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Budgeting for Future You

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Lesson Plan

Your First Budget Lesson Plan

Students will be able to identify key components of a budget, differentiate between income and expenses, and apply practical budgeting strategies to manage their finances.

Financial literacy is a critical life skill. Learning to budget now will empower students to make informed financial decisions, achieve financial independence, and avoid common pitfalls in early adulthood, setting them up for long-term stability and success.

Audience

12th Grade Students

Time

90 minutes

Approach

Interactive presentation, guided worksheet, engaging game, and a concluding quiz.

Materials

Whiteboard or projector, Markers or pens, Money Moves 101 Presentation, Real-Life Budget Builder, Financial Survival Game, and Budgeting Basics Check

Prep

Teacher Preparation

30 minutes

Step 1

Introduction & Warm-Up: What's Your Money Story?

10 minutes

  • Begin with a brief discussion: "What does 'budgeting' mean to you?" or "When you hear 'money management,' what comes to mind?"
    - Introduce the lesson's importance: "Today, we're going to unlock the secrets to managing your money, so you can build a financially strong future for yourself!"
    - Briefly introduce the day's activities.

Step 2

Direct Instruction: Money Moves 101

30 minutes

  • Present the Money Moves 101 Presentation.
    - Go through each slide, explaining concepts like income, fixed expenses, variable expenses, savings, and debt.
    - Encourage questions and interactive discussion throughout the presentation.
    - Use real-world examples relevant to 12th graders (e.g., part-time job income, car insurance, college expenses, entertainment).

Step 3

Guided Practice: Real-Life Budget Builder

20 minutes

  • Distribute the Real-Life Budget Builder worksheet.
    - Guide students through the worksheet, filling it out together or in small groups.
    - Provide scenarios for income and expenses relevant to young adults.
    - Circulate around the room to offer support and answer questions.

Step 4

Engage & Apply: Financial Survival Game

20 minutes

  • Introduce the Financial Survival Game.
    - Explain the rules and objectives of the game.
    - Facilitate the game, encouraging students to apply their budgeting knowledge.
    - Debrief the game: "What strategies worked well? What challenges did you face?"

Step 5

Assessment & Wrap-Up: Budgeting Basics Check & Reflection

10 minutes

  • Administer the Budgeting Basics Check quiz.
    - Collect quizzes.
    - End with a quick reflection question: "What's one new thing you learned about budgeting today that you'll try to apply in your own life?" or "Why is budgeting important for 'Future You'?"
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Slide Deck

Money Moves 101: Budgeting for Future You

Welcome to your financial future! Today we're learning how to take control of your money.

Why Budgeting Matters:

  • Freedom
  • Goals
  • Less Stress
  • Future You will thank you!

Welcome students and introduce the topic of budgeting. Emphasize its relevance to their future.

What's Your Income?

Income: The Money You Make

  • Definition: Money earned from work or other sources.
  • Examples:
    • Part-time job
    • Allowance
    • Gifts
    • Scholarships
    • Freelance work

Where does your money come from?

Ask students what income means to them. Provide examples of income sources for young adults.

Expenses: Where Does Your Money Go?

Expenses: The Money You Spend

  • Fixed Expenses: Costs that stay the same every month.
    • Rent
    • Car Payment
    • Netflix Subscription
  • Variable Expenses: Costs that change month to month.
    • Groceries
    • Gas
    • Entertainment
    • Shopping

What are some expenses you have now, or will have soon?

Explain fixed vs. variable expenses. Have students brainstorm examples for each category.

Creating Your First Budget

Budget: Your Money Map

  • Definition: A plan for how you will spend and save your money.
  • The Golden Rule:
    • **Income - Expenses = What's Left (or not!)
  • Steps:
    1. List all your income.
    2. List all your expenses.
    3. Track everything!
    4. Adjust as needed.

It's about making choices!

Introduce the concept of a budget as a plan. Explain the basic formula: Income - Expenses = What's Left.

Saving for Your Goals

Saving: Paying Future You

  • Why Save?
    • Emergencies (flat tire, broken phone)
    • Big Purchases (college, car, house down payment)
    • Fun Stuff (vacation, concert tickets)
  • Tips:
    • Pay Yourself First: Set aside savings right when you get paid.
    • Set clear goals.
    • Automate your savings.

What are you saving for?

Discuss why saving is important and different types of savings goals. Mention the 'Pay Yourself First' principle.

Understanding Debt (Briefly)

Debt: Borrowing from Future You

  • Definition: Money owed to someone else.
  • Examples:
    • Student Loans
    • Car Loans
    • Credit Card Debt
  • Key Idea: Use debt wisely, if at all. It's not free money!

The goal is financial freedom, not financial burdens.

Briefly touch upon debt, its types, and the importance of avoiding unnecessary debt. Emphasize responsible borrowing.

Recap & Next Steps

Today's Takeaways:

  • Budgeting is your superpower!
  • Know your income and expenses.
  • Save for your goals.
  • Be smart about debt.

Your Turn:

Summarize the key takeaways and transition to the next activity.

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Worksheet

Real-Life Budget Builder: Plan Your Future Money Moves

Name: ____________________________ Date: ______________

Welcome to your personal budget builder! This worksheet will help you practice managing your money so you can reach your financial goals.

Part 1: Your Income - Money In!

Think about a typical month when you might have income (e.g., from a part-time job, allowance, or gifts). List your sources of income and the estimated amount you expect to receive.

Income SourceEstimated Monthly Amount
1.



2.



3.



Total Monthly Income


Part 2: Your Expenses - Money Out!

Now, let's look at where your money might go. Categorize your expenses into

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Budgeting for Future You • Lenny Learning