budget - financial plan that helps you set aside money for specific purposes 

personal budget – total amount of money allocated for personal expenses, saving and investing 

expenses - cost to purchase an item or service 

goal – something a person plans for and works to attain  

short-term goal - can be reached in less than a year 

long-term goal - is reached in one to five years because it takes more time and money to complete 

personal goal – objective you aspire to achieve that gives your life direction, meaning and purpose 

income – payment received for goods or services, or from other sources such as rent or investments 

interest - the return earned on an investment; the fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal 

invest - to commit (money or capital) in order to gain a financial return 

need – a necessary good or service 

resource - a person, asset, material, or capital which can be used to accomplish a goal 

saving - setting money aside for future use 

tween – individuals 9-12 years old

The student will be able to:  

●        Identify financial goals 

●        Define investing 

●        Distinguish between a want and a need

●        Distinguish between a short-term and a long-term spending goal 

●        List six strategies to save money 

●        Analyze spending scenarios 

●        Create a spending plan/monthly budget to save for short-term and long-term spending goals 

100 minutes

• Poster (laminated) featuring a large tree trunk and branches
• Leaves – minimum of 1 per student
• Tape
• 8 ½" x 11" paper – 1 sheet per student
• Pencils
• Individual white boards and markers – 1 for each student OR journal to record responses
• Teacher created scenarios focused on students who have a goal requiring money, have access to money through work, gifts, allowances, etc. and that show how those individuals are spending and saving (or not)
• Sample Personal Budget Form that includes categories used by students and a space for listing goals that will require finances
• Spending/Earning Tracking Form

W = Review ways that middle school students can earn money/create an income.  Have each student write one way that he/she might earn money on a leaf.  Discuss responses.  Tell students that today they will discuss how to spend and save the money they might earn. Students will be evaluated during class discussions, scenario responses, monthly budget form and final evaluation using a graphic organizer.  

H = Display a large, laminated tree with no leaves.  Then, have each student tape his or her leaf on the tree.  Next, ask students what they might purchase with their earned money.  Remove leaves as students name items.  Point out that all the leaves are gone and ask students if they know of any ways to always keep a few leaves on the “money tree.” 

E = Money Tree, class discussion, think-pair-share, spending scenarios, personal budget completion, personal savings plan created 

R =  Reflect:  ways middle school students may earn money, Revisit: place leaves on tree and take away as students name things they would like to buy, Revise: teacher generated scenarios, Rethink: coming up with personal spending plan/budget 

E = Students will participate in class discussion, sharing their ideas and opinions, completing their personal budget plan and completing the graphic organizer as a final assessment. 

T =  Using sentence starters, flexible grouping, and teacher/students collaboration

O =  Alternating teacher led and student led discussions, and using individual, pair and group activities

