Managing Your Finances

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  • Lesson Identification and TEKS Addressed

    Cluster : Human Services

    Course : Dollars and Sense

  • TEKS Student Expectations

    • (2) The student demonstrates management of financial resources to meet the goals of individuals and families across the life span. The student is expected to:
      • (A) evaluate the need for personal and family financial planning, including budgeting, expense records and maintaining economic self-sufficiency
      • (F) investigate the benefits of charitable giving
      • (L) demonstrate the ability to use calculators, spreadsheets, computers and software in data analysis relating to finance
  • Basic Direct Teach Lesson

    Instructional Objectives

    Students will:

    • understand importance of a financial plan
    • recognize key components of a financial plan
    • create a budget for an assigned family income
    • figure percentages on a pie graph using the budget and compare their graph to national averages.
    • understand how charitable giving not only benefits the receiver, but also themselves through reduced taxes
    • identify self-reflection activities that help them examine their priorities
  • Rationale

    Everyone wants to have the resources to provide for all of their needs and some of their wants. In this lesson, you will identify and understand the seven components of a secure financial future. You will learn about budgeting and practice the skills necessary to create a working budget.

  • Duration of Lesson

    Seven 45 minute class periods

  • Word Wall

    Assets: Anything such as cars, our home, collections or savings that are of monetary value

    Budget: A plan for spending

    Cash Flow: The cycle of money available in the form of income and then spent on expenditures

    Equity: Ownership

    Finance: To borrow or take out a loan

    Fixed Expense: An expense that remains the same from month to month

    Flexible Expense: An experience that changes from month to month

    Income: Money received from wages, allowance, child support, interest or monetary gifts

    Liability: Money we owe or debt

    Liquidity: Readily available cash that you have on hand

    Need: Basic for survival such as shelter, food and clothes

    Net Worth: Assets – liabilities

    Wants: Those things that make our life more comfortable

  • Materials/Specialized Equipment Needed


    • computer with projector for multimedia presentations
    • computers with Internet access


    • calculators
    • enough dice for each group of students
    • filecards
    • journals
    • markers
    • notebook to organize copies of the handouts
    • paper for 3D graphic organizer
    • pens

    Technology Access

    • Glogster ™EDU
    • PowerPoint™

    • copies of handouts (see All Lesson Attachments tab)

  • Anticipatory Set

    Before class begins:

    Teacher should familiarize themselves with PowerPoints™, handouts and activities.

    Anticipatory Set Activity One

    As students enter the classroom, instruct them to take out a clean sheet of paper (or their journals) and make a list of ten wants/needs. Examples: house, food, microwave, make up, etcetera.

    Once the task is completed, collect lists and have all students stand. Read one item off of a list, example: a house. Ask students if they think this is a need or a want. If they think it is a need, have them move to the right side of the room. If it is a want, the left side of the room.

    Allow student discussion. Yes, shelter is a need, so a house would be considered a need, but what about a three story mansion? Stress the importance of being specific when describing wants/needs.

    Continue the activity with five or six additional items, each time allowing students to move to the right side of room if they think it is a need or to the right side of the room if they think it is a want. Discuss each item.

    After activity, return lists for revisions and have students label their items as wants or needs.

    Ask the following questions:

    • What areas did all or most students agree upon?
    • How are you unique and how do your priorities differ from your classmates?.
    • How might your priorities affect your spending habits?

    Anticipatory Set Activity Two

    Ask students to list in their journal at least ten things they value or are important to them. After they complete their lists, ask them to identify the items as monetary or relational. Have them count the items that cost money and the items that are relational.

    Ask them to answer the following questions:

    • What is most important to you? Wealth or Relationships?
    • What might this exercise tell you about what kind of a lifestyle that would make you happiest?
    • What careers might you consider that would support this lifestyle?

  • Direct Instruction with Special Education Modifications/Accommodations

    Financial stability does not happen by accident, it happens by careful planning. Careful planning helps you maximize your income. We will learn seven components of establishing a stable financial plan. Most people do not start with all the components in place. This is something you must work towards in order to achieve your financial goals.

