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EDUC 2220- Educational Technology Lesson Plan

Developing a Financial Plan - Goals and Making a Budget

David J. Hatgas
Financial Management 12th grade

Common Core Standards:

National Standards:

Standard 1. Recognize the responsibilities associated with personal financial decisions.

Standard 4. Make criterion-based financial decisions by systematically considering alternatives and
consequences.
Standard 8. Use a personal financial plan.

Ohio Standards:

TOPIC: FINANCIAL RESPONSIBILITY AND MONEY MANAGEMENT Responsible personal

finance decisions are based upon reliable information and used to reach personal goals.

CONTENT STATEMENTS:
14. A personal financial plan includes financial goals and a budget, including spending on goods and
services, savings and investments, insurance, and philanthropy.

TOPIC: SAVING AND INVESTING Saving and investing strategies help individuals achieve
personal financial goals.

CONTENT STATEMENTS:
16. Saving and investing help to build wealth.

Lesson Summary:

A budget lets you should know exactly what happens to your cash and should allocate dollar amounts for
spending based on financial goals and obligations. This lesson will assist students to understand: 1.) the
components of a budget, 2.) how to control cash inflows and outflows and 3.) gain an understanding of
effective decision making in spending and saving to meet financial goals.

Estimated Duration:
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This lesson will take two hours and will be divided up into two class periods. Any unfinished work during
these sessions will be completed as a homework assignment each night. To complete this unit a Personal
Budget assignment assigned where students will be asked to create their own monthly budget and keep
financial records for a 3-month period.

Commentary:

We will begin by reflecting on outcomes from a previous class where we learned why short term, medium term
and long term financial goals are important to achieving financial success. Students will start the lesson with a
review the financial goals they established for themselves during an earlier lesson.
This lesson will concentrate on Making a Budget. It will allow students to develop a plan of action to achieve
their goals by creating a realistic, accurate and practical monthly budget for spending and savings. Each
student will be following their actual income and expenses, then compare those results versus their monthly
budget. I expect keeping financial records and demonstrating effective decision making in spending and saving
to be the most challenging aspects of the lesson.
To hook or engage the students we will use a group exercise on Day 1 where they will review three budgets
and decide which budget is most effective in meeting the owners financial goals. This will promote
engagement and allow them to begin addressing the key concepts of these lessons.

Instructional Procedures:

Day 1:

15 minutes Discuss and understand cash flow and budgeting and their relationship to meeting financial goals

1.) Reflect on and discuss the financial goals each student has previously created.
2.) Discuss how financial goals are achieved by controlling cash inflows, outflows and saving with a plan
called a budget
3.) Explain
a. The concept of cash flow - dollar amounts coming in (income and earnings) and dollar
amounts going out (expenses and spending)
b. How a budget allows you to allocate expenses and spending to different categories based on
obligations and financial goals

20 minutes Discuss and understand cash flow and saving and investments and their relationship to
meeting financial goals

1.) Explain the concept of savings and investments to support financial goals
2.) Ask the students to create two lists 1.) income money earned (inflows) and 2.) expenses money
spent over the past month

Day 1 (continued):
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3.) Remind them that this activity is called cash flow and will be important to determine, monitor and
adjust a budget
4.) Ask them to add each column and subtract expenses from income the amount left over should be
used for savings and investments that support their financial goals

20 minutes Budget Analysis Exercise

1.) Distribute the budget analysis exercise to the students

2.) Tell them they will complete a review three budgets and decide which budget is most effective in meeting
the owners financial goals.
3.) Ask the students to assemble in groups of 4 6 to complete the following:
a. Assess which budget is most and least successful in meeting the owners financial goals.
b. Discuss and identify on the smartboard what adjustments could be made for improvement
4.) Invite each group to share and discuss their work using notes from their smartboard

Day 2:

15 minutes Reflection and review on the terms and concepts of the previous days learnings:

Financial goals
Cash flow
Budgeting
Keeping records
Spending and saving
Savings and investments
Why effective decision making in spending and savings is required to meet financial goals.

45 minutes Personal Budget Assignment Roll out

1. Explain that students will be creating their own budget and tracking results for the next 3 months
2. The goal is to move them closer to meeting the financial goals they established in previous class
sessions
3. Students will be given the task to make any needed adjust to their spending to meet their financial goals
4. Review the personal budget assignment
a. Part 1 Complete a 6-month budget homework assignment
b. Part 2 - Review results, adjust and submit to the discussion board on the 5th day after each
month for the next 3 months
c. Part 3 Students will present their results to the class teacher to provide a template.
d. The assignment has total of 240 available points. Points available each month is as follows:
Months budget - 10
Months current actuals - 10
Months current variance 10
Next months projected budget 10
Day 2: (continued)

5.) Allow students to work independent to get started on Part 1 of the budgeting spread sheet provided
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electronically to each student Move around the room to assist students as needed

Pre-Assessment:

Cash flow - do students see the full scope of their spending? Can they identify any patterns that can be altered
to help them achieve their financial goals faster? On day 1 each student is will be asked to create two lists 1.)
income money earned and 2.) expenses money spent over the past month. This in class assignment will be
used to assess the students understanding of where and how to identify opportunities to improve spending
and its link to attaining financial goals.

Scoring Guidelines:
The teacher will observe and use their judgement to assess the students understanding of cash flow i.e. income
money earned and expenses money spent.

Post-Assessment:
A multiple-choice exam will follow the completion of the personal budget assignment to assess understanding
and mastery. A total of 100 pts is available - 25 questions @ 4pts each.

Scoring Guidelines:
Scoring criteria for the post assessment exam will be as follows:

A 100 - 91
B 90 - 81
C 80 - 71
D 70 - 61
F 60 - 0

Differentiated Instructional Support

Gifted students will be used to provide personalized tutoring during class time to students that are struggling
with the material.

Extension
National Standards for Financial literacy -
http://councilforeconed.org/resources/type/standards/

Ohio Standards for Economics and Financial Literacy -

http://ims.ode.state.oh.us/ODE/IMS/ACS/

Homework Options and Home Connections

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Budget assignment - budgeting spread sheet provided on an excel spreadsheet to each student

Part 1 Complete a 6-month budget

Part 2 - Review results and adjust spending and submit updated spread sheets after each of the next 3
months and post on a discussion board by the 5th day of the next month.
Part 3 Students will present their final results and learnings to the class via power point

Interdisciplinary Connections - none

Materials and Resources:

* Indicates use of technology for in class activities, homework and to share learnings

For teachers Teacher text and workbook

Classroom Budget Analysis Exercise Excel *
Personal Budget Assignment template in Excel *
Final Presentation of Budget Assignment template in Power point *
Discussion Board use of video links to post assignments and work
instructions *
Smart board (in class assignment of budget analysis) *
PC and TV monitors (in class as needed to view student and teacher work
assignments) *

For students Student text and workbook

I pad or PC for in class and homework*
Discussion Board access assignments and post completed assignments to
share with classroom*
Personal Budget Assignment Excel *
Final Presentation of Budget Assignment - Power point *
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Key Vocabulary

Financial goals
Budget
Cash flow
Record keeping
Income
Expenses
Savings and investments