Lesson Plan
Budgeting: Your Money, Your Power!
Students will be able to define income, expenses, and savings, and create a basic personal budget.
Understanding how to manage money is a crucial life skill. This lesson will help students make informed decisions about spending and saving, setting them up for financial success in the future.
Audience
7th Grade Small Group
Time
30-40 minutes
Approach
Interactive discussion, activity, and game to build practical budgeting skills.
Materials
- Budgeting Basics Slide Deck, - Budgeting Challenge Activity, - Budgeting Discussion Prompts, - Budgeting Board Game, - Whiteboard or large paper, - Markers/Pens, and - Calculators (optional)
Prep
Teacher Preparation
15 minutes
- Review all generated materials: Budgeting Lesson Plan, Budgeting Basics Slide Deck, Budgeting Challenge Activity, Budgeting Discussion Prompts, and Budgeting Board Game.
- Prepare the whiteboard or large paper for group brainstorming.
- Print or display the Budgeting Challenge Activity and Budgeting Discussion Prompts.
- Familiarize yourself with the rules of the Budgeting Board Game.
Step 1
Warm-Up: What is Money For?
5 minutes
- Begin by asking students: "What do you use money for?" Write their responses on the board.
- Transition to discussing the idea of making choices with money. Use Budgeting Basics Slide Deck - Slide 1 and Budgeting Basics Slide Deck - Slide 2.
Step 2
Introduction to Budgeting (Slide Deck & Discussion)
10 minutes
- Present the Budgeting Basics Slide Deck, explaining key terms like income, expenses (fixed vs. variable), and savings.
- Facilitate a short discussion using some of the Budgeting Discussion Prompts to check for understanding and encourage personal connections.
- Specifically, discuss the importance of saving. Use Budgeting Basics Slide Deck - Slide 3 and Budgeting Basics Slide Deck - Slide 4.
Step 3
Budgeting Challenge Activity
10 minutes
- Distribute the Budgeting Challenge Activity.
- Explain the scenario and guide students through creating a simple budget, identifying income and expenses.
- Circulate to provide support and answer questions. Use Budgeting Basics Slide Deck - Slide 5.
Step 4
Budgeting Board Game
10 minutes
- Introduce the Budgeting Board Game as a fun way to practice budgeting decisions.
- Divide students into pairs or small groups to play the game.
- Observe and facilitate as needed, encouraging strategic thinking. Use Budgeting Basics Slide Deck - Slide 6.
Step 5
Cool-Down: Budgeting Takeaways
5 minutes
- Bring the class back together.
- Ask students to share one new thing they learned or one important takeaway about budgeting. Refer to Budgeting Discussion Prompts.
- Conclude by emphasizing the power of budgeting for financial control. Use Budgeting Basics Slide Deck - Slide 7.
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Slide Deck
Your Money, Your Power!
What do you use money for?
- Buying snacks
- Saving for a new game
- Going to the movies
- Helping your family
Money helps us get things we need and want!
Greet students and introduce the topic of money. Ask them what they use money for in their daily lives. Encourage a quick brainstorm.
What is a Budget?
A plan for your money!
- Income: Money you earn or receive.
- Expenses: Money you spend on things.
- Savings: Money you set aside for the future.
Explain that budgeting is like making a plan for your money. It helps you decide how to spend, save, and share.
Where Does Your Money Go?
Expenses are things you spend money on.
- Fixed Expenses: Usually the same amount each time (e.g., subscription for a game).
- Variable Expenses: Can change each time (e.g., buying snacks, going out with friends).
Think about what you spend money on – is it fixed or variable?
Introduce the idea of expenses. Give examples of fixed (rent, phone bill) and variable (groceries, entertainment) expenses, simplifying for 7th grade.
Save It Up!
Why save money?
- For big goals (a new bike, a game console, college!)
- For unexpected needs (oops!)
- To feel secure and independent
Pay Yourself First! Set aside savings before spending.
Emphasize saving. Discuss why saving is important (big purchases, emergencies) and give examples relevant to students.
The Budgeting Challenge!
Time to put your skills to the test!
- You'll receive a scenario with income and expenses.
- Your task: Create a simple budget.
- Make choices to balance your money and reach a savings goal!
Introduce the Budgeting Challenge Activity. Explain that they'll get a scenario and need to make budgeting decisions.
Game Time: Budgeting Boss!
Let's play a game!
- Make smart spending and saving choices.
- Deal with unexpected financial events.
- See if you can reach your financial goals!
Introduce the Budgeting Board Game. Explain it's a fun way to practice making financial decisions.
You're a Budgeting Boss!
Quick Review:
- Income is what you get.
- Expenses are what you spend.
- Savings are what you set aside.
Budgeting gives you POWER over your money!
Conclude by summarizing the key takeaways and reinforcing the importance of budgeting for financial control.
Worksheet
Budgeting Challenge: My First Budget
Scenario: You are a 7th-grade student who gets an allowance of $20 each week. You also earn an extra $10 for doing chores around the house. You want to save up for a new video game that costs $60.
Your Income:
- Weekly Allowance: $20.00
- Chores: $10.00
Your Potential Expenses (per week):
- Snacks/Drinks at school: $5.00
- Online game subscription: $3.00 (fixed)
- Going to the movies with friends (once a month, so estimate $4.00 per week for this): $4.00 (variable)
- New comic book: $2.00
- Saving for video game: ?
Part 1: Calculate Your Total Income
What is your total income for one week?
Part 2: List Your Expenses
List your potential weekly expenses and categorize them as fixed or variable.
| Expense | Amount | Fixed/Variable |
|---|---|---|
| Snacks/Drinks | $ | |
| Online Game Subscription | $ | |
| Movies with Friends | $ | |
| New Comic Book | $ | |
| Total Expenses (before savings) | $ |
Part 3: Create Your Budget
Now, let's create a budget. Remember, you want to save for that $60 video game! How much can you save each week to reach your goal?
My Weekly Budget
-
Total Income: $
-
Total Expenses (including your chosen spending): $
-
Money Left for Savings: $
Part 4: Reflect and Adjust
- Are you able to save enough each week to reach your $60 video game goal in a reasonable amount of time (e.g., 2-3 weeks)? If not, what expenses could you reduce or eliminate?
- What was the hardest part about making decisions for your budget?
- Why is it important to think about both fixed and variable expenses when budgeting?
Discussion
Budgeting: Discussion Prompts
Use these questions to spark conversation and deepen understanding during the lesson.
Warm-Up Questions:
- What comes to mind when you hear the word "budget"?
- Have you ever saved up for something special? What was it? How did you do it?
- Do you think having a plan for your money is important? Why or why not?
During the Lesson / After Slide Deck:
- What's the difference between income and an expense? Can you give an example of each from your own life or a hypothetical one?
- Can you think of a "fixed expense" you might have now or in the future? What about a "variable expense"? How do they impact your spending?
- Why is saving money important? What are some things people save money for?
- If you only have a certain amount of money, what makes you decide what to spend it on?
After the Activity/Game:
- What was challenging about creating your budget during the activity?
- Did you have to make any tough choices about what to spend or save? Share an example.
- How did the Budgeting Board Game make you think differently about your spending habits?
- Imagine you receive an unexpected $10. What would you do with it and why? (Spend it, save it, or a mix?)
- What's one thing you learned today about budgeting that you think will be useful in the future?
Game
Budgeting Boss: The Game of Smart Choices!
Goal: Be the first player to save $100 and reach your