Basic Money Management for Adults - Remix

Created Feb. 7, 2024 by Pauline Muljana

Print-friendly Version of the Lesson

A print-friendly version (https://tinyurl.com/yy353fd9) of this lesson plan is also provided for the teacher to quickly print and review the activities involved in this lesson plan. All materials and links to the video are also included in the print-friendly version. 

Note: The print-friendly version and non-video materials are stored in a Google Drive. When previewing it from Google Drive, the page format may look unorganized. We recommend that the teacher downloads the print-friendly document and opens it in Microsoft Word.


Instructional Strategies and Activities

Introduction - Part 1

Time: 10 minutes

The video (https://youtu.be/9_NiqI3RAOA) is a short one-minute presentation on issues related to financial matters and a way to practice money management. Learners will be asked to take notes while the video is playing and note down what is most applicable to their own lives right now. Learners and teacher will then engage in a brief review/discussion of the video before the next lesson segment. 

Learners will be asked to participate in a reflective prompt which will allow them to reflect upon the importance of money management.

Suggested discussion items are regarding learner’s previous experience with budgeting:

  • How do you budget?
  • What works in your current budget?
  • What does not work in your current budget?

These questions will cover prior knowledge that the learners have with spending and saving money.  The questions will be designed to help determine the level of skill and knowledge that the learners have on money management.  They will be asked to call upon personal experiences where they felt they managed money well, and times when they felt the managed money poorly.

Next, teachers can discuss how the next lesson segments will help the learners improve their budgeting strategy.


Introduction - Part 2

Time: 10 minutes

The second part of the introduction will consist of basic percentage questions to be answered openly.  Some examples of the questions are as follows:

  • Lydia has $100. She’s planning to take 50% of her money to buy clothes for her job interview next week. How much is she planning to spend?
  • Gerald has $300. He wants to take out 30% of his money for buying a used Android tablet.  How much does the tablet cost? 
  • Rina is making $400 this week. She wishes to put aside 20% for savings.  How much money is that?

The questions will cover pre-requisite knowledge that the learners have regarding calculating money in percentages. The teacher may present the questions to the learners and have them casually provide answers.  

Note:

Should the learners in the room struggle to answer these questions the following resources may be helpful:

  • Percent of a Whole Number (video explanation from Khan Academy at https://www.khanacademy.org/math/pre-algebra/pre-algebra-ratios-rates/pre-algebra-percent-problems/v/taking-a-percentage-example) 
  • Think aloud process for Calculating the Percent of a whole number:
    • Explain the first step in calculating the percentage of the number, is to convert the percentage into a decimal.  
    • Remind learners that they can easily change percentages into decimals by placing a decimal point in from of the percents, so 30% becomes .30
    • To calculate the percentage, ask them to multiply the total amount by the decimal form of the percentage


Main Presentation

Time: 20 minutes

The main presentation stage will be divided into two sub-stages: the concept of “needs” and “wants” and the concept of 50/30/20 rule. 

This short video (https://youtu.be/QyuU4wFIz3o) presents the concept of “needs” and “wants.” Next, the teacher facilitates a line-by-line discussion on the differences between needed items and wanted items. The teacher additionally leads learners in a discussion on what they think the “needs” and “wants” items are, and provides feedback as necessary. A reminder is provided that each learner may have different “needs” and “wants.” For example, learners with family have different “needs” than those who are still single. However, the teacher suggests a careful consideration that learners think about the importance of prioritizing items in their “needs” and “wants.” Optionally, a worksheet (https://tinyurl.com/y57szeoh) can be used to facilitate this discussion. The teacher can download this worksheet and open it in Microsoft Word.

Displaying a 50/30/20 rule infographic (https://tinyurl.com/y39fa2xa), the teacher introduces the ideal 50/30/20 rule (50% for “needs,” 30% for “wants,” and 20% for savings). A reminder is provided that each learner may develop a personalized rule according to individual circumstances. For example, while the ideal rule is 50/30/20, it is acceptable to have a 60/35/5 rule. Note, the teacher can download the infographic and open it in Microsoft PowerPoint.


