Financial Literacy Budgeting Lesson

TEKS: (10D)describe how to allocate a weekly allowance among spending; saving, including for college; and sharing;
Objectives:
(Skillsand information thatwill be learned.) / Students will:
1. Identify expenses andsources of income (e.g.
earnings,gifts).
2. Develop a budgetthathasspending, savings, and charitablegoals.
3. Distinguish between short and long term savings goals. / Vocabulary:
1. Budget
2. Income
3.Expenses
4.Goal
5. Short term goal
6. Long term goal
Information: / Abudgetis asavings planora record ofactual and
estimatedincome and expenses over a set periodof time. Estimatedincomeis money that you anticipate earning or receivingforchorecompletionor special occasions.Budgets containfinancial goals.Some goalsare short‐term or long‐term whileothers can
be intermediategoals.
ExamplesofSavingsGoals:
Short‐term–Saving$10 by the16thof next month to buy grandma abirthday gift.
Intermediate‐term –Save$3 a week for thenext three months to buy anew video game.
Long‐term–Save$4 per weekfor thenext six months to buy a new bike.
ENGAGE: /
  1. Show video Cha-Ching: When You Get Money
  2. Ask students to listen for three things that you can do with earned money (spend, save, share).
  3. Ask students:
  • How might they earn money?
  • Why might they save money?
  • Why or to whom might they share/donate money?

EXPLORE: / 1.Havestudentsdetermine the monthly total of
their allowance.
2. Askstudentsto addtheirbirthdaymoneyand other money totals togetherto gettheir spending total beforemaking a savingsdeposit.
3. Examine thesavings componentanddiscuss theimportanceofsavingfor futuregoals and activities.
4) Havestudentssubtracttheirsavings total from the subtotalaboveto learn the amount of moneythey haveto spend duringthe activity. Studentsshouldputthefinal dollar amount ontheMoney to Spendline.
5. Basedupontheir needs andwants,students should circleitems onthe handoutandtotal upthe dollar amount spent. They cannot spendmore than the dollar amountdiscussedabove. / MaterialsNeeded:
1 Going Shopping Sheet
2. MonthlyBudgetfor Kids
worksheet.
EXPLAIN: / 6.Withapartner(s)orthe entire class,havestudents share thefollowing: amount of moneytheyhad to spend,howtheymadetheir spending choices,and the dollar amountthat they hadleft(if any).
7. Explaintostudents that the remaining spending money theyhave wouldrollover to thenext month and be listed as “other money”, iftheywereto repeat the activity again.
8.Reiteratethe importanceofplanningfor the future,i.e. savings,andtheability toeffectivelymanage money,i.e. budget.Askstudents todetermine how muchmoneytheywould have insavings, 12months,andfinally in 8 years (when they are ready to graduate/go to college).
9. Students should explain how they determined thedollar amounttodonate and the organization they wishto support. / MaterialsNeeded:
My Budgeting Decisions
ELABORATE: / 10. Havestudentsturntheir budgetintoabar graph, showing how much money they spent on savings, spending, sharing.
EVALUATE: / Today in class I learned______/ Post-Its