Lesson Plan
Budgeting Basics Roadmap
Students will learn to distinguish needs vs. wants, understand budgeting fundamentals, and design a personal monthly budget using hands-on activities, quizzes, and games.
Equipping students with budgeting and spending strategies builds financial responsibility, empowers smarter money choices, and lays the foundation for lifelong financial health.
Audience
9th Grade Class
Time
50 minutes
Approach
Interactive activities and real-world budget practice
Prep
Set Up Materials
10 minutes
- Review the Budgeting Basics Roadmap overview and sequencing.
- Print or digitally distribute the Expense vs. Want Quick Quiz for each student.
- Prepare the Budget Planner Template worksheets.
- Queue up the Smart Spending Strategies presentation.
- Gather any props or cards for the Spend or Save Challenge.
- Prepare a board or digital space for students to post their Savings Goal Pledge.
Step 1
Warm-Up: Expense vs. Want Quiz
5 minutes
- Distribute the Expense vs. Want Quick Quiz.
- Students circle whether each item is a need or want.
- Rapidly discuss answers, clarifying the importance of distinguishing between the two.
Step 2
Presentation: Budgeting Fundamentals
10 minutes
- Use the Smart Spending Strategies slide deck.
- Define income, fixed vs. variable expenses, and the 50/30/20 budgeting rule.
- Highlight real-world examples of good vs. poor spending choices.
Step 3
Activity: Monthly Budget Workshop
20 minutes
- Provide each student the Budget Planner Template.
- Assign a sample monthly income scenario.
- In pairs, students allocate funds to categories (housing, food, savings, entertainment).
- Circulate to support calculations and discuss trade-offs.
Step 4
Game: Spend or Save Challenge
10 minutes
- Divide class into small groups.
- Present scenario cards (unexpected car repair, concert ticket, bonus check).
- Groups decide to spend or save and justify their choices.
- Debrief: which choices align with sound budgeting principles?
Step 5
Cool-Down: Savings Goal Pledge
5 minutes
- Ask students to write a personal savings goal using the Savings Goal Pledge.
- Volunteers share pledges.
- Display pledges on a class board or digital wall for accountability.
Slide Deck
Smart Spending Strategies
Today's Topics:
- Needs vs Wants
- Fixed & Variable Expenses
- The 50/30/20 Rule
- Smart Spending Tips
- Real-World Examples
Welcome students! Today we’ll dive into Smart Spending Strategies as part of our Budgeting Basics Roadmap. We’ll cover needs vs wants, expense types, the 50/30/20 rule, and practical tips. Use this deck during the “Presentation: Budgeting Fundamentals” segment.
Needs vs Wants
Needs: Essentials required for survival.
Wants: Non-essentials that enhance quality of life.
Examples:
• Needs: Food, Shelter, Utilities
• Wants: Dining Out, Gaming, Fashion
Ask students to share items they think are needs or wants. Emphasize why distinguishing them helps in setting priorities when budgets are tight.
Fixed & Variable Expenses
Fixed Expenses:
• Rent/Mortgage
• Utilities
• Insurance
Variable Expenses:
• Groceries
• Entertainment
• Travel
Why it matters: Helps identify areas to adjust when budgeting.
Explain the difference between fixed and variable expenses. Invite students to name other examples in each category.
The 50/30/20 Rule
Allocate your after-tax income:
• 50% to Needs
• 30% to Wants
• 20% to Savings & Debt Repayment
Benefits: A simple guideline for balanced, sustainable finances.
Introduce the 50/30/20 rule. Show how splitting income this way ensures essentials are covered, wants are enjoyed responsibly, and savings grow.
Smart Spending Tips
• Compare prices and shop sales
• Use wish lists & cooling-off periods
• Automate savings contributions
• Track expenses regularly
• Prioritize high-value purchases
Share these actionable strategies. Encourage students to adopt at least two tips this month.
Real-World Examples
Scenario 1:
You receive a $200 bonus. How will you allocate it?
Scenario 2:
An unexpected $50 repair arises. What adjustments do you make?
Discuss spend vs save choices and justify using budgeting principles.
Read each scenario aloud and have groups discuss. Guide them to apply the 50/30/20 rule and needs vs wants distinctions in their decisions.
Key Takeaways & Next Steps
Key Takeaways:
• Distinguish needs vs wants
• Balance fixed & variable expenses
• Follow the 50/30/20 guideline
• Practice smart spending daily
Next: Monthly Budget Workshop with Budget Planner Template
Summarize the key concepts and transition to the Monthly Budget Workshop. Direct students to open their Budget Planner Template worksheets.
Warm Up
Expense vs Want Quick Quiz
Name: ______________________ Date: ______________________
Directions: Circle whether each expense is a Need or a Want.
