Budgeting · Video Lesson
How to Make a Budget — 5 Steps
A budget is simply a plan for your money. This lesson walks students through five clear steps to build one: calculate income, list expenses, compare and set savings, track spending, and review and adjust — the foundation of taking control of personal finances.
For Teachers
Lesson at a glance
- Topic
- Budgeting
- Grade Level
- Grades 7–12
- Resource Type
- Video Lesson + Worksheet
- Estimated Time
- 30–45 minutes
- Format
- Class discussion + budgeting activity
- Materials
- Video, worksheet, calculators, whiteboard
What Students Learn
Learning objectives
- Define a budget and explain why it helps you reach financial goals
- Calculate net income from wages and other sources
- Separate fixed expenses from variable expenses
- Balance a budget so income equals expenses plus savings
- Explain why tracking and regularly reviewing a budget matters
Video Lesson
Watch: How to Make a Budget — 5 Steps
Materials
What you’ll need
- Internet access for the video
- Printed copies of the worksheet (one per student)
- Calculators
- Whiteboard or projector to build a sample budget together
Key Terms
Vocabulary
- Budget
- A plan for how you will spend and save your money over a period of time.
- Income
- Money you receive from wages, jobs, or other sources.
- Net income
- Income left after taxes and other deductions are taken out.
- Fixed expense
- A cost that stays about the same each month, like rent or a car payment.
- Variable expense
- A cost that changes month to month, like groceries or entertainment.
- Savings
- Money set aside instead of spent, often toward a goal or emergencies.
- Needs vs. wants
- Essentials you must pay for versus things you would like but can cut.
For Teachers
Lesson plan
Estimated time: one 30–45 minute class period.
Lesson sequence
- Introduction (5 min). Ask students where they think their money would go if they earned $100 this week. Introduce a budget as a plan that answers that question on purpose.
- Watch the video (8 min). Play the lesson video. Ask students to note the five steps.
- Walk the 5 steps (15 min). Build a sample weekly budget on the board: (1) calculate income, (2) list expenses (fixed then variable), (3) compare and set savings so income = expenses + savings, (4) track spending, (5) review and adjust.
- Worksheet (8 min). Students complete the worksheet based on the video.
- Wrap-up (4 min). Ask which step they think is hardest to stick to and why.
Activity
- Build your own. Students draft a simple monthly budget from a given income and a list of expenses, then identify where they could cut to add to savings.
Assessment
Assess participation, the budget activity, and the completed worksheet.
Discussion
Discussion questions
- Why should income equal expenses plus savings in a balanced budget?
- What is the difference between a fixed and a variable expense? Give an example of each.
- Which expenses are usually easiest to cut when a budget doesn’t balance?
- Why is tracking your spending just as important as making the budget?
- How might your budget need to change if your income or expenses change?
Printable Worksheet
How to Make a Budget — Student Worksheet
Short-answer worksheet based on the video for students to complete and discuss.
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