Financial Literacy Lesson Plan

Introduction to Financial Literacy 10 Min

Begin the lesson with a hook to capture students' interest. Ask a provocative question: 'What would you do if you were given $1,000 right now?' Allow students to share their answers. Introduce the concept of financial literacy and its importance. Explain key terms such as income, expenses, budgeting, saving, and investing. Use a summary excerpt to provide a real-world example of a young adult who successfully managed their finances. Discuss how financial literacy can impact their future.

Note

Engage students by connecting the topic to their personal experiences and future aspirations.

Section resources

summary reference sheet - kickstart your financial journey

Understanding Budgeting 15 Min

Present the new material by explaining what a budget is and why it is essential. Use a worksheet to outline the steps of creating a budget: listing income sources, tracking expenses, and setting financial goals. Provide a context excerpt of a teenager's monthly budget to make it relatable. Use a Rule Table to categorize different types of expenses (fixed, variable, discretionary). Encourage students to think about their own spending habits and how they can manage their money better.

Note

Break down the information into manageable chunks and use relatable examples to ensure understanding.

Section resources

fill in the blanks worksheet - understanding budgeting- fill in the blanks worksheet
rule table reference sheet - understanding budgeting- expense categorization rules
context reference sheet - mastering your money- the basics of budgeting

Saving and Investing 15 Min

Introduce the concepts of saving and investing. Explain the difference between the two and the importance of each. Use a video to illustrate how compound interest works and its benefits. Provide a worksheet with scenarios where students have to decide how to allocate their money between saving and investing. Discuss the risks and rewards associated with different types of investments. Encourage students to think about their long-term financial goals and how saving and investing can help achieve them.

Note

Use multimedia tools to make complex concepts more accessible and engaging.

Section resources

assessment worksheet - saving and investing
youtube video - compound interest explained in one minute 

Interactive Activity: Budgeting Exercise 10 Min

Conduct a hands-on budgeting exercise. Divide students into small groups and provide them with task cards that outline different financial scenarios (e.g., part-time job income, unexpected expenses). Each group will create a budget based on their scenario and present it to the class. Use a Question Card to prompt critical thinking: 'What would you do if your expenses exceed your income?' Provide specific feedback to each group. This activity will help students apply what they've learned and develop problem-solving skills.

Note

Facilitate group work and ensure all students participate actively in the exercise.

Section resources

task cards - monthly budgeting challenges for students
question cards - personal budgeting and financial planning

Conclusion and Q&A 5 Min

Summarize the key points covered in the lesson. Use a Quick Write activity where students jot down one thing they learned and one question they still have about financial literacy. Address these questions in a brief Q&A session. Encourage students to reflect on how they can apply the knowledge gained to their own lives. Provide additional resources such as books, websites, and apps for further learning.

Note

Ensure students leave the class with a clear understanding of the concepts and how to apply them.