Lesson Plan
Budgeting Basics Lesson Plan
In this 60-minute lesson, students will learn core budgeting principles and create a mock college budget, applying expense tracking and savings strategies to plan for financial independence.
Developing budgeting skills is essential for responsible financial management in college and beyond. This lesson equips 11th graders with practical tools to track expenses, prioritize savings, and build long-term financial independence.
Audience
11th Grade Students
Time
60 minutes
Approach
Interactive presentation, collaborative budget creation, and peer feedback.
Materials
Prep
Review Materials and Setup
15 minutes
- Review Managing Your Money slide deck and key talking points.
- Familiarize yourself with the Financial Freedom Guide project instructions.
- Prepare digital or printed copies of the Monthly Budget Template.
- Set up the Budgeting Concepts Check for in-class or online use.
- Arrange students into small groups of 3–4 members.
Step 1
Introduction & Objectives
10 minutes
- Introduce the importance of budgeting for college life and financial independence.
- Present lesson objectives: understand expenses, design a budget, plan for savings.
- Engage students with a quick question: “What would you spend most on during your first month of college?”
- Transition to the budgeting basics presentation.
Step 2
Budgeting Basics Presentation
15 minutes
- Launch the Managing Your Money slide deck.
- Define and discuss income, fixed vs. variable expenses, and savings.
- Highlight typical college costs (tuition, housing, food, transportation).
- Pause for comprehension checks and real-life examples.
Step 3
Group Activity: Budget Plan Creation
20 minutes
- Distribute the Monthly Budget Template to each group.
- Guide groups to use the Financial Freedom Guide for step-by-step planning tips.
- Assign roles within each group: researcher, recorder, and presenter.
- Groups estimate monthly income sources and categorize expected expenses.
- Incorporate savings goals and adjust budget allocations accordingly.
Step 4
Group Presentations and Peer Feedback
10 minutes
- Each group presents its mock budget (2 minutes per group).
- Classmates provide feedback using guided questions: Did they account for all major costs? Are savings realistic?
- Facilitate a brief discussion on trade-offs and budgeting strategies observed.
Step 5
Assessment & Wrap-Up
5 minutes
- Administer the Budgeting Concepts Check to assess understanding.
- Ask students to share one key takeaway or budgeting tip they learned.
- Collect materials and outline any follow-up assignments or reflections.
Slide Deck
Managing Your Money
Learn how to budget, track expenses, and save wisely for your college journey.
Welcome students and introduce today’s focus on budgeting essentials. Explain how mastering these skills sets the foundation for financial independence.
Agenda
- What is budgeting?
- Income vs. expenses
- Fixed & variable costs
- Savings strategies
- College expenses overview
- Expense tracking tips
- Next steps and group activity
Walk through each agenda item briefly so students know what to expect.
What Is Budgeting?
Budgeting is planning how to allocate your income to cover expenses and save. It helps you avoid overspending and reach financial goals.
Define budgeting and ask if anyone has ever created a budget before. Emphasize its role in controlling spending and meeting goals.
Income & Expenses
- Income: Money you receive (e.g., part-time job wages, allowances, scholarships)
- Expenses: Money you spend (e.g., rent, food, transportation)
Clarify that income can come from work, allowances, scholarships, etc. Discuss common expense types.
Fixed vs. Variable Expenses
- Fixed expenses: Same amount each month (e.g., rent, streaming subscriptions)
- Variable expenses: Change month to month (e.g., groceries, entertainment, gas)
Use examples from student experiences. Ask for suggestions of other fixed and variable costs.
Importance of Savings
- Builds an emergency fund
- Funds future goals (e.g., textbooks, travel)
- Reduces financial stress and unexpected shortfalls
Stress the habit of saving even a small amount regularly. Discuss the power of compound interest briefly.
Typical College Expenses
- Tuition & fees
- Housing & utilities
- Food & groceries
- Transportation
- Books & supplies
- Personal & entertainment
Provide rough cost ranges for each category. Encourage students to think about local costs.
Tips for Tracking Expenses
- Save receipts or use mobile apps
- Update your budget weekly
- Categorize every expense
- Review and adjust allocations regularly
Recommend both digital and manual tracking methods. Highlight consistency.
