Personal Budget Skills

Overview

This 60-minute lesson is Lesson 3 of 20 in the unit "Future Life Skills", designed for Year 7 students (age 11-12) with a small class of 3 pupils. The focus is on introducing students to the fundamentals of creating a personal budget by identifying income and expenses. This lesson aligns with the National Curriculum for England, particularly strands in Mathematics (financial literacy aspects in Number - using money and budgeting) and PSHE (Personal, Social, Health and Economic Education).

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National Curriculum Links

• Mathematics – Number: Money and Financial Capability

  • Use mathematical knowledge and skills to manage money, make estimates and calculate costs.
  • Understand and work with simple budgeting concepts.

• PSHE Education: Economic Wellbeing and Careers

  • Develop knowledge and understanding of personal finance, including budgeting and managing money.
  • Make informed choices about money and understand the value of budgeting.

• Statutory Guidance References

  • Years 7 and 8: Financial education relevant to budgeting, income, essential/optional expenditure.

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Learning Objectives

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

1. Define 'income,' 'expenses,' and 'budget' in simple terms relevant to personal finance (NC: PSHE Economic Wellbeing).
2. Identify and classify examples of income and expenses in everyday life.
3. Create a simple personal budget including income and expenses using a hands-on, practical approach (NC: Maths – managing money).
4. Understand the importance of budgeting for financial planning and control.

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Resources Needed

• Large poster board or whiteboard
• Pre-prepared scenario cards showing different sources of income (e.g., pocket money, gifts) and expenses (e.g., snacks, games)
• Printed budgeting templates with columns for income and expenses (simple spreadsheet style)
• Colour-coded markers or sticky notes
• Calculators (optional)
• Visual timers and sensory fidget toys for ADHD/autism regulation
• Laminated ‘budgeting coins’ or counters for a tactile money simulation

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Lesson Structure

1. Starter – Engage and Connect (10 minutes)

• Activity: “What do you spend your money on?”
  • Invite each student to share something they might receive money for (income) and what they might spend money on (expenses).
  • Use the whiteboard/poster to list examples under two headings: Income and Expenses.
  • Use visual aids / real coins or counters to show how money moves from income to expenses.
• Differentiation: Use sentence starters or picture prompts for students who need language support.

2. Introduction to Budgeting (10 minutes)

• Define key terms: Income, Expenses, Budget clearly with simple definitions and examples.
• Use a budgeting story with a relatable character (e.g., a student saving for a new game).
• Show a completed example of a simple budget on the board, highlighting income and expenses balancing.

3. Hands-on Practical Activity (30 minutes)

• Task: Create Your Own Personal Budget
  • Give each student a budgeting template and a set of scenario cards.
  • Students pick cards representing their income sources and expenses.
  • Use sticky notes or coloured markers to organise these on the budgeting sheet.
  • Encourage tactile engagement by using counters for money amounts — they ‘spend’ and ‘earn’ tokens to visualise their budget.
  • Prompt them to calculate total income, total expenses, and balance (surplus or deficit).
• Support: Provide sensory breaks or fidget tools for any student needing sensory regulation. Use timers to ensure focus during each step.
• Extension: Challenge students to adjust their budget if expenses exceed income by removing or reducing expense cards and observing the impact.

4. Review and Reflect (10 minutes)

• Gather students to share their budgets aloud.
• Discuss: Which expenses were essential? Which could be trimmed? Why is a budget important?
• Emphasise real-life applications and consequences of budgeting skills.
• Provide positive and specific feedback on their budgeting decisions.

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Assessment & Feedback

• Formative Assessment:
  • Observe students’ ability to identify income/expenses correctly during discussions and activities.
  • Check completed budget templates for correct totals and understanding of the concept of balancing a budget.
• Questioning: Use probing questions, e.g., “What happens if you spend more than you earn?”
• Self and Peer Assessment: Students explain their budgeting choices to classmates to reinforce understanding.

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Differentiation & Inclusion

• For ADHD/Autism:

  • Break tasks into small chunks with clear visual instructions.
  • Use hands-on materials and movement breaks to maintain engagement.
  • Allow choice in cards/scenarios to enhance personal relevance and control.
  • Provide quiet workspaces or use headphones if needed.

• For EAL and SEN:

  • Use visuals and realia to reinforce vocabulary meaning.
  • Scaffold writing with sentence frames.
  • Offer additional adult support with budgeting calculations if necessary.

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Additional Notes for Teachers

• Actively encourage students to relate budgeting to their current experiences (pocket money, gifts).
• Be flexible with time allocations based on individual student needs and class flow.
• Use positive visual reinforcements (stickers, stamps) to celebrate student effort.
• Consider extending this lesson with a digital budgeting app in future classes where appropriate.

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This lesson plan grounds itself thoroughly in the National Curriculum while embracing multi-sensory, inclusive strategies to make budgeting engaging and accessible for all learners, especially those with ADHD and autism.