Money Basics Intro

Overview

This is Lesson 1 of 7 from the unit "Empowering Money Management" targeted at Year 7 students (age 11–12) within the Personal, Social, Health and Economic (PSHE) education curriculum as outlined by the National Curriculum for England. The lesson introduces fundamental concepts about money, focusing on its purpose, types, and vocabulary. Students will start to understand how money can be earned and spent, setting a foundation for more complex financial literacy in later lessons.

National Curriculum Links

PSHE Education Framework (Key Stage 3 - Years 7-9):
Economic wellbeing and financial capability
Understand the role of money and why it is important
Develop skills and vocabulary for managing money responsibly
Statutory Guidance for PSHE (England):
Pupils should be taught about the role and value of money, including budgeting, earning, and spending
Pupils should explore how money is used in society and recognise the difference between needs and wants

Learning Objectives

By the end of this lesson:

Secure: I can explain what money is and why it is used.
Developing: I can list different types of money (e.g., cash, digital money).
Emerging: I can name one way to earn money.

Key Vocabulary

Currency: A system of money in general use in a particular country (e.g., pounds, euros).
Budget: A plan for how to spend or save money.
Value: The importance or worth of something, often expressed in monetary terms.

Lesson Duration

45 minutes

Class Profile

10 students
Mixed abilities, providing opportunity for differentiated learning
Age 11-12 (Year 7)

Lesson Structure

1. Starter Activity (5 minutes)

Objective: Activate prior knowledge and engage interest

Begin by asking a quick question: “What is money for?”
Use a whiteboard to gather student answers (expect answers like buying things, paying for services).
Discuss briefly, introducing money as a medium of exchange, store of value, and unit of account.

2. Introduction to Money Concepts (10 minutes)

Objective: Explain what money is and introduce key vocabulary

Present a simple definition of money and why people use it instead of bartering.
Introduce and discuss the key vocabulary terms: currency, budget, value.
Show visual aids: examples of different currencies (British pounds, coins, notes, examples of digital money like bank cards or mobile payments).
Use an interactive whiteboard or printed flashcards for vocabulary.

3. Types of Money (10 minutes)

Objective: List and explore different types of money

Discuss physical money (coins, notes), digital money (cards, online banking, apps), and barter systems briefly to highlight differences.
Group activity: In pairs, students list as many types of money as they can, then share with the class.
Teacher clarifies and adds any missing types (e.g., virtual currencies can be briefly mentioned but not in-depth).

4. How to Earn Money (10 minutes)

Objective: Identify ways to earn money

Class brainstorming: List common methods Year 7 students might earn money, e.g., pocket money, chores, small jobs, gifts.
Relate earning money to having a budget and making spending choices.
Discuss simple examples of earning and spending decisions relevant to their lives.
Emphasise the value of money as linked to effort/time spent earning it.

5. Worksheet Activity (8 minutes)

Three differentiated questions tailored to learning objectives:

Secure:

What is money used for?
Why do people use money instead of bartering?
Define “value” in your own words.

Developing:

List three different types of money you can use.
Name two currencies used in countries other than the UK.
What is a budget, and why is it useful?

Emerging:

Name one way you can earn money.
What is one thing you might spend money on?
Can you find coins or notes with different values in your house? Name one.

Students complete worksheets individually, with teacher support as needed.

6. Plenary and Reflection (2 minutes)

Invite 2-3 pupils to share their answers.
Recap key vocabulary and ask: “Why is understanding money important for everyone?”
Highlight that next lessons will explore budgeting and managing money responsibly.

Assessment and Feedback

Formative assessment through observation during group/pair activities and worksheet answers.
Provide instant, positive feedback and clarify misconceptions, especially about different types of money and earning methods.
Use worksheet responses to plan targeted support or extension activities for subsequent lessons.

Resources Needed

Whiteboard and markers or interactive whiteboard
Flashcards or printouts showing coins, notes, and digital payment images
Printed worksheets with differentiated questions
Pens/pencils and paper

Differentiation and Inclusion

Use mixed ability pairings for collaborative tasks to support peer learning.
Provide visual vocabulary aids for EAL (English as an Additional Language) learners.
Scaffold worksheet questions with sentence starters for those needing extra help.
Challenge more able students with additional questions about comparing currencies or saving strategies in plenary.

Teacher’s Notes

Encourage students to connect money concepts to their daily lives (e.g., pocket money, shopping).
Be aware of sensitivities around family finances and avoid focusing on personal income details.
Make the lesson interactive and visual to maintain engagement for all learners.
Capture student enthusiasm and respect their emerging ideas about money.

This lesson firmly aligns with the National Curriculum’s PSHE objectives by introducing students to economic wellbeing and financial capability through practical, age-appropriate content. The structure supports inclusive, engaging learning and builds a strong foundation for responsible money management education.

Teaching Instructions