How to Create Budget Lesson Plans

One of the many skills that will help prepare students for success in the real world is learning to manage a budget. Since most students do not yet have full-time jobs or carry the burden of paying bills, managing money can be a somewhat abstract concept. Teaching lessons on budgeting is a great way to help them grasp the concepts of money management before they must apply that knowledge. People who know how to manage a budget at an early age will be more likely to make wise financial decisions as they get older.

Things You'll Need

• Microsoft Word
• Budget worksheets

Instructions

How to Create Budget Lesson Plans

1. Write out the purpose of your lesson plans. This should encompass teaching your class how to successfully manage a budget. As you are organizing the document, this section should be at the top.

2. Fill in the objectives. For example, your objective might be to teach about the importance of managing a budget by giving the students a month-long project where they must balance different budgets.

3. Begin with an explanation of the importance of budgeting. Discuss the pros of sticking to a budget and the cons of not doing so. The students will understand this better when it is time for the application, but they still should know the objective that you had in mind.

4. Give the students a simple, week-long assignment. For example, each student is handed a sheet of paper listing a salary and take-home pay (the amount they actually receive after taxes and benefits are deducted). Also on the page is a variety of fixed expenses they must pay, along with optional expenses, such as entertainment, going out to dinner, taking a vacation, savings and investments. The only stipulations: They must pay their bills and cannot spend more than they make.

5. Add another dimension the following week by giving the students a salary increase and allowing them to choose some options, such as a more--or less--expensive car or house. Again, they must pay their bills and not go into debt.

6. The third week, create an unexpected expense for each student. These could range from losing a job to having a child, being in a car accident or making an unexpected household repair.

7. Explain how the budget applies to real life. Inform the students that the unexpected can occur and how saving is important to meet such emergencies. Give the students another shot at managing their budgets.