Budgeting and Saving

Lesson Overview

This 30-minute session aims to equip Year 11 students with practical financial skills that promote responsible money management, aligned with the PSHE and Citizenship statutory requirements within the National Curriculum (England). Students will explore income and expenditure, create simple budgets, and develop positive saving habits through interactive discussion and applied activities.

The Big Picture

Being financially literate is an essential life skill that supports personal independence and wellbeing. Understanding how to track income, control spending, and save for future goals empowers young people to make informed decisions, reduce money worries, and prepare for adult financial responsibilities. This lesson builds the foundation towards the National Curriculum’s intent to enable students to manage money wisely and understand the consequences of financial decisions.

Learning Objectives

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

Define key financial concepts: income, expenditure, budgeting, saving.
Track hypothetical income and expenses using a structured approach.
Create a basic budget to balance money coming in and money going out.
Explain at least two benefits of regular saving and identify simple strategies to save money.

These learning objectives align with the National Curriculum for PSHE Education (Non-statutory Programme of Study, KS4) focusing on:

Managing risks and personal finance: “making informed decisions relating to financial choices”
Developing skills for economic well-being: “budgeting, managing personal finances”

SMSC (Spiritual, Moral, Social and Cultural) Development

Spiritual: Reflect on personal attitudes towards money and savings, encouraging self-awareness about financial values.
Moral: Discuss ethical decisions around spending and financial planning, such as prioritising needs versus wants.
Social: Collaborate and communicate ideas about money management in a supportive learning environment.
Cultural: Recognise diverse financial situations and cultural approaches to money within their community.

Lesson Structure

Time (mins)	Episode	Teacher Activity	Student Activity	Outcome
0–5	Introduction and Context	Explain importance of budgeting and saving; outline terms.	Listen and ask questions about personal money experiences.	Understand lesson purpose and key terms.
5–15	Tracking Income and Expenses	Present a simple case study with example incomes and expenses.	Complete a worksheet to record income and track expenses.	Apply tracking skills to given financial data.
15–25	Creating a Budget and Saving	Guide creating a balanced budget and discuss saving strategies.	Create own budget from case study; identify saving methods.	Synthesise understanding by budgeting and planning.
25–30	Review and Reflection	Lead discussion on benefits of budgeting and saving habits.	Share reflections and complete a short quiz on key concepts.	Consolidate learning and self-assess.

Resources and Materials

Worksheet: 'Income & Expenses Tracker and Budget Planner' (included below)
Pens or pencils
Whiteboard or flip-chart for key terms and sample budget

Worksheet: Income & Expenses Tracker and Budget Planner

Name: ___________________

Part 1: Track Income and Expenses (Using the case study below)

Case Study:
Jamie receives the following monthly income and expenses:

Item	Amount (£)
Part-time job income	500
Pocket money	50
Mobile phone bill	40
Transport (bus pass)	60
Food and snacks	70
Entertainment	100
Clothes	80
Saving for holiday	50

Instructions: Fill in the table below and calculate total income and total expenses.

Income	Amount (£)	Expenses	Amount (£)

Total Income: £________
Total Expenses: £________

Part 2: Budget Planner

Is Jamie’s budget balanced? (Yes/No) _______
If No, what changes could Jamie make to balance the budget?

List two ways Jamie could increase savings:

What are two benefits of saving money regularly?

Additional Teacher Notes

Encourage students to personalise answers by comparing the case study to their own financial experiences (if applicable).
For differentiation: Provide more or fewer financial items depending on students’ confidence.
Emphasise that budgeting is a skill that improves with practice and helps avoid debt and stress.
Use real-life language and scenarios to make the topic relevant and engaging.

This lesson will prepare students for real-world financial decisions and supports the overarching goal of PSHE to equip young people with knowledge and skills for a successful adult life.

Teaching Instructions