Lesson Plan
Money Moves: Budget a Real Week
Given a realistic income scenario, students will create a simple weekly budget with four categories (needs, wants, savings, giving) that balances to zero.
Understanding how to budget is a crucial life skill. This lesson empowers students to take control of their finances, make informed spending decisions, and build a foundation for future financial stability.
Audience
11th Grade
Time
30 minutes
Approach
Interactive mini-lesson, hands-on simulation, and reflective activities.
Materials
Smartboard or projector, Whiteboard or chart paper, Money Moves Slides, Zero-Based Budget Sheet, Envelopes (4 per student group), Play money or slips of paper representing income, Envelope Budget Simulation, Quick Check Budget Math, and Exit Ticket: One Trade-Off
Prep
Teacher Preparation
15 minutes
- Review the Money Moves Lesson Plan and all generated materials.
- Prepare the Money Moves Slides for presentation.
- Print copies of the Zero-Based Budget Sheet (one per student).
- Gather envelopes (4 per small group of 3-4 students) and play money or slips of paper for the income scenario (e.g., $500 per group).
- Review the Envelope Budget Simulation instructions.
- Print copies of the Quick Check Budget Math and Exit Ticket: One Trade-Off.
Step 1
Do Now: Needs vs. Wants (5 minutes)
5 minutes
- Display a few sample expenses on the board (e.g., cell phone bill, new sneakers, groceries, concert tickets, rent).
- Instruct students to classify each as a 'Need' or a 'Want' individually or in small groups.
- Briefly discuss their classifications as a class, encouraging justification.
Step 2
Mini-Lesson: Zero-Based Budgeting (10 minutes)
10 minutes
- Use the Money Moves Slides to introduce zero-based budgeting.
- Explain the four categories: Needs, Wants, Savings, and Giving.
- Walk through a sample income scenario and demonstrate how to allocate funds until the budget balances to zero, emphasizing 'paying yourself first' (savings) and trade-offs.
Step 3
Activity: Envelope Budget Simulation (10 minutes)
10 minutes
- Divide students into small groups (3-4 students).
- Distribute 4 envelopes, play money (representing a weekly income of say, $500), and the Zero-Based Budget Sheet to each group.
- Explain the income scenario and instruct groups to allocate their 'money' into the four envelopes (Needs, Wants, Savings, Giving) and complete their budget sheet, ensuring it balances to zero.
- Circulate to assist and facilitate discussion about choices and trade-offs using the Envelope Budget Simulation.
Step 4
Wrap Up: Quick Check & Exit Ticket (5 minutes)
5 minutes
- Have students complete the Quick Check Budget Math individually.
- Instruct students to complete the Exit Ticket: One Trade-Off, reflecting on one trade-off they had to make or observed during the activity.
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Slide Deck
Money Moves: Budgeting Your Week
Let's learn how to make smart choices with our money!
Welcome students and introduce the concept of 'Money Moves'. Ask them to think about what 'money moves' might mean to them.
Need vs. Want
Which are essential? Which are desired?
- Cell Phone Bill
- New Sneakers
- Groceries
- Concert Tickets
- Rent
Present various expenses and have students categorize them as needs or wants. Encourage discussion on why certain items fall into one category over another. This directly ties into the 'Do Now' activity.
What is Zero-Based Budgeting?
Every dollar has a job! Income - Expenses = 0
Four key categories:
1. Needs: Essentials for survival.
2. Wants: Things you desire but aren't essential.
3. Savings: Money put aside for future goals.
4. Giving: Contributing to others or causes.
Introduce zero-based budgeting. Explain that every dollar needs a 'job' and the goal is for income minus expenses to equal zero. Emphasize the four categories: Needs, Wants, Savings, Giving.
Sample Scenario Walkthrough
Let's say you earn $500 this week. How would you divide it?
- Rent portion: $150 (Need)
- Groceries: $70 (Need)
- Transportation: $30 (Need)
- New Video Game: $60 (Want)
- Eating Out: $40 (Want)
- Savings: $100 (Savings)
- Charity: $20 (Giving)
- Fun Money: $30 (Want)
Total: $500
Walk through a simplified sample scenario. Use a hypothetical weekly income and show how to allocate funds across the four categories. Highlight the idea of 'paying yourself first' by putting money into savings right away. Discuss trade-offs.
