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Money Mastery

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Lesson Plan

Budgeting Basics for Beginners

Students will be able to create a simple personal budget, distinguish between needs and wants, and apply these skills to manage their allowance or first earnings.

Understanding how to manage money is a crucial life skill that helps students make responsible financial decisions now and in the future, laying the groundwork for financial independence.

Audience

7th Grade Group

Time

60 minutes

Approach

Interactive learning and practical application.

Materials

Your First Financial Blueprint (slide-deck), My Spending & Saving Reflections (journal), and Dream Budget Challenge (project)

Prep

Teacher Preparation

15 minutes

Step 1

Introduction: What is Money Mastery?

5 minutes

Step 2

Needs vs. Wants Discussion

15 minutes

  • Display the 'Needs vs. Wants' slide from the Your First Financial Blueprint Slide Deck.
    - Facilitate a group discussion about the differences, using examples relevant to students' lives (e.g., cell phone vs. basic phone, new video game vs. school supplies).
    - Ask students to share their own examples of needs and wants and justify their choices.

Step 3

Budgeting Basics & Guided Practice

20 minutes

Step 4

Dream Budget Challenge Introduction

15 minutes

Step 5

Wrap-Up and Reflection

5 minutes

  • Conclude by reiterating the importance of budgeting.
    - Ask students to share one new thing they learned or one way they plan to apply budgeting in their lives.
    - Collect My Spending & Saving Reflections Journal for review if desired.
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Slide Deck

Money Mastery: Your First Financial Blueprint

Ready to take control of your cash?

Welcome students and introduce the topic of 'Money Mastery.' Briefly explain that today they'll be learning about personal budgeting.

Today's Mission

By the end of this lesson, you will be able to:

  • Create a simple personal budget.
  • Differentiate between needs and wants.
  • Apply budgeting skills to manage your money.

Go over the lesson objective clearly, emphasizing the practical skills students will gain.

Needs vs. Wants: What's the Difference?

Needs:

  • Essential for survival (food, shelter, basic clothes).

Wants:

  • Things that improve your life but aren't essential (new video game, fancy snacks, designer clothes).

Think about it: What are some things you need? What are some things you want?

Define 'needs' and 'wants.' Prompt students for examples from their own lives. Guide them to understand that needs are essentials for survival, while wants are things that improve quality of life but aren't necessary.

Why Budgeting Matters

  • Reach your goals: Save for that new game, concert, or special item.
  • Stay organized: Know where your money is going.
  • Make smart choices: Decide what's truly important to spend on.
  • Feel in control: Manage your money instead of it managing you!

Explain why budgeting is important, connecting it to saving for goals and avoiding financial stress. Emphasize that budgeting helps them make smart choices with their money.

How to Build Your Budget Blueprint

  1. Know your income: How much money do you have coming in?
  2. Track your spending: Where does your money go?
  3. Categorize: Is it a need or a want?
  4. Allocate & Adjust: Plan how you'll spend and save.

Outline the basic steps for creating a budget. Keep it simple for middle schoolers: Know your income, track spending, categorize as needs/wants, adjust. This prepares them for the activity.

Budgeting in Action: A Quick Example

Let's say you have $50 for the month.

  • Needs: School lunch, bus fare
  • Wants: New book, movie ticket
  • Savings: Money for a big goal!

How would you divide your $50?

Go through a very simple, hypothetical budgeting example with the class. Use a common scenario, like an allowance or small earnings, and show how to divide it into needs and wants.

Your Mission: The Dream Budget Challenge

Now it's YOUR turn to create a budget!

  • You'll get a fun scenario.
  • You'll plan how to spend your money wisely.
  • You'll decide what are needs and what are wants.

Introduce the 'Dream Budget Challenge' project. Explain that this is where they'll apply what they've learned to a more creative scenario. Mention that they'll get a Project Guide.

Master Your Money!

Remember:

  • Budgeting helps you control your money.
  • Knowing the difference between needs and wants is key.
  • Small steps today lead to big financial success tomorrow!

What's one thing you'll remember from today?

Summarize the main points and encourage students to start thinking about their own spending and saving habits. Ask for one takeaway from the lesson.

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Journal

My Spending & Saving Reflections

Name: __________________________ Date: ______________

Part 1: Where Does My Money Go?

  1. Think about the last time you received money (allowance, gift, earned money). What did you do with it? Try to list at least 3 things you spent money on.






  2. Looking at your list above, which items would you classify as needs? Which would you classify as wants? Explain your reasoning for each.






  3. Do you currently save any money? If so, what are you saving for? If not, why do you think it's hard to save?






Part 2: My Money Goals

  1. Imagine you have $20 right now. List three things you would want to buy with it. (Be specific!)



  2. Now, thinking about needs and wants, how would you actually spend that $20? Would you save any? Explain your choices.






  3. What is one financial goal you have for yourself in the next month (e.g., save for a specific item, spend less on snacks)? How do you plan to achieve it?






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Project Guide

Dream Budget Challenge: Your First Financial Adventure!

Welcome, future financial whizzes! It's time to put your budgeting skills to the test. In this challenge, you'll be given a fun, hypothetical scenario where you have a limited amount of money. Your mission is to create a budget, deciding how you'll spend and save your money wisely, distinguishing between your needs and wants.

Your Scenario:

You've just been hired for a summer job helping out at a local community center! You'll be working for one month and will earn $200. You also have a few expenses you need to cover, but you also have some fun things you want to do!

Your Task:

Create a detailed budget for your $200. You need to account for all your money, showing where it will be spent and how much you will save. Use the categories of "Needs" and "Wants."

Step 1: Identify Your Expenses (Needs & Wants)

Brainstorm a list of potential things you might need or want to spend money on during your month. Think about:

  • Needs: (e.g., transportation to work, a small portion for lunch supplies, a new shirt for work if required)
  • Wants: (e.g., going to the movies with friends, buying a new video game, saving for a concert ticket, new art supplies, a special treat)

Step 2: Categorize and Estimate Costs

Create two lists: "Needs" and "Wants." For each item, estimate how much it will cost. Research online if you need help with realistic prices (e.g., "cost of a movie ticket").

Step 3: Create Your Budget!

Use the table below to plan out your budget. Make sure your total spending (Needs + Wants + Savings) does not exceed $200. You must include a section for savings, even if it's a small amount!

ItemNeed/WantEstimated Cost








































































Total Needs:


Total Wants:


Total Savings:


GRAND TOTAL:


Step 4: Reflection Questions

  1. Was it easy or difficult to decide between your needs and wants? Why?






  2. Were you able to include everything you wanted in your budget? If not, what did you have to cut out and why?






  3. How does creating this budget make you feel about managing real money in the future?






Step 5: Present Your Budget (Optional)

Be ready to share your budget and your reflections with your group or the class! Explain your choices and what you learned.

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