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Financial Literacy Basics

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Dan Tarquin

Tier 1

Lesson Plan

Financial Literacy Basics

Introduce financial concepts

This lesson introduces students to basic financial concepts such as budgeting, saving, and understanding credit. By learning how to manage their finances through hands-on activities, students will gain essential skills needed for their financial future.

Audience

9th Grade Students

Time

1 hour

Approach

Introduce financial concepts

Materials

Whiteboard and markers, Handouts on budgeting and credit, Printed role-play scenarios, Simple Budget Worksheet, and Discussion Questions

Step 1

Introduction

10 mins

  • Briefly discuss the importance of financial literacy in everyday life and future planning.
  • Highlight key concepts: budgeting, saving, and understanding credit.

Step 2

Group Discussion

10 mins

  • Use the handouts to explain basic concepts of budgeting and credit.
  • Ask students about their understanding and experiences with money management.
  • Facilitate discussion with pre-prepared questions.

Step 3

Activity 1: Create a Simple Budget

15 mins

  • Distribute the Simple Budget Worksheet.
  • Explain the components of a budget: income, expenses, savings.
  • Have students create a budget based on a given scenario.

Step 4

Activity 2: Role-Playing Financial Scenarios

15 mins

  • Divide students into small groups and assign each group a financial scenario from the printed cards.
  • Students will role-play the scenario, focusing on making financial decisions.
  • Groups will present their scenarios and decisions to the class.

Step 5

Closure

10 mins

  • Summarize key points from the lesson.
  • Reflect on the role-playing activity and discuss any lessons learned.
  • Emphasize the importance of financial planning for personal success.
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Discussion

Discussion Questions

A set of questions to guide classroom discussion on financial literacy topics such as budgeting, saving, and credit.

Why is it important to create a budget?

Discuss how budgeting helps in managing money, planning for future expenses, and ensuring financial stability.







What are the benefits of saving money?

Talk about the security of having savings for emergencies, opportunities for investments, and achieving financial goals.







How can understanding credit help you in the future?

Explain how good credit scores can help in securing loans, lower interest rates, and overall financial credibility.







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Worksheet

Simple Budget Worksheet

Students will use this worksheet to create a basic budget based on a given financial scenario.

List your total monthly income.

Include all sources of income such as allowances, part-time job, etc.







List and categorize your monthly expenses.

Think about categories like food, entertainment, transportation, and savings.







Calculate your total expenses and compare it with your income.

Find out if you are spending more than you earn or if you have surplus money.







Identify areas where you can reduce expenses to balance your budget or increase your savings.

Consider non-essential expenses or ways to save on necessary expenses.







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Worksheet

Role-Playing Scenarios

Cards with different financial situations for students to role-play and discuss financial decisions.





Scenario 1: You have a part-time job and earn $300 a month. You want to save $50 each month for a new phone. Create a budget that allows this.








Scenario 2: You've received $200 as a birthday gift. Decide how to allocate this money, considering your monthly expenses and savings goals.








Scenario 3: You are planning a trip with friends that will cost $150. Your current budget does not accommodate this expense. Determine steps to adjust your budget to save for the trip.




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