Your Turn: Envelope Budget Simulation!
Work in groups to budget a weekly income.
1. Get your envelopes, play money, and budget sheet.
2. Allocate your money into Needs, Wants, Savings, and Giving.
3. Make sure your budget balances to zero!
4. Discuss your choices and trade-offs.
Explain the upcoming activity. Students will work in groups to budget a fictional income using play money and envelopes. They will fill out their budget sheet, ensuring it balances to zero. Remind them about making trade-offs.
Budgeting: Your Financial Superpower
Budgeting helps you:
- Understand where your money goes.
- Make intentional spending choices.
- Save for your goals.
- Avoid financial stress.
Let's do a quick check and then reflect!
Conclude the lesson by reviewing the key takeaways and preparing students for the quick check and exit ticket. Reinforce the importance of budgeting for financial control.
Worksheet
Zero-Based Budget Sheet
Name: _________________________ Date: _________________________
Weekly Income: $__________________
Budget Categories
For each category, list your expenses/allocations and the amount. Remember, your total income minus your total expenses should equal ZERO!
1. Needs (Essential expenses for survival)
| Item | Amount |
|---|---|
| Subtotal Needs |
2. Wants (Desired expenses, non-essential)
| Item | Amount |
|---|---|
| Subtotal Wants |
3. Savings (Money set aside for future goals)
| Item | Amount |
|---|---|
| Subtotal Savings |
4. Giving (Contributing to others or causes)
| Item | Amount |
|---|---|
| Subtotal Giving |
Budget Summary
| Category | Total Amount |
|---|---|
| Total Needs | |
| Total Wants | |
| Total Savings | |
| Total Giving | |
| TOTAL EXPENSES |
Does your budget balance to zero? (Weekly Income - Total Expenses)
Weekly Income: $__________________
- Total Expenses: $__________________
= Remaining: $__________________ (This should be zero!)
Activity
Envelope Budget Simulation
Objective
To simulate creating a zero-based budget using physical money and envelopes, making real-time decisions about financial allocation.
Materials Needed Per Group (3-4 students)
- 4 Envelopes (labeled: Needs, Wants, Savings, Giving)
- Play money (or slips of paper) representing a specific weekly income (e.g., $500)
- Zero-Based Budget Sheet (one per student)
Instructions
-
Receive Your Income: Your group will be given a total weekly income in play money. This is all the money you have to budget for the week.
-
Label Your Envelopes: Ensure your four envelopes are clearly labeled: "Needs", "Wants", "Savings", and "Giving".
-
Discuss Your Needs: As a group, decide what your essential weekly "Needs" are (e.g., a portion of rent/housing, groceries, transportation, utility bills). Physically put the amount of play money for each need into the "Needs" envelope. Record these on your Zero-Based Budget Sheet.
-
Prioritize Savings: Before you spend on wants, decide how much you will save this week (e.g., for a future goal like college, a car, or an emergency fund). Put this amount of play money into the "Savings" envelope. Record this on your Zero-Based Budget Sheet.
-
Consider Giving: If you choose to give, decide on an amount and place it into the "Giving" envelope. Record this on your Zero-Based Budget Sheet.
-
Allocate Your Wants: With the remaining money, discuss and decide on your "Wants" (e.g., entertainment, dining out, new clothes, subscriptions). This is where trade-offs come in! You might not be able to afford everything you want. Place the money into the "Wants" envelope. Record these on your Zero-Based Budget Sheet.
-
Balance to Zero: Ensure that all of your play money has been allocated to one of the four envelopes and that your budget on the Zero-Based Budget Sheet equals zero (Income - Total Expenses = 0).
-
Group Discussion: Be prepared to discuss with the class:
- What choices were easy? What was difficult?
- What trade-offs did you have to make?
- How did it feel to see your money allocated to specific categories?
- What did you learn about your spending priorities?
Quiz
Quick Check Budget Math
Cool Down
Exit Ticket: One Trade-Off
Name: _________________________
Date: _________________________
Reflect on Your Budgeting Choices
-
During today's budgeting activity, describe one specific trade-off you or your group had to make. What did you choose to spend money on, and what did you have to give up or reduce to make that choice?
-
Why was this trade-off necessary, and what did you learn about your own priorities or the challenges of budgeting from this experience?