Interactive Activity
Think about your monthly college expenses. In your group, list:
- 3 fixed expenses you expect
- 3 variable expenses you expect
Discuss why each matters.
Give students 2–3 minutes to brainstorm individually, then discuss in small groups.
Next Steps
- Use the Monthly Budget Template (#monthly-budget-template-worksheet) to draft your budget
- Refer to the Financial Freedom Guide (#financial-freedom-guide-project) for step-by-step tips
- Prepare to present your mock budget to the class
Explain how this slide leads into the group budget project. Direct students to open materials.
Project Guide
Financial Freedom Guide
Overview
In this collaborative project, your group will create a mock monthly budget and savings plan for life as a college student. You’ll apply budgeting principles—estimating income, categorizing expenses, and setting savings goals—to build a realistic financial plan.
Objectives
- Estimate monthly income sources for a typical college student.
- Identify and categorize fixed vs. variable expenses.
- Set a realistic monthly savings goal.
- Collaborate effectively and present your financial plan.
Materials
- Monthly Budget Template
- Budgeting Concepts Check
- Calculator or budgeting app
- Reference cost data (provided by teacher)
Group Roles
- Researcher: Gathers data on typical college costs and income sources.
- Recorder: Fills out the budget template and documents calculations.
- Presenter: Leads the presentation and responds to questions.
Project Timeline & Steps (20 minutes total)
- Assign Roles & Review Materials (2 min)
- Assign researcher, recorder, and presenter roles.
- Open the Monthly Budget Template and confirm everyone understands its sections.
- Brainstorm Income (3 min)
- Researcher lists potential income sources (e.g., part-time job wages, scholarships).
- Agree on realistic monthly amounts and record them.
- Estimate Expenses (7 min)
- Categorize expected costs into fixed (e.g., rent, subscriptions) and variable (e.g., groceries, entertainment).
- Use reference cost data to estimate each line item.
- Recorder fills in the template’s expense section.
- Set Savings Goals (4 min)
- Decide on a monthly savings amount for emergencies or future goals.
- Adjust your expense estimates if needed to accommodate savings.
- Record your final savings figure in the template.
- Review & Finalize Budget (4 min)
- Check all entries for accuracy and realism.
- Make any final adjustments.
- Prepare a brief explanation of your group’s key budgeting choices.
Deliverables
- A fully completed Monthly Budget Template with income, expenses, and savings sections filled.
- A 2-minute group presentation summarizing your budget and justifying your decisions.
Evaluation Criteria
During presentations, teacher and peers will use these guided questions:
- Did the budget include all major income and expense categories?
- Are the income and expense estimates realistic and well-justified?
- Is there a clear, viable savings plan?
- How effectively did the group collaborate and communicate the plan?
Worksheet
Monthly Budget Template
Group Name: _________________________ Date: __________
1. Income Sources
List all potential monthly income sources for a college student and estimate amounts.
| Source | Estimated Amount ($) |
|---|---|
| 1. ___________________________ | _________ |
| 2. ___________________________ | _________ |
| 3. ___________________________ | _________ |
| 4. ___________________________ | _________ |
| Total Monthly Income | _________ |
2. Fixed Expenses
Fixed expenses are the same each month. List at least 5 common fixed costs and estimate.
- Rent/Housing: ________________________ $_________
- Utilities (electricity, water, internet): ________________________ $_________
- Subscriptions (streaming, software): ________________________ $_________
- Insurance (health, renters’): ________________________ $_________
- Other fixed expense: ________________________ $_________
3. Variable Expenses
Variable expenses change month to month. List at least 5 and estimate.
- Groceries/Food: ________________________ $_________
- Transportation (gas, public transit): ________________________ $_________
- Entertainment: ________________________ $_________
- Personal Care (hygiene, clothing): ________________________ $_________
- Miscellaneous: ________________________ $_________
4. Savings Goal
Decide how much you want to save each month for emergencies or future goals.
- Desired Monthly Savings: $_________
5. Reflection
Why is setting and meeting a monthly savings goal important for your financial independence?
6. Budget Adjustments
Based on your income and expenses above, explain any adjustments you made to reach your savings goal.
Use this completed template to prepare your 2-minute group presentation, summarizing key income sources, expense categories, and your savings strategy. Good luck!
Quiz
Budgeting Concepts Check