Practice

Time: 25 minutes

Either in pairs or in a small group, learners are provided with a scenario aligned with the introductory video about Michael.  Learners will work in pairs or in a group of three to develop Michael’s budget, separating the “needs” from the “wants.”  The teacher may use the printable problem questions (Michael’s scenario) (https://tinyurl.com/y6qe26cf).  The teacher can download this worksheet and open it in Microsoft Word. Some examples of guided questions are:

  • What percentages of Michael’s budget are “needs” and “wants?”
  • Is savings viable at this point?
  • Are there any “wants” to eliminate?
  • After eliminating “wants,” what is Michaels’ new ratio of “needs,” “wants,” and “savings?”
  • After eliminating these “wants,” what percentage is left over for savings?
  • Do you think the 50/30/20 rule is appropriate for Michael , or do you think he may need to modify it? 

Next, the teacher can facilitate a discussion and reflection on financial impacts of one’s decisions, and items to consider relating to “wants,” versus “needs.” The teacher provides immediate feedback.   


Application and Informal Evaluation

Time: 20 minutes

For the individual activity, learners will develop a simple budget for a single individual. The teacher will distribute a printed budgeting worksheet (https://tinyurl.com/yynsbtmv). The teacher can download this worksheet and open it in Microsoft Word. Through this activity, individual learners will apply the concepts from today by reflecting on the prior week’s spending and writing in figures for weekly approximate expenses. The teacher may ask some guiding questions below and provide feedback.

  • Do you have any money left? 
  • What is your current approximate ratio of “needs” and “wants?”
  • Are there any “wants” to eliminate?
  • After eliminating some “wants,” will saving plans be viable? 
  • What is the new approximate ratio of “needs,” “want,” and “savings?”


Closing

Time: 10 minutes

The closing lesson will be used to motivate the learners to apply what they have learned from the lesson. Through careful consideration and calculation of expenses, learners would be able to save by eliminating some “wants.” Teachers can facilitate a closing discussion and reflection on financial impacts of daily decisions, and items to consider relating to “wants” versus “needs.” It is also important to provide a reminder that everybody’s rule may vary depending on individual circumstances. Extra printed budgeting worksheet (created by Capital One and available at https://www.capitalone.com/media/doc/financial-education/budgeting-worksheet.pdf) can be provided so that learners can use it for their own weekly budgeting.

The teacher can additionally motivate the learners to think about their future financial plans, such as an idea regarding opening a bank account. Two examples of the websites including the instructions to open a bank account are: 

Before the learners leave the class, the teacher distributes a printed anonymous paper-based survey for each learner.  All learners are asked to rate their comfort level in performing each of the learning objectives, as well as pragmatic questions about the facilitator’s promptness, willingness to respond to questions and create a positive learning environment. 


Note for teachers:

After using this lesson plan, please share any feedback through OER Commons. Please rate the comfort level in completing the instruction and assessment of each of the learning objectives, and suggestions for improving the materials or design. If there is further feedback, please do not hesitate to send it to Designers for Learning.


References

  • Budgets | Federal Trade Commission, FTCvideos
  • Percent of a Whole Number, Khan Academy
  • Needs vs Wants | Columbia College, Columbia College
  • (Weekly) Budgeting Worksheet, Capital One


Attribution Statements

  • Content created by FTCvideos at https://youtu.be/9_NiqI3RAOA
  • Content created by Khan Academy at https://www.khanacademy.org/math/pre-algebra/pre-algebra-ratios-rates/pre-algebra-percent-problems/v/taking-a-percentage-example
  • Content created by Columbia college at https://youtu.be/QyuU4wFIz3o
  • Content created by Capital One at https://www.capitalone.com/media/doc/financial-education/budgeting-worksheet.pdf
Return to top