Lesson Plan
Budgeting Basics Plan
Over three 45-minute sessions, students will learn to set a budget, practice making purchases, calculate change, compare prices, and reflect on spending to build foundational financial literacy.
Understanding budgeting, making smart spending decisions, and handling money accurately empowers students toward financial independence and real-world readiness.
Audience
7th Grade Group
Time
3 sessions, 45 minutes each
Approach
Hands-on simulations and guided role-plays.
Prep
Prepare Materials
20 minutes
- Review the Shopping Simulation Overview slide deck
- Familiarize yourself with the Storefront Role-Play rules and role scripts
- Print enough copies of the Price Comparison Chart for each student
- Prepare reflection prompts from the Spending Reflection handout
Step 1
Session 1: Budgeting Basics & Shopping Simulation
45 minutes
- Introduce key budgeting terms and goals using the Shopping Simulation Overview
- Model how to set a spending limit and choose items from a sample catalog
- In pairs, students draft a shopping list that stays within a set budget
- Run the shopping simulation: each pair “purchases” items and tracks spending
- Quick share: each group reports their total spent and remaining budget
Step 2
Session 2: Calculating Change & Role-Play
45 minutes
- Recap Session 1: discuss challenges staying under budget
- Demonstrate step-by-step change calculations with sample transactions
- Students practice calculating change problems in small groups
- Facilitate the Storefront Role-Play: students alternate cashier and customer roles to practice real-time transactions
- Provide immediate feedback and correct common errors
Step 3
Session 3: Price Comparison & Reflection
45 minutes
- Introduce strategies for comparing prices (unit price, discounts)
- Students complete the Price Comparison Chart using prices from multiple “stores”
- Small-group discussion: which option offers the best value and why
- Distribute the Spending Reflection and guide students to reflect on their budgeting and spending choices
- Closing assessment: each student shares one strategy they’ll apply in future purchases
Slide Deck
Shopping Simulation Overview
In today’s session, you will:
- Learn key shopping and budgeting terms
- See an example of setting and tracking a budget
- Practice “buying” items and calculating totals
Welcome students and introduce the day’s activity. Emphasize how practicing real-world shopping skills prepares them for everyday decisions.
Session Objectives
- Define budgeting and essential shopping terms
- Set a spending limit and track purchases
- Practice making transactions and calculating totals
Read each objective aloud and clarify any questions. Ensure students understand the goals before moving on.
Key Terms
• Budget – Money you plan to spend
• Purchase – An item you buy
• Receipt – Proof of purchase with prices
• Remaining Balance – Money left after buying items
• Change – Money returned when you pay more than the cost
Explain each term with simple examples (e.g., “Budget: the amount of money you plan to spend”). Ask for student definitions to check understanding.
Sample Budget Example
Starting Budget: $20.00
- Notebook – $4.50 → Balance: $15.50
- Snack – $2.00 → Balance: $13.50
- Pencil Set – $3.25 → Balance: $10.25
Walk through the sample: start with $20, subtract each item’s cost, show balance after each purchase.
Simulation Steps
- In pairs, receive a $20 budget card
- Choose items from the catalog (prices listed)
- Record each purchase and subtract cost
- Total your spending and remaining balance
- Turn in your itemized list at the end
Go step-by-step and display this slide throughout the activity. Encourage students to check off each step as they proceed.
Tips & Reminders
• Keep your math work neat for easy checking
• Ask your partner to verify totals
• Use scratch paper for subtraction practice
• Stay within your budget—no borrowing extra money
Highlight helpful strategies: double-check subtraction, ask questions, collaborate with your partner.
Game
Storefront Role-Play
Get ready to put your budgeting and calculation skills into action! In this interactive game, students will take on the roles of cashier and customer to practice real-world transactions, from totaling costs to giving correct change.
Materials Needed
- Play money (bills & coins)
- Item cards or price tags (with clear prices)
- Receipt templates (simple purchase form)
- Calculators or cash register mats
- Scenario cards (see examples below)
Preparation (15 minutes)
- Set up 4–6 checkout stations with play money, item cards, and receipt sheets.
- Shuffle and place scenario cards face-down in a “customer envelope.”
- Pair students and assign each pair a station number.
Roles & Responsibilities
Customer:
- Draw a scenario card and select items accordingly.
- Hand money to the cashier.
- Check the receipt and count the change received.
Cashier:
- Greet the customer politely.
- List items and calculate the total cost.
- Accept payment and give correct change using play money.
- Fill out the receipt template clearly.
How to Play
- Review polite phrases (e.g., “Hello! That will be $4.25.” / “Thank you, have a great day!”).
- Demonstrate one full transaction with a volunteer.
- In pairs, the customer draws a scenario card and gathers the items on their card.
- The cashier calculates the total, accepts payment, and hands back change and receipt.
- After each transaction, partners switch roles. Aim for at least 3 transactions per student.
- Teacher circulates, offering feedback and correcting any miscalculations.
Sample Scenario Cards
- You have $5.00. Buy a snack ($1.50) and a drink ($1.25). How much do you pay? What is your change?
- You want a notebook ($3.75) and a pencil ($0.50). You pay with a $5 bill. What change should you get?
- You buy two candy bars at $0.75 each and a soda at $1.25. Pay with $5.00. Calculate and return the change.
Debrief & Reflection
- Ask: What strategies helped you calculate change quickly?
- Discuss common errors and how to double-check math.
- Encourage students to share one tip they’d use in a real store.
Worksheet
Price Comparison Chart Worksheet
Use the table below to record prices for each item at three different stores. Then calculate the unit prices and determine the best value.
| Item | Store A Price | Store B Price | Store C Price | Unit Price A | Unit Price B | Unit Price C | Best Value (✓) |
|---|---|---|---|---|---|---|---|
| Granola Bars (6-pack) | $ ______ | $ ______ | $ ______ | ______/pack | ______/pack | ______/pack | ______ |
| Bottled Water (12-pack) | $ ______ | $ ______ | $ ______ | ______/pack | ______/pack | ______/pack | ______ |
| Apples (per lb) | $ ______ | $ ______ | $ ______ | $ ______/lb | $ ______/lb | $ ______/lb | ______ |
| Chocolate Bars (4-pack) | $ ______ | $ ______ | $ ______ | ______/pack | ______/pack | ______/pack | ______ |
| Pasta (16 oz box) | $ ______ | $ ______ | $ ______ | ______/box | ______/box | ______/box | ______ |
Reflection Questions
- Which store offered the lowest price overall for most items? Explain your answer.
- If you needed to purchase two of each item, which store would save you the most money? Show your reasoning.
- Describe one strategy you used to compare prices and decide on the best value.
- How might sales tax or coupons affect your choice of store? Provide an example.
- Think about a time you bought something—how could you apply today’s price comparison skills to that purchase?
When you’re finished, compare your answers in small groups and discuss any differences in your calculations.
Cool Down
Spending Reflection
Use the prompts below to think about what you learned during the Money Moves module. Write your responses in the space provided.
- What was the most challenging part of setting and sticking to a budget? How did you overcome that challenge?
- Describe one strategy you used to calculate change quickly and accurately. How might you use this strategy outside of class?
- When comparing prices across different stores, what tip helped you find the best value? Explain how you applied it.
- Think about a real purchase you or your family will make soon. How will you use budgeting, change calculation, or price comparison skills to make a smarter choice?
- What is one personal money-management goal you will set for yourself after completing this module? How will you track your progress?
Share & Discuss: Pair up with a classmate and share one reflection you feel was most impactful. Discuss any new ideas you gained from their response.