Financial Futures Warm Up: What's Your Money Dream?

Welcome, everyone! Let's get our financial thinking caps on.

Think about it: If you could magically achieve one financial goal today, what would it be? (For example, saving for a new item, going on a trip, paying off a bill, or feeling secure.)

Share with a partner (or quietly reflect):
1. What is one financial dream or goal you have?
2. What is one small step you think you could take towards that goal?

Teacher Script: Your Money, Your Power!

Warm Up: Financial Futures (10 minutes)

(Teacher says while students are settling in and working on the Financial Futures Warm Up prompt displayed)

"Good morning/afternoon, everyone! I hope you all had a chance to think about our warm-up question: What's one financial dream or goal you have? And what's one small step you think you could take towards it?"

"Take a moment to share your ideas with a partner next to you. Don't worry if it's a big dream or a small one, every financial goal starts somewhere! We'll just be sharing in pairs, so no need to feel shy."

(After a few minutes, bring the class back together)

"Alright, let's bring it back together. I hope those conversations sparked some exciting ideas. It's really powerful to think about what we want for ourselves financially, isn't it? Our dreams, big or small, are what motivate us."

Introduction & Objectives (10 minutes)

(Transition to Your Money, Your Power! Slide Deck - Slide 1: Your Money, Your Power!)

"Today, we're going to talk about something incredibly important for all of us: managing our personal finances. The title of our lesson is Your Money, Your Power! because when you understand and manage your money, you gain a lot of power and control over your life and your future."

"Think about it – having control over your money means you can make choices that are best for you. It means you can work towards your dreams, like the ones you just shared in our warm-up."

(Transition to Your Money, Your Power! Slide Deck - Slide 2: Today's Mission: Be a Money Master!)

"So, what's our mission today? We're going to become 'Money Masters'! By the end of this lesson, you will be able to:

• Understand where your money comes from (we call this income).
• Know where your money goes (these are your expenses).
• Create a simple budget – a plan for your money.
• Set smart saving goals.
• And ultimately, feel more confident and in control of your financial future!"

"These are practical skills that will help you in your everyday life, and they are important steps towards achieving independence and a secure future."

Understanding Your Money (Reading & Discussion) (25 minutes)

(Transition to Your Money, Your Power! Slide Deck - Slide 3: Income vs. Expenses: The Basics)

"Before we dive deeper, let's make sure we understand some basic words. Look at the slide: Income and Expenses.

"Can anyone tell me in their own words what income might be? Where does money come from for you?"

(Allow 1-2 student responses, provide examples if needed: paychecks, benefits, gifts, etc.)

"Exactly! Income is all the money you receive from different sources. Now, what about expenses? Where does your money go? What do you spend money on?"

(Allow 1-2 student responses, provide examples if needed: rent, food, bus fare, clothes, going to the movies, etc.)

"Great examples! Expenses are all the things you spend your money on. To truly manage your money, you need to know both what's coming in and what's going out."

"Now, I'm going to hand out a reading called Understanding Your Money: A Simple Guide Reading. I'd like you to read through it. You can read it quietly to yourselves, or if you prefer, you can read it in small groups of two or three."

(Distribute the reading)

"Take about 10-15 minutes to read the guide. When you're done, we'll have a short discussion using some questions from our My Money Goals Discussion Guide to talk about what you read."

(After 10-15 minutes, bring the class back for discussion)

"Okay, everyone, let's chat about what you read. Thinking about the guide, and our discussion on income and expenses:

• What's one thing you learned about income that you hadn't thought about before?
• What's one expense that surprised you, either your own or one mentioned in the reading?
• Why do you think it's important to keep track of both your income and your expenses?"

(Facilitate discussion, encourage participation and provide gentle guidance.)

Budgeting Basics (Worksheet & Activity) (30 minutes)

(Transition to Your Money, Your Power! Slide Deck - Slide 4: Budgeting: Your Spending Plan)

"Now that we know about income and expenses, let's put that knowledge into action with a very important tool: a budget!"

"Look at the slide. A budget is simply a plan for how you're going to use your money. It's like a roadmap for your finances. It helps you see where your money goes and make smart choices. It can also help you avoid running out of money and reduce stress."

"Has anyone here ever tried to budget before? What was your experience like?"

(Allow a few responses. Validate all experiences.)

(Transition to Your Money, Your Power! Slide Deck - Slide 5: Types of Expenses)

"When we budget, it's helpful to think about different kinds of expenses. We have fixed expenses – these are costs that usually stay the same every month. Can you think of any examples?"

(Prompt for examples: rent, loan payments, insurance premiums.)

"Exactly. Then we have variable expenses. These are costs that can change from month to month. What might be some examples of those?"

