Income and Spending Comparison

Year Group

• Year 8

Duration

• 60 minutes

Class Size

• 6 students

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National Curriculum Links

PSHE – Health and Wellbeing Strand: Economic wellbeing and financial capability

• KS3 Pupils should be taught to:
  • "Understand that, in the UK, personal finance is part of economic wellbeing: how to plan and manage their money."
  • "Recognise the importance of budgeting and comparison of income and expenditure."
  • "Learn how to keep track of personal income and spending and understand how to prioritise expenditure."

Specifically aligned to:

• PSHE Association Programme of Study (England) – Key Stage 3:
  • Pupils should be able to analyse and evaluate financial information and recognise the benefits and risks involved in spending decisions.
  • Develop accurate calculations related to income and spending.

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Learning Objectives

By the end of the lesson, pupils will be able to:

1. List one week's personal income and spending from given scenarios (linked to PS3.04).
2. Carry out division calculations to convert annual or weekly salaries into monthly income.
3. Research average costs for key living expenses accurately using a range of sources.
4. Use Excel spreadsheets to organise and compare income and spending.
5. Analyse and discuss the balance between income and expenditure, and consider societal implications.

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Resources Required

• Computers/tablets with internet access
• Excel or similar spreadsheet software
• Paper and pens for notes
• Scenario cards detailing different family circumstances and associated expenses
• Whiteboard/Smartboard for starter and discussion
• Calculator (optional)

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Lesson Outline

Starter (10 minutes)

1. Introduction and Context Setting
   • Brief discussion: "What do you think an average salary is for different jobs in the UK?"
   • Pupils independently research 3–5 different common jobs (e.g. teacher, nurse, mechanic, shop assistant).
   • Record the annual salary and calculate the monthly equivalent by dividing by 12.
   • Recap division skills and provide mini-support as needed.
   • Teacher models one example calculation on the board.

Rationale: Activates prior knowledge, introduces real-world context, and reinforces numeracy skills.

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Main Activity (40 minutes)

1. Scenario Introduction (5 minutes)

   • Distribute scenario cards to students; each card describes a person/family with their living circumstances, e.g.,
     • Household income (weekly or monthly wages)
     • Fixed commitments: Food, Petrol, Electricity, Gas, Council Tax
     • Additional expenses: MOT, car tyres, children’s activities, school shoes, etc.
   • Explain pupils will use research to find average prices for each item, noting geographic variation is allowed but focusing on UK figures.

2. Research and Data Collection (15 minutes)

   • Pupils research average costs corresponding to their scenario using pre-selected reputable UK sources (school resource lists or offline guidance from teachers).
   • They should record approximate weekly or monthly costs in note form, clarifying conversion if prices are weekly but are required monthly.

3. Recording in Excel (15 minutes)

   • Teacher demonstrates how to use an Excel spreadsheet to list income and itemised expenses in columns.
   • Pupils create their own spreadsheet with rows for each cost and the total expenditure.
   • They calculate whether their monthly income covers their expenses and the difference (surplus/deficit).
   • Encourage use of simple formulas (SUM, subtraction).

4. Numeracy and Interpretation

   • Support pupils who need help structuring spreadsheet formulas.
   • Encourage consideration of priority (what must be paid first, what expenses are flexible?).

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Plenary (10 minutes)

Discussion and Critical Thinking:

• Pose the question:
  “If you were in charge of the country, what changes would you make to costs such as council tax, utilities, childcare or school essentials? Which should be cheaper or more expensive? Why?”
• Encourage each student to contribute ideas.
• Promote reflection on how economic decisions impact families and individuals.
• Wrap up by linking their personal budgeting knowledge to broader economic wellbeing and social responsibility, referencing the National Curriculum’s intent on preparing pupils for adult life.

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Assessment Opportunities

• Formative:

  • Observation of research skills and use of spreadsheets during main activity.
  • Accuracy of income and expenditure calculations.
  • Contributions to plenary discussion indicating understanding of living costs and societal implications.

• Summative (can be extended or handed in):

  • Completed Excel spreadsheet with correct income and spending comparison.
  • A brief written or verbal explanation of their scenario’s budget balance and any suggested societal changes.

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Differentiation and Inclusion

• Provide scaffolded scenario cards with varying complexity.
• Offer calculator and checklists for students with numeracy difficulties.
• Allow pair or group work for less confident students (social learning).
• Encourage extension activities (e.g., creating graphs of income vs expenditure) for more able learners.

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Cross-Curricular Links

• Maths: Division, budgeting, organising data, Excel spreadsheet skills.
• Citizenship: Understanding socio-economic factors affecting families, government role in economic wellbeing.
• Computing: Spreadsheet skills, data handling.

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Teacher Tips & WOW Element

• WOW Factor: Prior to the lesson, create a ‘mock national budget challenge’ game for groups to negotiate prioritisation of expenses if money doesn't stretch.
• Engage with Real Data: Bring in anonymised examples from real life or news reports for deeper relevance.
• Use dynamic Excel templates with conditional formatting (e.g., red highlight if expenses exceed income).
• Invite students to suggest and search for ‘hidden costs’ or seasonal expenses to extend financial awareness beyond basics.

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Lesson Summary

This lesson develops young people’s financial literacy through a hands-on approach to comparing personal income with spending. It provides mathematical challenge, critical thinking, and real-world skills aligned tightly with the PSHE National Curriculum for England. Using technology such as Excel and engaging, relatable scenarios ensures pupils enjoy and understand the importance of budgeting and economic wellbeing in their lives now and in the future.