Lesson Plan
Personal Finance Roadmap
Students will be able to identify key personal finance concepts, create a basic budget, and understand the importance of saving and responsible spending for their future financial well-being.
Understanding personal finance is crucial for independent living and career stability. This lesson provides practical knowledge to manage money wisely and make sound financial decisions, setting students up for a secure future.
Audience
High School Students
Time
45-60 minutes
Approach
Interactive discussion, practical budgeting activity, and reflection.
Materials
Money Matters for Your Future (slide-deck), Budgeting Basics (activity), and Financial Future Reflection (journal)
Prep
Review Materials
15 minutes
- Review the Personal Finance Roadmap Lesson Plan, Money Matters for Your Future Slide Deck, Budgeting Basics Activity, and Financial Future Reflection Journal.
- Prepare any necessary printouts for the Budgeting Basics Activity and Financial Future Reflection Journal.
Step 1
Introduction & Hook
5 minutes
- Begin with a discussion prompt: "Imagine your life 10 years from now. What does it look like? What role does money play?" (Slide 1-2)
- Introduce the lesson objectives and its relevance to their future.
Step 2
Money Matters for Your Future Presentation
20 minutes
- Present the Money Matters for Your Future Slide Deck, covering fundamental personal finance concepts like income, expenses, savings, and debt.
- Encourage questions and facilitate brief discussions after each key concept. (Slides 3-8)
Step 3
Budgeting Basics Activity
15 minutes
- Distribute the Budgeting Basics Activity.
- Guide students through creating a simple personal budget based on a hypothetical income and expenses.
- Circulate and provide individualized support and answer questions. (Slides 9-10)
Step 4
Financial Future Reflection
10 minutes
- Distribute the Financial Future Reflection Journal.
- Ask students to reflect on what they learned and how they plan to apply these concepts to their own lives.
- Encourage sharing of reflections (optional). (Slide 11)
Step 5
Wrap-up & Next Steps
5 minutes
- Briefly summarize key takeaways.
- Emphasize the ongoing nature of financial literacy and encourage continued learning.
- Answer any remaining questions. (Slide 12)
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Slide Deck
Your Financial Future?
Imagine your life 10 years from now...
- What does it look like?
- Where do you live?
- What kind of work are you doing?
- What role does money play in making that happen?
Welcome students and get them thinking about their future. This is a personal finance lesson, so it's important to make it relatable from the start.
Why Does This Matter to YOU?
Today, we'll learn to:
- Identify key personal finance concepts.
- Create a basic budget.
- Understand the power of saving and smart spending.
This is about building YOUR secure future!
Briefly go over the objectives so students know what they will be learning and why it's important to them.
Where Does Money Come From?
Income
- Definition: Money you earn or receive.
- Examples:
- Salary from a job
- Hourly wages
- Tips
- Allowance
- Gifts
Introduce the concept of income and different ways people earn money.
Where Does Money Go?
Expenses
- Definition: Money you spend on goods and services.
- Types of Expenses:
- Needs: Essentials like housing, food, transportation, healthcare.
- Wants: Non-essentials like entertainment, new gadgets, dining out.
Explain expenses and categorize them to help students think about where their money goes.
Taking Control: Budgeting
What is a Budget?
- A plan for how you will spend and save your money.
- It helps you see:
- How much money you have coming in (income).
- How much money you have going out (expenses).
- Why budget? To reach your financial goals!
Introduce the idea of budgeting as a tool for managing money.
Building Your Nest Egg: Savings
Savings
- Definition: Money you set aside for future use.
- Why Save?
- Emergencies: Unexpected costs (car repair, medical bills).
- Goals: Big purchases (college, car, house).
- Future Security: Retirement.
- Pay Yourself First! Make saving a priority.
Explain the importance of saving and different types of savings.
Borrowing Smartly: Understanding Debt
Debt
- Definition: Money you owe to someone else.
- Examples: Student loans, car loans, credit card balances.
- Good Debt vs. Bad Debt?
- Good: Investments that can increase wealth (e.g., education, house).