(Prompt for examples: groceries, electricity bill, clothes, entertainment.)

"Knowing the difference helps us plan better!"

(Transition to Your Money, Your Power! Slide Deck - Slide 6: Creating Your Budget in 3 Steps)

"Okay, it's time to try creating a budget! I'm going to hand out the Budgeting Basics Worksheet. We'll go through the three steps together."

(Distribute the worksheet)

"Step 1: List Your Income. On your worksheet, write down all the money you expect to receive this month. If you have a regular paycheck or benefits, write those amounts. If it varies, write your best estimate."

"Step 2: List Your Expenses. Now, think about all the things you need to spend money on. Try to list both your fixed and your variable expenses. Don't forget things like food, transportation, and any fun activities you like to do. Be honest with yourselves here; this is for your benefit."

"Step 3: Compare. Look at your total income and your total expenses. Is your income more than your expenses? Is it about the same? Is it less?"

"If your expenses are more than your income, don't worry! This worksheet is a tool to help you see where you can make adjustments. Maybe you can find a way to cut back on some variable expenses, or look for ways to increase your income. This is a personal plan, and it's okay to adjust it."

(Circulate and assist students as they work on the worksheet for about 15-20 minutes.)

"Great job working on your budgets! Remember, a budget is a living document – it can change. The important thing is that you have a plan."

"Now, let's practice tracking expenses with our Expense Tracker Activity. This is a simple way to keep an eye on where your money is actually going throughout the month. This helps you compare your budget plan to your actual spending."

(Explain the Expense Tracker Activity, perhaps by showing a simple example on the board or in the slide deck if a slide was added for it. Guide students to start practicing with hypothetical scenarios or their own real-life examples for a few minutes.)

Saving Goals & Smart Choices (20 minutes)

(Transition to Your Money, Your Power! Slide Deck - Slide 7: Saving Goals: Dream Big!)

"We've talked about income and expenses, and how to create a budget. Now, let's talk about something exciting: saving money!"

"Why do we save money? Take a look at the slide. We might save for big purchases, for unexpected emergencies, for fun things, or just for future security."

"What are some things you might want to save for? Think back to our warm-up if you like."

(Allow students to share. Use prompts from the My Money Goals Discussion Guide as needed to deepen the conversation.)

(Transition to Your Money, Your Power! Slide Deck - Slide 8: Set SMART Saving Goals)

"To make our saving dreams come true, it helps to set SMART goals. Has anyone heard of SMART goals before?"

(Explain SMART acronym clearly, giving examples for each letter relevant to saving.)

"Specific: Instead of 'save money,' say 'save $500 for a new tablet.'
Measurable: You know exactly how much you need.
Achievable: Is saving $500 in 3 months realistic for you right now?
Relevant: Is this tablet important to you? Does it align with your values?
Time-bound: 'By December 1st.' This gives you a deadline."

"Setting SMART goals makes your saving journey much clearer and easier to follow."

(Transition to Your Money, Your Power! Slide Deck - Slide 9: Tips for Smart Saving)

"Here are some practical tips to help you save. One of my favorites is 'Pay Yourself First.' What do you think that means?"

(Allow responses.)

"It means that as soon as you get your income, you put a little bit directly into your savings, before you start spending on other things. Even a small amount adds up over time."

"Other tips include cutting back on small, unnecessary expenses, looking for deals, and continuing to track your spending. What other tips do you have for saving money?"

(Encourage students to share their own saving strategies.)

Quiz: Money Matters (10 minutes)

"Excellent work, everyone! We've covered a lot about income, expenses, budgeting, and saving. Now, let's see what we've learned with a short quiz. I'm handing out the Money Matters Quiz. Please complete it individually. Do your best, and don't worry if you don't know every answer. This helps me see what we might need to review."

(Distribute the quiz. Circulate to ensure students understand the instructions, but do not provide answers.)

Review & Q&A (5 minutes)

"Alright, let's quickly go over the answers to the quiz using the Answer Key: Money Matters Quiz & Financial Freedom Test. This is a chance to learn from any mistakes and solidify your understanding."

(Go over the quiz answers as a class, clarifying any misconceptions. Answer any student questions.)

"Remember, practice makes perfect when it comes to managing money. Don't be afraid to keep trying these strategies."

Cool Down: My Financial Superpower (10 minutes)

"To wrap up our lesson today, I'd like you to complete this Cool Down: My Financial Superpower activity. On your paper, I want you to reflect on what you've learned today and identify one 'financial superpower' you feel you've gained or strengthened."

"It could be 'I can create a basic budget,' or 'I can identify fixed expenses,' or 'I know how to set a SMART saving goal.' Write down your superpower and a sentence or two about why it's important to you."

