Smart Money Skills

Duration: 30 minutes
Class Size: 10 students
Curriculum Area: Social Sciences → Business Studies (The NZ Curriculum)
Level: Level 4

Achievement Objective:
Students will develop an understanding of how people make decisions about resources and participate in economic activities. Specifically, they will learn about managing finances, budgeting, and making informed spending decisions.

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Learning Outcomes

By the end of this lesson, students will be able to:

• Identify the difference between “needs” and “wants.”
• Create a basic budget for a personal goal using key money principles.
• Understand the importance of saving and how interest works.

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Materials Needed

• Whiteboard or smart board
• Markers
• Small whiteboards or notebooks for each student to brainstorm
• Fake banknotes (printouts or class currency)
• Pre-prepared poster or slide with a financial scenario (provided below)

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Lesson Structure

1. Introduction (5 minutes)

1. Hook Activity – Needs vs Wants Sort (2 minutes)

   • Write the words “needs” and “wants” as two columns on the whiteboard.
   • Quickly go around the room asking students to name one thing they think is a need and one thing they think is a want (e.g., food vs a new game).
   • Discuss how distinguishing between needs and wants is important when making financial decisions.

2. Set the Scene (3 minutes)

   • Briefly introduce the concept of being “money smart,” explaining this means understanding how to manage money so we can make good choices.
   • Pose a question: “Have you ever had to save up for something you really wanted, like a new skateboard or a trip to the movies?”

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2. Activity: Budgeting for a Goal (10 minutes)

1. Scenario Explanation (3 minutes)

   • Present students with this scenario (on a poster, slide, or verbally):
     “Imagine you are saving up for a school trip costing $120. You earn $10 a week by helping at home. You also have some expenses, like buying lunch ($5 per week) or small treats. How can you create a plan to save enough money in 12 weeks while still allowing yourself a little fun along the way?”
   • Highlight that this activity will require calculating, prioritising, and balancing needs vs wants.

2. Small Group Activity (7 minutes)

   • Split students into pairs or small groups.
   • Provide fake banknotes (or class currency) for hands-on interaction.
   • Ask each group to create a 12-week budget that includes:
     • Total savings for the trip
     • Weekly allowances for lunch, treats, and a small “emergency fund”
   • Prompt students to think creatively: What happens if they give up treats for 2 weeks? What if they complete extra chores to earn $5 more per week?

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3. Reflection: Saving & Interest (8 minutes)

1. Group Sharing (5 minutes)

   • Each group will briefly share their budgeting strategy and insights with the rest of the class.
   • Challenge them to explain what they prioritised and why. Were there any sacrifices? Were they able to save more by making smart choices?

2. Teacher Mini-Talk: Saving & Interest (3 minutes)

   • Use the final activity to drive home the importance of saving.
   • Introduce the concept of interest: “When we save with a bank, we earn extra money called interest. So the earlier we save, the quicker our money grows!”
   • Use a simple example: “If you save $10 each week for 12 weeks, that’s $120. If you earned 2% interest, how much more would you have at the end?” Keep the maths simple and age-appropriate.

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4. Wrap-Up & Takeaways (2 minutes)

• Recap the key skills learned: needs vs wants, making a budget, and saving smart.
• Ask each student to write one thing they learned on a small whiteboard or page and share it with the class before leaving.
• Encourage them to think about a personal savings goal to work on at home.

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Differentiation

• For students who need support: Provide a pre-filled budgeting table with expenses already listed but blank spaces for amounts.
• For advanced students: Introduce small financial challenges like unexpected expenses (e.g., “You damage your phone charger and need to replace it for $15. How does this change your budget?”).

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Teacher Notes

• Use clear, real-life examples to keep students engaged and relate concepts to their personal lives.
• Consider revisiting this lesson in the future to build on today's ideas by introducing concepts like long-term savings and basic investment strategies in follow-up classes.
• Ensure you incorporate Māori and Pasifika perspectives when discussing values around money, such as collective responsibility and shared resources.