Financial Literacy Basics

Jennifer Babler

Tier 1

Lesson Plan

Financial Literacy Basics

Understand budgeting and saving

This lesson introduces students to essential financial literacy concepts, focusing on budgeting, saving, and understanding paychecks. These skills are crucial for career readiness and personal financial management. By learning these concepts, students will be better prepared to manage their finances effectively, make informed decisions, and plan for their future careers.

Audience

6th-12th Grade with IEPs

Time

1 hour

Approach

Understand budgeting and saving

Materials

Discussion Questions, Budgeting Worksheet, Financial Literacy Quiz, and Answer Key

Step 1

Introduction

10 mins

Begin with a brief discussion on what financial literacy means and why it's important.
Ask students if they have any experience with managing money, such as saving or budgeting.

Step 2

Budgeting Activity

20 mins

Distribute the Budgeting Worksheet.
Guide students through creating a simple budget based on a hypothetical monthly income.
Discuss the importance of distinguishing between needs and wants.

Step 3

Understanding Paychecks

15 mins

Explain the components of a paycheck, including gross pay, net pay, and deductions.
Use examples to illustrate how taxes and other deductions affect take-home pay.

Step 4

Saving Strategies

10 mins

Discuss different saving strategies and the importance of saving for future goals.
Encourage students to think about a personal saving goal and how they might achieve it.

Step 5

Closure

5 mins

Recap the key points of the lesson.
Administer the Financial Literacy Quiz to assess understanding.
Encourage students to ask any remaining questions.

Discussion

Discussion Questions

A set of questions to engage students in thinking about financial literacy and its importance.

What does financial literacy mean to you?

Encourage students to think about their own experiences with money and what they know about managing it.

Why is it important to understand how to budget and save?

Discuss the benefits of budgeting and saving, such as financial security and achieving personal goals.

Worksheet

Budgeting Worksheet

A worksheet to help students practice creating a budget based on a hypothetical income.

List your monthly income and expenses.

Consider both fixed and variable expenses.

Identify which expenses are needs and which are wants.

Needs are essential for living, while wants are additional desires.

Quiz

Financial Literacy Quiz

Answer Key

The answer key for the Financial Literacy Quiz, providing explanations for each answer.

What is the difference between gross pay and net pay?

Gross pay is before deductions; net pay is after deductions.
Gross pay is the total earnings before any deductions, while net pay is the amount received after deductions.

Why is it important to save money?

To have money for emergencies and future goals.
Saving money provides financial security and helps achieve future goals.