(Collect the cool-down papers as students leave, or at the end of class.)

"Thank you all for your active participation today! Keep practicing these skills, and remember: Your Money, Your Power! You've got this!"

Understanding Your Money: A Simple Guide

Managing your money might seem tricky, but it's really about knowing two main things: where your money comes from, and where it goes. Once you understand these, you're on your way to taking charge of your financial life!

Where Does Your Money Come From? (Income)

Income is all the money you receive. Think of it as the money that comes into your pocket or bank account. This can come from many different places. Some common sources of income include:

• Paycheck from a Job: If you work, this is the money your employer pays you.
• Government Benefits: This could include disability benefits, social security, or other support programs.
• Child Support or Alimony: Money received for the support of children or from a former spouse.
• Gifts: Money given to you by family or friends.
• Sales: Money you make from selling things you no longer need, like clothes or crafts.

It's important to know all your sources of income and how much you expect to receive each month. This is the foundation of your financial plan.

Where Does Your Money Go? (Expenses)

Expenses are all the things you spend your money on. These are the payments that go out of your pocket or bank account. Expenses can be big or small, and they can be for things you need or things you want. Here are some common types of expenses:

Needs:

• Housing: Rent or mortgage payments, utilities (like electricity, water, heat).
• Food: Groceries, meals.
• Transportation: Bus fare, gas for a car, car payments, car insurance.
• Healthcare: Doctor visits, medication, health insurance.
• Personal Care: Toiletries, hygiene products.

Wants:

• Entertainment: Movies, concerts, streaming services.
• Dining Out: Eating at restaurants or getting takeout.
• Shopping: New clothes, shoes, accessories (beyond what's essential).
• Hobbies: Supplies for crafts, sports equipment, classes.
• Travel: Vacations, trips.

Fixed vs. Variable Expenses:

It's also helpful to think about whether your expenses are fixed or variable:

• Fixed Expenses: These are expenses that usually stay the same amount each month. Examples often include rent, car payments, and insurance premiums. You know exactly how much to expect.
• Variable Expenses: These are expenses that can change from month to month. Examples include groceries (you might spend more or less depending on what you buy), utility bills (like electricity, which can be higher in summer or winter), and entertainment. You have more control over these, as you can often choose to spend more or less.

Knowing your income and understanding your expenses is the first big step towards managing your money well. It helps you see the whole picture and where you can make choices to best suit your financial goals.

Budgeting Basics: Your Monthly Money Plan

This worksheet will help you create a simple plan for your money each month. It's like a roadmap to help you understand where your money comes from and where it goes.

Part 1: Your Monthly Income (Money Coming In)

Think about all the money you expect to receive this month. List each source and the amount.

1. Source 1: __________________________________ Amount: $_________________

2. Source 2: __________________________________ Amount: $_________________

3. Source 3: __________________________________ Amount: $_________________

Total Monthly Income: $_________________

Part 2: Your Monthly Expenses (Money Going Out)

Think about everything you spend money on each month. Try to list both your fixed (stays the same) and variable (changes) expenses. Estimate if you don't know the exact amount.

Fixed Expenses (usually the same each month)

1. Rent/Housing: $_________________

2. Utilities (e.g., Internet, Phone): $_________________

3. Insurance (e.g., Health, Car): $_________________

4. Loan Payments (e.g., Car, Student): $_________________

5. Other Fixed Expense: _________________________ Amount: $_________________
   
   
   
   

Variable Expenses (can change each month)

1. Groceries/Food: $_________________

2. Transportation (e.g., Bus fare, Gas): $_________________

3. Personal Care (e.g., Toiletries, Haircuts): $_________________

4. Entertainment/Fun: $_________________

5. Clothing: $_________________

6. Other Variable Expense: _________________________ Amount: $_________________
   
   
   
   
   
   
   
   
   

Total Monthly Expenses: $_________________

Part 3: Income vs. Expenses (Your Financial Picture)

Now let's compare your income and your expenses.

Total Monthly Income: $_________________

Minus

Total Monthly Expenses: $_________________

Equals

Money Left Over (or Needed): $_________________

Reflect and Adjust:

• Is your income more than your expenses? Great! You have money left to save or spend on other things.
• Are your expenses more than your income? That's okay! This helps you see where you might need to make some changes. What is one expense you could try to reduce or one way you could try to increase your income?

My plan for adjusting my budget (if needed):

My Money Goals: Discussion Guide

This guide provides prompts for a class discussion about income, expenses, and saving goals. Encourage respectful sharing and active listening.

