Lesson Plan

Moving from Allowance to Income

Students will learn to transition from managing an allowance to earning and budgeting income, while developing key financial literacy skills including budgeting, saving, and understanding different income sources.

Understanding personal finance is critical for independence and success in adulthood. This lesson fosters practical money management skills relevant to real-life scenarios.

Audience

Time

Approach

Materials

Prep

Lesson Preparation

15 minutes

Step 1

Introduction and Context Setting

10 minutes

Step 2

Exploring Income and Budgeting

20 minutes

Step 3

Practice Activity: Income and Budget Planning

20 minutes

Step 4

Wrap-up and Reflection

10 minutes

Slide Deck

Managing Personal Income

Introduce the topic by connecting everyday allowances to managing personal income. Emphasize what personal income is and why understanding it is critical for independence. Encourage students to think about how the lessons apply to real-life scenarios.

Different Income Sources

Explain different sources of income including earned, passive, and portfolio income. Use real-life examples and consider asking students if they know someone with diverse income sources.

Budgeting Basics

Discuss the importance of budgeting. Highlight how budgeting helps in making informed spending decisions and plans for savings. Use a simple budgeting chart as an example.

Practical Example: Budgeting

Provide a practical budgeting example, demonstrating how to allocate income across different needs and priorities. Pose interactive questions about how students might allocate a hypothetical income.

Key Takeaways

Conclude with key takeaways. Invite students to share one financial habit they can start practicing immediately and how understanding income can impact their future planning.