- Rent: Need / Want
- Electricity bill: Need / Want
- Smartphone: Need / Want
- Video game: Need / Want
- Groceries: Need / Want
- Movie ticket: Need / Want
- Water bill: Need / Want
- Designer sneakers: Need / Want
- Bus fare to school: Need / Want
- Ice cream cone: Need / Want
Be ready to share one example of each and explain your choices!
Activity
Monthly Budget Workshop
Time: 20 minutes
Objective: Apply the 50/30/20 rule to a realistic monthly income scenario and practice making trade-offs.
Materials:
Instructions:
- Pair Up & Scenario Assignment (2 minutes)
• Find a partner. Your scenario: a monthly take-home pay of $2,500 with fixed bills (rent, utilities, insurance) totaling $1,200. - Complete the Budget Planner Template (12 minutes)
• Open your Budget Planner Template.
• Allocate your $2,500 across categories using the 50/30/20 guideline: 50% Needs, 30% Wants, 20% Savings & Debt.
• In each category, list line items (e.g., housing, groceries, entertainment) and assigned dollar amounts.
• Calculate and record percentages alongside dollar amounts. - Reflect on Trade-Offs (4 minutes)
• Identify two categories where you had to reduce spending or reallocate funds.
• Write a brief rationale for each trade-off: Why did you choose to cut back here? How did it impact other areas?
- Share & Debrief (2 minutes)
• Select one pair to share their budget and explain key trade-offs.
• Discuss as a group: Which budgets best balance essentials and savings? What surprised you about your allocations?
Teacher Notes: Circulate to ensure accurate calculations, encourage thoughtful justifications, and prompt deeper thinking about priorities when funds are limited.
Worksheet
Budget Planner Template
Name: ______________________ Date: ______________________
Monthly Income: $ ____________
1. Allocate Your Income Using the 50/30/20 Rule
Needs (50%)
Target: $ ____________ (50% of income)
Line Items:
- ________________ $ ____________
- ________________ $ ____________
- ________________ $ ____________
- ________________ $ ____________
Wants (30%)
Target: $ ____________ (30% of income)
Line Items:
- ________________ $ ____________
- ________________ $ ____________
- ________________ $ ____________
Savings & Debt (20%)
Target: $ ____________ (20% of income)
Line Items:
- ________________ $ ____________
- ________________ $ ____________
2. Totals Check
Total Needs + Wants + Savings & Debt = $ ____________ (should equal monthly income)
3. Reflection: Trade-Offs
- Category Reduced: ____________________________
Rationale: - Category Reduced: ____________________________
Rationale:
Game
Spend or Save Challenge
Time: 10 minutes
Objective:
Apply budgeting principles (needs vs wants, 50/30/20 rule) to real-world scenarios and practice justifying spending vs saving decisions.
Materials:
- Scenario cards (printed or projected)
- Chart paper or digital board for each group
Setup:
- Prepare a stack of scenario cards (see list below).
- Divide students into groups of 3–4.
Instructions:
- Teacher presents one scenario card at a time.
- Groups discuss and decide whether to Spend (use available funds for the expense) or Save (allocate funds toward savings/debt reduction).
- On your group’s chart paper or digital board, record:
- Scenario name
- Decision (Spend or Save)
- Dollar amount
- Justification using budgeting principles (e.g., “This is a want, so I’ll spend from my 30% wants category” or “Unexpected car repair is a need, so I’ll reallocate from wants”).
- After 2 minutes of discussion per card, each group briefly shares their decision and rationale.
- Continue until all scenario cards are discussed or time is up.
Scenario Cards:
- Unexpected Car Repair: $300 repair bill
- Concert Ticket: $120 ticket price
- Holiday Gift Shopping: $100 budget
- Bonus Check: $150 extra income
- Water Leak Fix: $75 plumbing expense
- Impulse Sale Item: $80 on-sale gadget
Debrief Questions:
- Which choices aligned best with the 50/30/20 rule?
- How did distinguishing needs vs wants influence your decision?
- What trade-offs did you consider when reallocating funds?
- How might these decisions impact your long-term savings goals?
Teacher Notes:
- Prompt students to reference the Smart Spending Strategies and Budget Planner Template.
- Encourage groups to consider both short-term enjoyment and long-term financial health.
- Highlight thoughtful justifications and group consensus building.
Cool Down
Savings Goal Pledge
Time: 5 minutes
Objective:
Reflect on and commit to a personal savings goal that is meaningful and achievable.
Directions:
- Identify Your Goal:
What am I saving for? ________________ - Set the Details:
Target Amount: $ ____________ Deadline: ________________ - Outline Your Plan (e.g., weekly contribution, cutting back on wants):
- Sign Your Pledge:
I pledge to save for my goal and follow my plan. ________________________________
Volunteers may share their pledges. Post pledges on our class board or digital wall for accountability and support!