Part 1: Understanding Income & Expenses (After Reading)

1. What is one new idea you learned about different sources of income from the reading or our discussion today?
   
   
   
2. Can you share an example of a fixed expense (something that stays about the same each month)? Why is it called "fixed"?
   
   
   
3. What about a variable expense (something that changes)? What makes it variable, and how might you have more control over it?
   
   
   
4. Why do you think it's important for you to know the difference between your income and your expenses? How can this knowledge help you?

Part 2: Budgeting & Smart Choices (After Budgeting Basics Worksheet)

1. What was one thing you found easy or clear when working on your budget worksheet?
   
   
   
2. What was one part of budgeting that felt challenging, or that you'd like more help with?
   
   
   
3. Why is it helpful to track your expenses after you make a budget? What can you learn from doing this?
   
   
   
4. How can having a budget help you feel more in control and less stressed about your money?
   
   
   

Part 3: Saving for Your Dreams (After Saving Goals Discussion)

1. What is one thing you would love to save money for in the future (big or small)?
   
   
   
2. Why is setting a SMART goal (Specific, Measurable, Achievable, Relevant, Time-bound) important when you want to save money?
   
   
   
3. Which saving tip (like "Pay Yourself First" or "Cut Back on Small Expenses") do you think you could try this week? Why that one?
   
   
   
4. How does having savings make you feel about your future and your independence?
   
   
   

Expense Tracker Activity: Where Did My Money Go?

Keeping track of your spending is a powerful way to understand your money habits. Use this tracker for one week to write down everything you spend money on. Don't judge your spending, just observe it!

Instructions:

1. For seven days, write down every single time you spend money, no matter how small the amount.
2. Note the date, what you bought, and how much it cost.
3. At the end of the week, look at your tracker. What did you notice?

My Weekly Spending Tracker

Reflection Questions:

1. What was the biggest surprise on your spending tracker this week?
   
   
   
   
2. Did you notice any patterns in your spending (e.g., certain days, certain types of items)?
   
   
   
   
3. Is there anything you spent money on that you wish you hadn't, or that you could cut back on next week?
   
   
   
   
4. How does tracking your expenses help you with your budget?
   
   
   
   

Answer Key: Money Matters Quiz

Quiz Questions & Answers

1. What is income?

   • Correct Answer: Money you receive from a job or benefits
   • Thought Process: Income is the money that comes into your possession. This usually comes from working, government support, or other sources where money is given to you.

2. Which of these is an example of a fixed expense?

   • Correct Answer: Rent
   • Thought Process: Fixed expenses are typically the same amount each month. Rent is usually a consistent payment, unlike groceries or movie tickets which can vary.

3. What is a budget?

   • Correct Answer: A plan for how you will spend and save your money
   • Thought Process: A budget is a strategic tool to manage your finances, outlining how income will be allocated to expenses and savings.

4. Name one reason why saving money is important.

   • Correct Answer: For big purchases, emergencies, fun things, and future security. (Any one of these is acceptable.)
   • Thought Process: Saving provides security for unexpected events, allows for the purchase of larger items without debt, funds recreational activities, and contributes to long-term financial stability.

Answer Key: Financial Freedom Test

Test Questions & Answers

1. Which of the following is an example of income?

   • Correct Answer: Receiving your paycheck from work
   • Thought Process: Income is money coming in. A paycheck is a direct form of earned income.

2. What does it mean to have a variable expense?

   • Correct Answer: The amount you pay changes from month to month
   • Thought Process: Variable expenses fluctuate based on usage or choice, making their monthly cost inconsistent.

3. What is the main purpose of creating a budget?

   • Correct Answer: To plan how you will spend and save your money
   • Thought Process: The core function of a budget is to provide a structured plan for managing incoming and outgoing money, enabling informed financial decisions.

4. Which of these is a SMART goal for saving money?

   • Correct Answer: I will save $200 for a new pair of shoes by next month
   • Thought Process: This goal is Specific ($200, new pair of shoes), Measurable ($200), Achievable (assuming $200 in a month is realistic for the individual), Relevant (new shoes are important to the person), and Time-bound (by next month). The other options are vague.

5. Explain in your own words what "Pay Yourself First" means when it comes to saving money.

   • Correct Answer: It means to put money into your savings account as soon as you receive your income, before you pay for anything else. This makes sure you prioritize your savings goal.
   • Thought Process: "Pay Yourself First" is a savings strategy that emphasizes making saving a priority by allocating funds to it immediately upon receiving income, rather than saving what's left over after expenses.

Cool Down: My Financial Superpower

Now that we've explored the world of personal finance, let's take a moment to reflect.

Instructions:

1. Think about everything we learned today: income, expenses, budgeting, and saving.
2. Identify one new financial skill or piece of knowledge that you feel empowered by. This is your