Lesson Plan
Budget Basics Plan
Students will build a simple 50–30–20 monthly budget on a template using a sample income and two personal expense edits.
This lesson empowers students with essential financial planning skills, crucial for navigating their adult lives and making informed financial decisions.
Audience
12th Grade
Time
30 minutes
Approach
Through direct instruction, guided practice, and an interactive activity.
Materials
Money Moves Slides, 50–30–20 Budget Template, Expense Sort: Needs or Wants, and Exit Ticket: One Change I’ll Make
Prep
Review Materials
10 minutes
- Review the Budget Basics Plan and all linked materials: Money Moves Slides, 50–30–20 Budget Template, Expense Sort: Needs or Wants, and Exit Ticket: One Change I’ll Make.
- Ensure projector/smartboard is ready for the slide deck. Make copies of the 50–30–20 Budget Template and Expense Sort: Needs or Wants worksheet for each student.
Step 1
Warm-Up & Introduction (50-30-20 Rule)
5 minutes
- Use Money Moves Slides to introduce the concept of budgeting and the 50-30-20 rule. Briefly explain 'Needs,' 'Wants,' and 'Savings/Debt Repayment.'
- Ask students: "Why is it important to know where your money goes?" (Brief discussion).
Step 2
Guided Budget Creation
10 minutes
- Distribute the 50–30–20 Budget Template.
- Go through the sample income and fixed expenses on the slide deck/worksheet together.
- Guide students to input the sample income. Instruct them to choose two personal expenses to edit on their template, one 'need' and one 'want,' explaining their choices.
- Circulate to provide support and answer questions.
Step 3
Needs vs. Wants Activity
10 minutes
- Distribute the Expense Sort: Needs or Wants activity.
- Explain the rules: students quickly sort items into 'Needs' or 'Wants' categories.
- Facilitate a brief class discussion about any challenging items and why they were categorized that way.
Step 4
Wrap-Up & Exit Ticket
5 minutes
- Distribute the Exit Ticket: One Change I’ll Make.
- Students reflect on the lesson and write down one change they'll make to their spending habits or one budgeting tip they learned.
- Collect exit tickets as students leave.
Slide Deck
Money Moves: Your First Budget
Welcome to financial planning 101!
Why is managing your money important?
Greet students and introduce the topic of financial planning. Ask a general question about managing money. Transition to the importance of budgeting.
The 50-30-20 Rule: A Simple Budget
A guideline for managing your monthly income:
- 50% Needs: Essential living expenses (housing, groceries, transportation)
- 30% Wants: Non-essential spending (dining out, entertainment, subscriptions)
- 20% Savings & Debt Repayment: Future goals & paying off debt
Introduce the 50-30-20 rule as a simple way to allocate income. Emphasize that it's a guideline, not a strict law. Explain each category clearly.
What are Needs?
Essential expenses you can't live without:
- Rent/Housing
- Groceries
- Utilities (electricity, water, internet)
- Transportation (gas, public transit)
- Healthcare
What are some of YOUR essential needs?
Elaborate on 'Needs' with examples relevant to high schoolers or young adults. Ask students for examples of their own 'needs'.
What are Wants?
Non-essential expenses that improve quality of life:
- Dining out
- Entertainment (movies, concerts, games)
- Subscriptions (streaming, apps)
- New clothes (beyond basic necessity)
- Vacations
What are some things you WANT to spend money on?
Elaborate on 'Wants' with examples. Clearly distinguish them from needs. Ask students for examples of things they 'want' to spend money on.
Why Save & Pay Debt?
Planning for your future and reducing financial burdens:
- Savings: Emergency fund, college tuition, down payment for a car/house, retirement
- Debt Repayment: Student loans, credit card debt (if applicable), car loans
This 20% helps secure your financial future!
Explain the importance of savings and debt repayment. Connect it to future goals like college, a car, or emergencies. Briefly mention credit cards/student loans as common debts for young adults.
Our Sample Income
For our budgeting exercise today, we will use a hypothetical monthly net income (after taxes) of:
$2,500 per month
We'll use this to build our first budget!
Introduce the sample income. This is the starting point for their budget template. Ensure students understand this is a hypothetical number for practice.
Time to Budget!
Now, let's put the 50-30-20 rule into practice!
- Take out your 50–30–20 Budget Template.
- Input our sample income.
- Customize TWO expenses (one need, one want).
- Calculate your budget!
Explain how they will use the template. Guide them through the initial setup, emphasizing that they will personalize two expenses. Refer to the 50–30–20 Budget Template material.
Needs or Wants: Quick Sort!
Let's test our understanding of needs vs. wants.
- Work through the Expense Sort: Needs or Wants activity.
- Think critically: Is it absolutely essential for survival/well-being, or is it something I desire?
Introduce the next activity to reinforce needs vs. wants. Explain that it's a quick exercise to solidify their understanding. Refer to the Expense Sort: Needs or Wants material.
Reflect and Plan Ahead
You've just created your first budget!
On your Exit Ticket: One Change I’ll Make, write down:
- One budget change you might try.
- One budgeting tip you learned today.
Great job taking control of your money moves!
Conclude the lesson by prompting reflection. Explain the purpose of the exit ticket and encourage honest self-assessment. Refer to the Exit Ticket: One Change I’ll Make material.
Worksheet
50–30–20 Budget Template
Name:
Monthly Net Income (After Taxes): $2,500
50% Needs (Essential Expenses)
- Housing/Rent: $800
- Groceries: $350
- Utilities (Electricity, Water, Internet): $150
- Transportation (Gas/Public Transit): $100
- Healthcare/Insurance: $50
- YOUR CUSTOM NEED: (Describe one essential expense you would add or adjust. Explain why it's a 'need'.)
Amount: $
Total Needs: $
30% Wants (Non-Essential Expenses)
- Dining Out/Takeaway: $100
- Entertainment (Movies, Concerts, Games): $75
- Subscriptions (Streaming, Apps): $50
- Shopping (Clothes, Gadgets): $75
- YOUR CUSTOM WANT: (Describe one non-essential expense you would add or adjust. Explain why it's a 'want'.)
Amount: $
Total Wants: $
20% Savings & Debt Repayment
- Emergency Fund: $200
- Long-Term Savings (College, Car, etc.): $150
- Debt Repayment (Student Loan, Credit Card): $150
Total Savings & Debt Repayment: $
Monthly Budget Summary
- Total Monthly Income: $2,500
- Total Needs: $
- Total Wants: $
- Total Savings & Debt Repayment: $
Does your budget balance? (Total Needs + Total Wants + Total Savings & Debt Repayment should be close to your Total Monthly Income)
Activity
Expense Sort: Needs or Wants
Instructions: Read each item below. Decide if it is generally a NEED (essential for survival/well-being) or a WANT (non-essential, improves quality of life). Write it in the correct column.
Expenses to Sort:
- Your monthly cell phone bill
- Tickets to a concert
- Healthy groceries for the week
- A new video game
- Rent for your apartment
- Eating out at a fancy restaurant
- Bus fare for your commute to work
- Subscription to a streaming service
- Car insurance
- Designer brand sneakers
Your Sort:
NEEDS
WANTS
Discussion Question: Were there any items that were tricky to categorize? Why? (e.g., could a 'want' sometimes be a 'need'?)
Cool Down
Exit Ticket: One Change I’ll Make
Name:
Instructions: Reflect on today's lesson about budgeting. Answer the questions below.
-
What is one new thing you learned about budgeting or managing money today?
-
Thinking about your own spending habits, what is one small change you might try to make or one budgeting tip you'd like to implement?
Thank you for exploring Money Moves! Your financial future starts now.