friends, new video game).

Don't Forget to SAVE!

Saving is super important!

  • Savings is money you set aside for future goals.
  • It's like paying your future self!
  • Short-term goals: A new video game, a concert ticket.
  • Long-term goals: College, a car, your own place someday.

Introduce savings as a crucial part of budgeting. Emphasize that saving is paying yourself first for future goals. Discuss short-term (new game) and long-term (college, car) goals.

How to Build Your Budget

  1. Figure out your Income: How much money do you get?
  2. List your Expenses: Where does your money go?
  3. Track your Spending: Keep an eye on what you buy.
  4. Adjust and Achieve: Make changes to reach your goals!

Explain the basic steps of creating a budget. Keep it simple and actionable. This slide leads into the worksheet activity.

Your Turn: Budgeting Practice!

Let's put your new budgeting skills to the test!

We'll start our Budgeting Worksheet now. This will help you see how income, expenses, and savings all work together in a real-life budget.

Introduce the worksheet and explain that it's a chance to apply what they've learned. Guide them through the first few items.

You're a Budget Boss!

What did we learn today?

  • Budgeting is planning your money.
  • Income is money you get; expenses are money you spend.
  • Saving helps you reach your goals.

Keep practicing, and you'll be a budgeting pro in no time!

Summarize the main points and encourage students to keep practicing budgeting. Emphasize that it's a skill that improves with practice.

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