Lesson Plan
Money Smarts Starter
Students will learn budgeting and saving fundamentals, practice making financial decisions through interactive scenarios, and apply knowledge by creating a monthly budget plan.
This lesson equips students with practical money management skills, fostering responsible financial habits and preparing them for real-world financial decisions early.
Audience
9th Grade Students
Time
50 minutes
Approach
Interactive discussion, simulation, planning, and assessment.
Materials
Prep
Prepare Materials
10 minutes
- Review Budget Basics Slides and note discussion points.
- Print sufficient copies of the Monthly Budget Planner.
- Set up stations for the Expense vs. Income Simulation with any game cards or digital setups.
- Upload or print the Financial Knowledge Check for delivery.
Step 1
Introduction
5 minutes
- Welcome students and outline the session's objectives.
- Prompt a brief discussion: What do you know about budgeting and saving?
Step 2
Budget Basics Presentation
10 minutes
- Present key concepts using Budget Basics Slides.
- Define income, expenses, savings, and distinguish wants vs. needs.
- Invite questions to clarify terms.
Step 3
Expense vs. Income Simulation
15 minutes
- Divide into small groups and distribute Expense vs. Income Simulation materials.
- Each group manages simulated finances, choosing expenses within given income limits.
- Facilitate conversation on trade-offs and prioritization.
Step 4
Monthly Budget Planning
15 minutes
- Hand out the Monthly Budget Planner.
- Students create an individual budget based on provided income and expense scenarios.
- Circulate to support and provide feedback.
Step 5
Financial Knowledge Check and Wrap-Up
5 minutes
- Administer the Financial Knowledge Check quiz.
- Summarize key takeaways and ask each student to share one insight.
- Encourage students to track personal expenses this week as an extension.
Slide Deck
Budget Basics
Understanding the fundamentals of managing your money: income, expenses, savings, and distinguishing wants vs. needs.
Introduce the session and its purpose. Highlight why understanding budgeting basics helps with real-life money decisions.
What Is Income?
- Income is money you earn or receive.
- Common sources: wages from jobs, allowances, gifts.
Define income clearly. Ask students where they get money from and list examples on the board.
What Are Expenses?
- Expenses are costs or money you spend.
- Fixed expenses: rent, subscriptions.
- Variable expenses: food, entertainment.
Explain expenses. Differentiate between fixed (same each month) and variable (change month to month). Invite student examples.
What Is Savings?
- Savings is the portion of income you set aside.
- Helps cover unexpected needs and reach financial goals.
Introduce savings as money set aside for later. Discuss reasons for saving: emergencies, goals, and future needs.
Wants vs. Needs
- Needs are essentials for living (food, shelter, utilities).
- Wants are extras that enhance life but aren’t essential (video games, dining out).
Clarify wants vs needs. Use relatable examples so students see the difference.
Examples: Wants vs. Needs
- Buying groceries for dinner
- Upgrading to the newest smartphone
- Paying the electricity bill
- Going to a concert
Review each example and ask students to identify whether it’s a want or a need, and why.
Why It Matters
- Prioritizing needs ensures basic living expenses are covered.
- Balancing wants keeps savings on track and prevents overspending.
Discuss why distinguishing between wants and needs is critical for effective budgeting and saving.
Class Discussion
Think of a recent purchase you made. Was it a want or a need? Explain your reasoning.
Encourage students to reflect on their own spending choices and how they would categorize recent purchases.
Up Next: Simulation
Expense vs. Income Simulation
• Practice making choices within a budget
• Experience trade-offs and prioritization
Transition to the hands-on simulation activity where students will apply these concepts in realistic scenarios.
Game
Expense vs. Income Simulation Game Instructions
Objective: Students will practice managing a fixed income, prioritizing expenses, and making trade-off decisions in small groups.
Materials per Group:
- Scenario Card (detailing monthly income and fixed expenses)
- Expense Cards (variable costs and wants)
- Play Money or Tokens (represent budget dollars)
- Decision Worksheet (space to allocate funds and record choices)
- Timer or stopwatch
Setup (5 minutes):
- Divide the class into groups of 3–4 students.
- Give each group one Scenario Card, a stack of Expense Cards, play money or tokens totaling the scenario’s income, and one Decision Worksheet.
- Explain that each token = $10 in their monthly budget.
Game Play (15 minutes):
- Round 1 – Fixed Expenses (5 minutes)
- Groups review the fixed costs on their Scenario Card (e.g., rent, utilities, transportation).
- They pay these first by placing the required tokens on the “Fixed” column of their Decision Worksheet.
- Round 2 – Variable Expenses & Wants (7 minutes)
- Groups draw five Expense Cards each (e.g., groceries, internet, movies, gym membership).
- For each card, decide whether to pay in full (place tokens on “Variable”), postpone (set aside the card), or negotiate a lower amount (group consensus).
- Record decisions and remaining tokens on the worksheet.
- Round 3 – Final Review (3 minutes)
- Groups see if they have unspent tokens. They can choose to allocate extra to savings (safety net) or splurge on one postponed want.
- Record final decisions.
Debrief & Discussion (5 minutes):
- Ask each group to share one tough decision they made and why.
- Discuss: How did you decide which wants to keep or drop? What strategies helped you stay within budget?
- Relate back to real-life budgeting: Why is it important to pay fixed expenses first and plan for savings?
Extension: Encourage students to track their own weekly spending using their Decision Worksheet format and reflect on real trade-offs at home.
Worksheet
Monthly Budget Planner
Name: ________________________ Date: _______________
1. Income
- Primary Income (e.g., wages): $__________
- Secondary Income (allowance, gifts): $__________
- Total Monthly Income: $__________
2. Fixed Expenses
| Expense Category | Monthly Cost ($) |
|---|---|
| Rent / Housing | _____ |
| Utilities (electric, water, etc.) | _____ |
| Transportation (bus, gas, rides) | _____ |
| Subscriptions (streaming, phone) | _____ |
| Other Fixed Expense: ____________ | _____ |
| Total Fixed Expenses | _____ |
3. Variable Expenses
| Expense Category | Estimated Cost ($) |
|---|---|
| Groceries / Food | _____ |
| Entertainment (movies, games) | _____ |
| Clothing & Personal Items | _____ |
| Miscellaneous: ____________ | _____ |
| Total Variable Expenses | _____ |
4. Savings Goals
Goal 1: ____________________________ Amount: $__________ Timeline: __
Goal 2: ____________________________ Amount: $ Timeline: __
Goal 3 (optional): ________________ Amount: $ Timeline: ____________
5. Summary & Balance
- Total Income: $__________
- Total Fixed Expenses: $__________
- Total Variable Expenses: $__________
- Total Savings Contributions: $__________
- Remaining Balance: $__________
6. Reflection
- What difficult choices did you make when planning your budget? Why?
- How can you adjust your spending or savings next month to meet your goals? Provide specific steps.
Quiz
Financial Knowledge Check