1. Review ways that middle school students can earn money/create an income. 
2. Have each student write one way that he/she might earn or receive money on a leaf.  Discuss responses.  Then, have each student tape his or her leaf on the tree. 
3. Next, ask students to record on individual white boards items they might purchase with their earned money.  Call on individual students and remove leaves as students name items. 
4. Point out that all the leaves are gone, but there’s an emergency and we need some additional money immediately.  Ask students if they know of any ways to always keep a few leaves on the “money tree” for emergencies. 
5. Group students with partners for think-pair-share and have them record responses on white boards.  As pairs present answers, teachers can quickly see what % of students agree with the given response.
6. Explain that many people spend some of their income but save some as well.  People save money for future purchases, for big money items like college, cars, TVs and computers, for annual expenses such as auto or fire insurance, taxes, vacations, holidays and more. People also save for emergencies such as appliance breakdowns, accidents and work lay-offs.  People save for a time when their income will be limited such as retirement.   It’s important to always have some leaves on your money tree!
7. Ask students how they would decide how much money to spend and how much money to save.  Again, student partners can record answers on their white boards.  Answers will vary, but explain that most will fit into two categories:  immediate needs and wants and long term needs and wants. 
8. Teachers should create a chart for needs and wants on the board.  Ask students to share some student needs and list them on the chart.  Then, explain the difference between need and want.  For example, jeans may be a need, but designer jeans are a want.  Now, ask students to change needs to wants and use their responses to complete the chart.
9. Ask students what influences their needs and wants.  List responses.  Responses will vary and each might be discussed. 
10. Next, create and share a story of how goals might influence one’s perception of needs and wants.  For example, if a family is saving for a computer they might choose to give up eating out for a period of time in order to save the needed money.  The family needs to eat, and they could choose to prepare an inexpensive meal at home.  They want to eat out because it’s fun and less work.  BUT, because they have a goal they want to reach they will choose and be satisfied with cooking and eating at home.
11. Explain to students that setting goals is an important lifetime strategy.  Most individuals set short- and long-term goals.  Ask if these goals might require different strategies. 
12. Have students list goals that students might hope to reach.  Place them into short-term and long-term categories.
13. Ask students to name the benefits of setting goals and the disadvantages of not setting goals.  Note that different goals require different resources.  For example, if college is a goal, one will need to spend time to prepare academically and save money.  If a goal is to be a professional athlete, one will need time to develop sport specific skills as well as prepare academically and financially for college.  If a goal is to win a college scholarship, one might choose to become a community volunteer and study to gain entrance into the National Honor Society.  If a goal is to build a house for Habitat for Humanity, lots of people will be needed in addition to building supplies and land.   Note that many, but not all, goals will require that you plan ahead and save money.
14. Ask: What might you have to give up to reach your saving goals?  Student responses will vary, but the point to emphasize is that every time one makes a choice about spending or saving money, that person is making a trade-off.  If one chooses to go to a movie with a friend, that person may not have money to put towards their goal of buying a new skateboard.  If one puts half of all the money one receives as a gift in the bank, what might that person be giving up?  What might that person gain?  If one chooses to excel at a sport, that person will choose extra hours of practice. What might that person be giving up?  What might that person gain?
15. The teacher will present strategies for saving money.  These include creating a plan to earn money, determining needs and wants, trimming wants, creating a plan to save and invest money, and tracking spending and saving.  A tool that many individuals find helpful in this process is a budget.  A budget is simply a financial plan for managing money.  By creating a personal budget, you will have a plan for spending, saving and investing money.
16. Ask: Where is the best place to save money?  Answers will vary, but focus on advantages of a bank.  Money is out of sight so you won’t be tempted to spend it.  If the bank is closed your money may not be immediately available so you’ll have more time to reconsider the importance of your purchase.  You earn interest on your savings.  Banks are insured so your money is safe.  As your money grows, you may choose to invest some of your money in order to earn more money. 
17. In a class discussion, ask students to complete the phrase:  Investing is…
18. Teacher should distribute scenarios and ask groups of students to analyze the situation.  Determine how the individual is earning money, how the individual is currently spending money, what plan for saving money is in place, what appear to be the individual’s short- and long-term goals.  Then, ask the students to evaluate the success of the individual in reaching financial goals and to make recommendations for increasing the individual’s success.
19. Groups of students should report their findings.  After all scenarios have been reviewed groups should re-evaluate their recommendations and present any additional recommendations.
20. Next, provide each student with a sample monthly budget form.  The form should include a category for saving.  Students should write a minimum of two personal short-term and long-term goals on the form.  Next, give each student a predetermined amount of money received from allowance and gifts.  Ask that each student prepare a budget using their assigned amount of money and keeping their goals in mind.
21. Ask students to share some financial goals; then ask at their rate of saving, how long it will take to meet their goal.  Ask if they feel their spending/saving ratio is realistic.  Conclude by asking students to write a short paragraph about their budget.
22. As a final assessment, students will, individually, make a graphic organizer (see assessment section) and fill it out using the knowledge they’ve gained. 

●        Student participation in class discussions 

●        Student responses to spending scenarios 

●        Personal spending plan/budget 

●        Frayer Graphic Organizer – Fold an 8 1/2" x 11" piece of paper in half to create a 4 ¼" x 5 ½" rectangle

Directions for filling in the Frayer Graphic Organizer - Where the folds meet, fold paper to create a small triangle.  Open paper and you should view a diamond in the middle.  In the diamond, write "Money Matters." In one box, write "How Tweens Can Earn Money" and list at least five ways to do so.  In a second box write "My Savings Goals" and list at least two short-term and two long-term personal savings goals.  In a t,hird box, write "My Wants and Needs."  List at least three personal wants and three personal needs.  Explain what you would do to acquire the money to meet at least one want and one need.  

In the fourth, and final box, write My Savings Plan and ask students to explain how they plan to start saving money.

 www.admongo.gov

 http://www.nfikidscount.org/ a complete financial literacy resource for elementary students.