    Direct Instruction Activity One:

    Introduce lesson objectives, terms and definitions and ask students to write terms on file cards or in their journals for study.

    Show PowerPoint ™ Financial Planning (see All Lesson Attachments tab) and ask students to complete Managing Your Finances Diagram (see All Lesson Attachments tab) with the seven components of a secure financial plan. Allow time for class discussion.

    See Guided Practice Activity One


    Direct Instruction Activity Two:

    Introduce additional terms and definitions to add to their file cards or journal.

    Present PowerPoint ™ Managing Your Finances Part II (see All Lesson Attachments tab) which focuses on budgeting. Allow time for questions, demonstrations and class discussion.

    See Guided Practice Activity Two

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, are not limited to:

    • encouraging participation
    • praising student
    • provide the student with a copy of the slide presentations

  • Guided Practice with Special Education Modifications/Accommodations

    Guided Practice Activity One:

    Distribute handout Financial Planning Notes (see All Lesson Attachments tab)
    Review slide presentation contents by having them complete Managing Your Finances Notes handout (see All Lesson Attachments tab) with a partner. These notes can later be used for taking the Managing Your Finances Quiz (see All Lesson Attachments tab) during Summative/End of Lesson Assessment.

    Challenge your students’ logical thinking skills with the Financial Math Challenge (see All Lesson Attachments tab).


    Guided Practice Activity Two:

    Distribute the Budget Scenarios (see All Lesson Attachments tab). Have each student roll a dice to determine which scenario they will budget for.

    Using the Budget Worksheet handout (see All Lesson Attachments tab) have students create a budget for the scenario. Remind them to use pencil on the budget so they can erase and adjust as needed. We are looking for a balanced budget so their expenditures should not exceed their income.

    Distribute the How Do We Compare handout (see All Lesson Attachments tab). Using calculators or the calculator on their phones and their budget sheets, have students figure out what percentages they spent on each area of their budget and compare it to the national averages.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, are not limited to:

    • encouraging participation
    • praising student
    • provide the student with a copy of the slide presentations
    • provide peer tutoring
    • allow extra time

  • Independent Practice/Laboratory Experience with Special Education Modifications/Accommodations

    Before class begins:

    Create a few examples of the 3D graphic organizer described below

    Provide students with a blank sheet of paper and instruct them to fold it “hot dog style” (lengthwise). Starting from the lengthwise open end, have them cut six evenly spaced slits, creating seven segments. This will become the front of their organizer. The entire back half is left intact. Instruct students to write the seven components of a secure financial planning on the outside of the seven segments. Underneath each segment, have them write an example of how they would implement that component in their personal financial plan. See photo below.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, are not limited to:

    • encouraging participation
    • allowing student to complete assignments at home
    • provide the student with a copy of the slide presentations
    • check for understanding

  • Lesson Closure

    Review lesson objectives, terms and definitions.

    Follow-up questions at the end of each class period may include answer and discussion to the following:

    • Briefly compare and contrast the difference between needs and wants.
    • Why is it important to create a budget?
    • What are the seven components of planning a secure financial future?
    • Why is it important for your budget to balance?

  • Summative/End of Lesson Assessment with Special Education Modifications/Accommodations

    Assessments during lesson:

    • Budget Worksheet (see All Lessons Attachment tab)
    • How do I Compare? (see All Lessons Attachment tab)
    • Financial Math Challenge (see All Lessons Attachment tab)

    At the end of the lesson, students will review for and take Managing Your Finances Quiz (see All Lessons Attachment tab) and write a one page reflection of what they have learned from this lesson and how they will apply it to their lives, now and in the future. Content of reflection may include how financial management is a journey and requires continual evaluation and readjustment.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • providing students with guiding questions
    • check for understanding
    • extended time
    • shortened assignments
    • used of positive reinforcement

