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Lesson Plan Industry Sector
Finance & Business

Lesson Plan Originally Created By: Judy St.Denis

Financial Planning NEFE Unit 2 - Lesson 5 - How Do I Spend My Money

Part of Unit: Personal Finance

Lesson Plan Overview / Details

The second step in personal financial fitness is to determine where all your money goes.  This lesson helps students to assess their wants and needs, and to find out if it is possible to gain some control of their money. Students will be using information from Unit 1 to complete this lesson.

 

To the Instructor

The National Endowment for Financial Education (NEFE) has a student guide workbook as well as an Instructors Manual (IM) that you need to download which is free of charge.  Go to http://hsfpp.nefe.org/ for this free program, then click on Instructor at the top of the page and register to use this Financial Planning Program for high schools. You can also contact them and request free workbooks for your students to use and take home as well. You will have access to the IM which is online.  There are chapter assessments at your fingertips for each unit. The NEFE website has videos, PowerPoint presentations, copy of the entire IM and student workbooks, and much more. This unit will take approximately 4 class periods to complete depending on class schedules and added activities you might use for student retention.   

Lesson Time

Time
50 Minutes

Objectives and Goals

  • Students will examine their spending habits
  • Students will know the benefits of having a spending plan, or budget
  • Students will identify various sources of income
  • Students will identify types of expenses

Activities in this Lesson

  • Sponge Activity - Hooks / Set

    (To be put on the board prior to students arriving to class.)

    "Think about the choices you would make if you were given $100 to spend. On a piece of paper, list the following 4 catagories and jot down what you would spend this money on.  Fun, Transportation, Clothing, Savings"

    Ask students to volunteer giving their answers and their reasons for each.

  • Smart Spending - Demo / Modeling

    After students have read pages 15 and 16 in the student guide, students are to be given instruction on creating a pie chart in Microsoft Excel that represents how they spend their money.  Teachers will hand out the given example, "Spending Pie Chart" and use a SmartBoard or their overhead projector to go over how the pie chart was created.

    • Spending Pie Chart.xlsx [ Download ] null
  • My Spending Chart - Guided Practice

    Using their spending log from Unit 1, students will create their spending chart in Excel, creating it the same way as the example shown above. Students will need to use a computer for this activity and may need more instruction on the use of Microsoft Excel software.

  • Are you throwing away your money? - Closure

    Download the document/resource, "Throw away money.pdf" below and go through it with your students. This activity will make a big impact on student understanding about budgeting money.  You will need to make or purchase play money to complete this activity.

Assignment

This assignment is to be completed for the next class day so that students will be able to create a pie chart on their findings. You may need to give some additional explanation on the terms listed, explaining with examples of what some variable expenses might be (electric bill, grocery bills,etc), so that students have a good understanding of what's expected.

"On a piece of paper write down the expenses your parents or guardians have each month, such as the example on page 19, and divide those expenses into 3 columns labeled: Fixed, Variable and Periodic.    Fixed expenses are expenses that are the same each month,  variable expenses fluctuate each month such as the cost of food, and periodic expenses are those that don't need to be paid every month such as a dental bill."    Whe   e  Dur You will be creating a pie chart  You will be creating a pie chart