Lesson 50: Budgeting
About This Lesson: In this lesson, students learn how budgeting connects directly to saving, investing, and long-term financial stability. Using the 50-30-20 rule, students practice organizing income into three categories: essentials, lifestyle spending, and future savings. The lesson emphasizes that strong budgeting habits make it easier to save money, avoid financial stress, and build wealth over time. Students will also explore how compound interest can help savings grow when money is invested consistently. Through a budgeting scenario, worksheet activities, calculators, and step-by-step teacher modeling, students will learn how to make realistic financial decisions, prioritize needs over wants, and understand the importance of planning for the future.
Lesson Plan & Other Important Documents
| budget_simulation_rogue_credit_union.pdf |
| lesson_20_budgeting_english__1___1_.pdf |
| lesson_17_budgeting__spanish_.pdf |
English |
Spanish |
Worksheet |
Do Now: Imagine you just received $100.
Answer the questions below in 3–4 complete sentences:
Answer the questions below in 3–4 complete sentences:
- How much of the $100 would you spend right away?
- How much would you save?
- What would you spend or save the money for?
- Why is it important to make a plan before spending money?
Directions: Watch the video thoroughly. It will help you understand compound interest. It will also help you fill out the budget worksheet.
Compound Interest Calculator: CLICK HERE
Ratio Calculator: CLICK HERE
Day 2: Lesson 50
The first video in this lesson emphasizes the critical relationship between budgeting and saving money, highlighting that if one cannot budget effectively, they cannot save. Mr. Kazanjian encourages students to master these skills, as the earlier they learn to save, the wealthier they will become. The lesson is structured to allow for initial exploration followed by a detailed, step-by-step guide (in the videos below this one). Students are required to have specific materials, including a Lesson 50 Worksheet and small piece of paper with a scenario, to facilitate the learning process.
Mr. Kazanjian discusses the importance of categorizing income into essentials (ideally 50% of your monthly budget), lifestyle (ideally 30% of your monthly budget), and future savings (ideally 20% of your monthly budget), with a strong emphasis on the future. By referring to the historical performance of the S&P 500, which has averaged a return of 10.26% since its inception, the lesson illustrates the power of compound interest. For instance, an investment of $1,000,000 at a 10% return yields $100,000 annually (not including tax deductions), demonstrating how consistent saving and investing can lead to significant financial stability and independence. The lesson prepares students to move on to practical steps for effective budgeting and saving. Below are photos of the scenario that Mr. Kazanjian will be demonstrating (in all of the videos as you scroll down the page).
Mr. Kazanjian discusses the importance of categorizing income into essentials (ideally 50% of your monthly budget), lifestyle (ideally 30% of your monthly budget), and future savings (ideally 20% of your monthly budget), with a strong emphasis on the future. By referring to the historical performance of the S&P 500, which has averaged a return of 10.26% since its inception, the lesson illustrates the power of compound interest. For instance, an investment of $1,000,000 at a 10% return yields $100,000 annually (not including tax deductions), demonstrating how consistent saving and investing can lead to significant financial stability and independence. The lesson prepares students to move on to practical steps for effective budgeting and saving. Below are photos of the scenario that Mr. Kazanjian will be demonstrating (in all of the videos as you scroll down the page).
The Scenario I Will Be Working With
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Do you know what the 50-30-20 rule is? If no, see below.
