Lesson Plan
Budget Basics Plan
Students will learn to categorize income and expenses, distinguish needs vs. wants, and create a balanced monthly budget using a template. They will apply these skills through a hands-on simulation and reflect on their money choices.
Understanding budgeting and saving empowers students for financial independence in school and future workplaces. This foundational practice builds lifelong money-management habits.
Audience
9th Grade
Time
50 minutes
Approach
Interactive slides, simulation, worksheet, and reflection.
Materials
Prep
Prepare Materials and Review Content
10 minutes
- Print enough copies of the Monthly Budget Template for each student
- Print and cut Budget Simulation Materials (income cards, expense cards, scenario sheets)
- Queue up the Money Matters Slides on the classroom display
- Print or project the Spending Reflection Prompt for the closing discussion
- Review all materials to ensure understanding of each activity
Step 1
Introduction
5 minutes
- Welcome students and introduce the topic of personal finance and budgeting
- Explain lesson objectives: tracking income/expenses, planning a budget, and reflecting on spending choices
- Quick warm-up question: “What’s one thing you’d spend $50 on and why?”
Step 2
Slide Presentation
10 minutes
- Present key concepts using Money Matters Slides:
- What is income vs. expense?
- Needs vs. wants
- Importance of balancing a budget
- Pause for questions after each section
Step 3
Budget Simulation
20 minutes
- Divide students into small groups and distribute Budget Simulation Materials
- Each student draws an income card and several expense cards
- Groups work together to allocate their income across expenses, identifying which wants to cut if over budget
- Circulate to support groups and prompt deeper thinking (e.g., “What would you sacrifice to save more?”)
Step 4
Worksheet Completion
10 minutes
- Hand out the Monthly Budget Template
- Students individually transfer their simulated data into the template
- Encourage them to adjust figures to meet a balanced budget
- Offer help as needed
Step 5
Cool-Down and Reflection
5 minutes
- Display the Spending Reflection Prompt
- Ask volunteers to share one decision they made and what they learned about needs vs. wants
- Summarize key takeaways and emphasize the importance of thoughtful money planning
Slide Deck
Money Matters
A foundational lesson on budgeting, saving, and planning.
Welcome students and introduce today’s topic: personal finance and budgeting. Highlight the learning goals: categorize income and expenses, create a balanced budget, and reflect on spending choices.
What Is Income?
• Money you receive from work, allowances, gifts, or other sources.
Explain that income is any money you receive. Ask a student to share a source of income they know (allowance, part-time job).
What Is an Expense?
• Costs you pay for needs (essentials) and wants (extras).
Define expenses. Invite examples of daily expenses (snacks, bus fare). Emphasize essentials vs extras.
Needs vs. Wants
• Needs: Essentials you must have to live or function safely.
• Wants: Extras that make life more enjoyable, but aren’t essential.
Draw a two-column chart on the board. Have students call out needs vs wants and place them correctly.
Balancing a Budget
• Total Income – Total Expenses = Budget Balance
• Positive balance: You save money.
• Negative balance: You overspend.
Show the budget equation. Stress the importance of a positive balance.
Budget Planning Steps
- List all income sources
- List fixed and variable expenses
- Prioritize needs over wants
- Adjust spending to balance your budget
Walk through each step slowly, checking for understanding. Relate steps back to the simulation activity.
Example Budget Scenario
Monthly Income: $1,000
Rent: $400
Food: $200
Transportation: $100
Entertainment: $150
Clothing: $100
Balance: $50
Use this real-world example to illustrate balancing. Ask: “What could you adjust if expenses exceed income?”
Your Turn: Simulation Prep
• In groups, draw income and expense cards.
• Plan your budget together.
• Decide which wants to cut if you’re over budget.
Transition into group activity. Review instructions and expectations.
Reflection
• What did you learn about needs vs. wants?
• How will you apply budget planning in real life?
Prepare students for the cool-down. Prompt them to think about their choices.
Activity
Budget Simulation Activity
In this hands-on group simulation, students practice creating and balancing a simple monthly budget using income and expense cards.
Description
Students work in small groups to role-play managing a limited monthly income. They’ll draw income and expense cards, calculate totals, and negotiate cuts to balance their budgets. This activity fosters collaboration, critical thinking, and real-world money-management skills.
Materials
- A shuffled deck of Income Cards (each card lists a monthly income amount)
- A shuffled deck of Expense Cards (each card lists a monthly cost and labels it as a need or a want)
- Scenario prompt slips (optional additional context)
- Calculators or paper and pencil for calculations
Income Cards (Draw 1 per group)
• Part-time Job: $800
• Weekend Tutoring: $600
• Babysitting: $500
• Freelance Gig: $1,000
• Allowance: $300
Expense Cards (Draw 5 per group)
• Rent: $400 (Need)
• Food: $200 (Need)
• Transportation: $100 (Need)
• Utilities: $100 (Need)
• Smartphone Plan: $60 (Need)
• Entertainment: $150 (Want)
• Clothing: $100 (Want)
• Gym Membership: $50 (Want)
• Streaming Subscriptions: $30 (Want)
• Gift: $75 (Want)
Instructions (20 minutes)
- Divide into groups of 3–4 students.
- Each group shuffles both decks and draws one Income Card and five Expense Cards.
- Calculate your total monthly income and total expenses.
- Compare totals:
- If expenses ≤ income, discuss where you might choose to save or splurge.
- If expenses > income, decide which wants to cut or reduce to bring expenses within your income.
- Record your final budget plan and list which items you kept, reduced, or removed, plus explain your decisions.
- Be prepared to share your group’s strategy and reflections with the class.
Worksheet
Monthly Budget Template
Use your simulation data or your own scenario to fill in each section below. Adjust amounts as needed to balance your monthly budget.
1. Income
List up to three sources of income for the month.
Source 1: ________________________ Amount: $________
Source 2: ________________________ Amount: $________
Source 3: ________________________ Amount: $________
Total Monthly Income: $________
2. Fixed Expenses (Needs)
List up to five essential expenses (needs) and their monthly costs.
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
Total Fixed Expenses: $________
3. Variable Expenses (Wants)
List up to five optional expenses (wants) and their monthly costs.
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
- Item: ________________________ Cost: $________
Total Variable Expenses: $________
4. Budget Calculations
Total Expenses (Needs + Wants): $________
Budget Balance (Income – Expenses): $________
5. Reflection Questions
a) What is your budget balance? (positive or negative) ________________________
b) If your budget balance is negative, which expense(s) would you adjust or remove to bring it into balance?
c) Based on this exercise, what is one change you will make in your real-life spending or saving habits?
Cool Down
Spending Reflection
Now that you’ve practiced balancing needs and wants, reflect on your experience.
-
What was one “want” you chose to keep or cut in your budget, and why?
-
How did that decision affect your overall budget balance?
-
Think of a real-life financial goal (e.g., saving for a concert ticket or new gadget). How will you apply this needs vs. wants strategy to reach that goal?