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Personal Finance 101: Budgeting Basics

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Nicole Camp

Tier 1

Lesson Plan

Personal Finance 101: Budgeting Basics

Understand budgeting, saving, spending

This lesson introduces students to essential financial concepts such as budgeting, saving, and spending wisely. Through interactive activities, students will learn to make informed financial decisions, which are crucial skills for their future independence and financial well-being.

Audience

12th Grade Students

Time

1 hour 30 mins

Approach

Understand budgeting, saving, spending

Materials

Projector, Whiteboard and markers, Budgeting Worksheet, Discussion Questions, and Exit Ticket Quiz

Step 1

Introduction to Personal Finance

10 mins

  • Begin with a brief discussion on what personal finance means.
  • Ask students to share what they know about budgeting, saving, and spending.
  • Explain the importance of financial literacy in everyday life.

Step 2

Budgeting Basics Presentation

20 mins

  • Use a projector to present key concepts of budgeting.
  • Discuss the components of a budget: income, expenses, savings.
  • Provide examples of how to create a simple budget.

Step 3

Interactive Budgeting Activity

30 mins

  • Distribute the Budgeting Worksheet to each student.
  • Guide students through creating a mock budget based on a given scenario.
  • Encourage students to consider needs vs. wants in their budgeting decisions.

Step 4

Group Discussion on Saving and Spending

20 mins

  • Use the Discussion Questions to facilitate a conversation about saving strategies and spending wisely.
  • Encourage students to share personal experiences or family practices related to saving and spending.

Step 5

Closure and Exit Ticket

10 mins

  • Summarize the key points covered in the lesson.
  • Distribute the Exit Ticket Quiz to assess understanding.
  • Collect quizzes and provide feedback on any common misconceptions.
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Worksheet

Budgeting Worksheet

This worksheet helps students practice creating a budget based on a given scenario. It includes sections for income, expenses, and savings.

List your total monthly income based on the scenario provided.

Consider all sources of income.







Categorize your monthly expenses into fixed and variable costs.

Fixed costs remain the same each month, while variable costs can change.







Calculate your total savings after accounting for all expenses.

Subtract total expenses from total income.







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Discussion

Discussion Questions

These questions are designed to prompt students to think critically about saving and spending habits.

What are some effective strategies for saving money?

Discuss the importance of setting savings goals and creating a savings plan.







How can you differentiate between needs and wants when budgeting?

Encourage students to think about prioritizing essential expenses over discretionary spending.







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Quiz

Exit Ticket Quiz

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