Smart Spending Skills

National Curriculum Links

Mathematics

• Number: Using knowledge of addition, subtraction, multiplication, and division to solve problems involving money, including simple budgeting and financial planning
• Pupils should be taught to solve problems involving the calculation and conversion of units of measure, using decimal notation up to three decimal places where appropriate
• Solve problems involving addition, subtraction, multiplication, and division, including scaling by simple fractions and problems involving simple rates

Mathematics – Pupils should be taught to:

• Solve problems involving addition, subtraction, multiplication, and division (including scaling by fractions and relating to simple rates).
• Use all four operations to solve problems involving money, including giving change.

Personal, Social, Health and Economic Education (PSHE) – Economic Wellbeing

• Recognise the role of money in people's lives and the importance of budgeting
• Understand needs and wants and make informed choices when spending

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Learning Objectives

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

• Define and explain key budgeting terms such as income, expenses, saving, and spending.
• Organise and manage a simple budget using given income and expense information.
• Demonstrate the ability to make informed decisions to stay within a budget.
• Apply mathematical operations to calculate totals, change, and savings within a budgeting context.
• Reflect on the importance of budgeting in everyday life and consider the consequences of overspending.

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Key Vocabulary

• Budget
• Income
• Expenses
• Saving
• Wants
• Needs
• Spending
• Change
• Total cost

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Equipment and Resources Needed

• Whiteboard and markers
• Printed budgeting worksheets
• Fake money or tokens (optional for practical exercise)
• Calculators (optional)
• Projector/interactive whiteboard for starter activity
• Visual aids: budget charts, example receipts

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Lesson Structure

Starter Activity (10 minutes)

"Needs vs Wants Sorting"

• Show images or objects on the board representing various items (e.g., food, toys, clothes, games console, bills, sweets).
• Pupils work in pairs to discuss and sort these into “Needs” and “Wants.”
• Ask pairs to share their reasoning with the class.
• Teacher introduces the concept that budgeting helps to manage money to pay for "needs" before "wants."

Main Teaching Activities (20 minutes)

1. Introduction to Budgeting (10 minutes)

• Write key vocabulary on the board; discuss briefly the meaning of each word in the context of money management.
• Present a basic example: A weekly allowance of £20 and list example expenses (e.g., £5 pocket money spent on sweets, £10 for a birthday gift).
• Demonstrate on the board how to calculate total expenses and remaining money through addition and subtraction.
• Introduce the idea of keeping track using a budget sheet.

2. Class Discussion and Modelling (10 minutes)

• Pose a question: “What could happen if you spend all your money on wants and don’t save for needs?” Guide discussion towards consequences like not affording essentials or emergencies.
• Model using simple realistic scenarios that require choices to keep within a budget and save money for future needs.

Practical Budgeting Exercise (20 minutes)

Scenario: Planning a Birthday Party on a Budget

• Each pupil is given a budgeting worksheet showing:
• A fixed budget of £50
• A list of items with prices (balloons, snacks, cakes, games, decorations, party bags, etc.)
• Pupils decide what to buy, record expenses, calculate totals, and ensure the overall cost stays within the £50 budget.
• Encourage pupils to justify choices balancing ‘needs’ and ‘wants.’
• Optional: Use fake money/tokens to physically ‘buy’ items, reinforcing hands-on learning.

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Assessment/Reflection Activity (10 minutes)

• Pupils complete a short reflection prompt on their worksheet:
• “What did you find easy or difficult about managing the budget?”
• “How did you decide what to spend money on?”
• “Why is it important to keep track of money in real life?”
• Partner share: pupils discuss their responses in pairs.
• Teacher collects worksheets to assess understanding of budgeting concepts and mathematical accuracy in calculations.

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Differentiation

• Provide simplified budget sheets and fewer spending options for pupils needing extra support.
• Challenge more able pupils by adding more complex budgeting scenarios, including saving a percentage of the budget or incorporating unexpected expenses.
• Use visual and kinaesthetic learning aids (fake money, counters) to support understanding of spending and change.

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Additional Notes

• This lesson not only covers key mathematical skills related to addition, subtraction, and budgeting but also incorporates critical financial literacy and personal responsibility, addressing statutory requirements in PSHE for managing money and appreciating financial choices.
• Incorporate real-life context to make the learning relevant and engaging.
• Teachers may link to cross-curricular topics in PSHE or citizenship on money management and economic wellbeing.

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Follow-Up Suggestions

• Extend to an ongoing “class budget” for a class event where pupils can plan actual spending.
• Incorporate technology by using simple spreadsheet software to track budgets digitally.
• Link with a visit from a financial adviser or local bank to deepen financial literacy.