  • References/Resources


    • Lowe, Ross. Consumer Education and Economics. 6th ed. N.p.: Glencoe/McGraw Hill, 2006. Print.
    • Madura, Jeff, Mike Casey, and Sherry J. Roberts. “The Financial Plan.” Personal Financial Literacy. Boston: Pearson, 2010. 23-29. Print


    • U.S. Bureau of Labor Statistics
      U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics, n.d. Web. 09 Oct. 2012.
  • Additional Required Components

    English Language Proficiency Standards (ELPS) Strategies

    • word wall
    • peer to read materials
    • shortened modified test
    • extra time for responses
  • College and Career Readiness Connection

    AchieveTexas Career Cluster Crosswalks

    The Career Cluster Crosswalks housed on the AchieveTexas website provide Texas teachers with a direct connection between their CTE course TEKS and the College and Career Readiness Standards (CCRS). Language Arts, Mathematics, Science, Social Studies, and Cross-Disciplinary integration are the focus of the CCRS. These college and career readiness standards are essential in the planning and delivery of CTE lessons. The extent to which the integration occurs is determined by the methods and strategies utilized by each teacher.

    Career Cluster Crosswalks for Education and Training, Hospitality and Tourism, and Human Services Career Clusters can be found at:

  • Other Essential Lesson Components

    Enrichment activity

    • Use a search engine to locate reliable financial websites and create a data base for your Dollars and Sense course.
    • Electronically create a trifold brochure describing how to apply the seven components of managing finances You may use Microsoft Word Trifold Brochure Template (see All Lesson Attachments Tab).
    • Scenario: You are a financial adviser for a newspaper column. Write questions and answers giving financial advice.
      Allow students to use to create a realistic looking newspaper column.

    Dollars and Sense Math Assessment Problems

    • (2) The student demonstrates management of financial resources to meet the goals of individuals and families across the life span. The student is expected to:
      • (A) evaluate the need for personal and family financial planning, including budgeting, expense records and maintaining economic self-sufficiency.

    Question 3. Aaron takes out a small business loan at the bank to help start a barbershop. He takes out $5,000.00 at an interest rate of 6% and doesn’t have to make a payment on the principle for 18 months. If he makes no payments during the 18 months, how much does he owe the bank if the 6% interest for the first 18 months is added?
    a. $ 5,400
    b. $ 7,200
    c. $10,400
    d. $30,000

    Answer: C

    TEDx Talks:

    TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event.

    The video below is related to this lesson. Allow students to view the video and lead a discussion concerning the TED Talk.

    • TEDxWallStreet – One Life-Changing Class You Never Took – Alexa Von Tobel
      Alexa von Tobel is the founder and CEO of which she has been developing and growing since 2006. LearnVest is the leading personal finance and lifestyle website that brings financial literacy to women. Since launching LearnVest, Alexa has been widely quoted as a personal finance expert and entrepreneur in top tier business and consumer publications including: New York Times, The Wall Street Journal, New York Post, BusinessWeek, Shape, Fast Company, Marie Claire, ForbesWoman, InStyle, People StyleWatch, Time Out New York, The Huffington Post, among many others.;search%3Aalexa%20von%20tobel

    Math Connections:

  • Family/Community Connection

    Family Project

    Students take their allowance and create a budget. Budget should balance their income with their expenses.

    Students could set up a savings account at a local bank or credit union.

  • CTSO connection

    Family, Career, Community Leaders of America (FCCLA)

    STAR Events

    Job Interview – An individual event that recognizes participants who use Family and Consumer Sciences and/or related occupations skills to develop a portfolio, participate in an interview, and communicate a personal understanding of job requirements.

    National Programs

    The FCCLA Financial Fitness national peer education program involves youth teaching one another how to make, save, and spend money wisely. Through FCCLA’s Financial Fitness program, youth plan and carry out projects that help them and their peers learn to become wise financial managers and smart consumers.

  • Service Learning Projects

    Service Learning

    Successful service learning project ideas originate from student concerns and needs. Allow students to brainstorm about service projects pertaining to lesson. For additional information on service learning see:


    • Develop a “Relay for Life” team and create a strategy to fundraise for the cause.

  • All Attachments