- Bad: High-interest debt on depreciating assets (e.g., credit card debt on clothes).
- Be careful! Debt can grow quickly if not managed.
Discuss debt, good vs. bad debt, and the importance of managing it responsibly.
Key Takeaways So Far...
- Income: Money in.
- Expenses: Money out.
- Budget: Your money map.
- Savings: Money for your future.
- Debt: Money owed.
Now, let's put this into practice!
Conclude the core concepts and transition to the activity.
Activity: Budgeting Basics!
It's time to build your own budget!
Instructions:
- You will receive a Budgeting Basics Activity worksheet.
- Follow the prompts to create a simple budget based on a hypothetical scenario.
- Think about needs vs. wants.
- Don't forget to include savings!
Ask questions if you get stuck!
Introduce the budgeting activity. Give clear instructions and remind them they can ask for help. Refer to the Budgeting Basics Activity material.
Work Time!
Let's Get Budgeting!
Take the next 15 minutes to work on your Budgeting Basics Activity.
I'll be around to help if you have any questions!
Give students time to work on their budgets. Offer assistance as needed.
Reflect & Plan: Your Financial Journey
Now that you've explored budgeting, let's think about your personal journey.
You'll be completing a Financial Future Reflection Journal.
Consider:
- What did you learn today?
- How will you apply this to your life?
- What are your next steps?
Transition to the reflection journal. Emphasize personal connection to the topic.
Your Smart Money Future!
Remember:
- Financial literacy is a skill you build over time.
- Small, smart money habits today lead to big results tomorrow.
- You have the power to shape your financial future!
Keep learning, keep planning, and keep growing!
Summarize the lesson and encourage continued financial learning.
Activity
Budgeting Basics Activity
Scenario: You are a high school student working a part-time job. You earn $400 per month after taxes. You also receive an allowance of $50 per month from your family.
Your goal is to create a monthly budget to manage your money effectively. Remember to consider your needs (essential) and wants (non-essential) and try to save for a future goal!
Section 1: Income
List all sources of income and the amount you expect to receive each month.
- Source 1: Part-time Job Income
- Source 2: Allowance
- Total Monthly Income:
Section 2: Expenses
List your estimated monthly expenses. Categorize them as 'Needs' or 'Wants'.
Needs (Essential Expenses):
- Transportation (Bus fare, gas money): $40
- School Supplies: $20
- Contribution to Household (e.g., helping with groceries): $30
- Add any other needs you can think of:
Wants (Non-Essential Expenses):
- Entertainment (Movies, games, streaming): $50
- Dining Out/Snacks: $40
- New Clothes/Accessories: $30
- Add any other wants you can think of:
Total Monthly Needs:
Total Monthly Wants:
Total Monthly Expenses (Needs + Wants):
Section 3: Savings & Goals
How much money do you want to save each month? What are you saving for?
- Amount to Save Monthly:
- What are you saving for? (e.g., college, new phone, car, emergency fund):
Section 4: Balancing Your Budget
Now, let's see if your budget works!
- Total Monthly Income:
- Total Monthly Expenses:
- Amount to Save Monthly:
Income - Expenses - Savings = Remaining Money
- Is the
Journal
Financial Future Reflection Journal
Take some time to reflect on what you've learned about personal finance today. Your thoughts and plans are important for building a strong financial future!
Prompt 1: New Discoveries
What was the most surprising or new thing you learned about personal finance today? Why did it stand out to you?
Prompt 2: My Money Habits
Think about your current relationship with money. What is one positive money habit you already have or would like to start? What is one area where you think you could improve?
Prompt 3: Setting a Goal
Based on what you learned, what is one short-term financial goal (something you want to achieve in the next 1-6 months) and one long-term financial goal (something you want to achieve in 1-5 years) you have for yourself? How might you start working towards them?
Short-Term Goal:
How I'll start:
Long-Term Goal:
How I'll start:
Prompt 4: Taking Action
What is one concrete step you can take this week to apply what you've learned about personal finance? (e.g., track your spending for a day, talk to a parent about budgeting, research a savings account).