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Intro to Budgeting

Help students understand how to plan their money by creating a simple budget based on everyday income and expenses. This classroom-ready lesson includes discussion prompts, a sample scenario, and a printable worksheet.

Middle school students working together on a personal budget activity in class
💡 Tip for Teachers: Use real-world examples like fast food jobs, allowance, or part-time gigs to boost student engagement.
✔ Published by Money Fit Education Team Updated July 2025
Quick Info: Intro to Budgeting Lesson
  • Grade Level: 7–9 (Middle School)
  • Time Needed: 45 minutes
  • Prep Required: Low – Print worksheets and preview discussion prompts
  • Materials: Budget worksheet (included), pens or pencils, optional projector
  • Standards Aligned: Yes – National Personal Finance Standards (Jump$tart, CEE)
  • Formats Available: Printable PDF, Google Slides

Intro to Budgeting: Step-by-Step Lesson Plan

  1. Start with a Class Discussion (5–10 min)
    Ask students: “What do you think a budget is?” or “Why might someone need one?” Jot their responses on the board and introduce the concept of income vs. expenses.
  2. Explain Key Terms (5 min)
    Define income, fixed vs. variable expenses, and needs vs. wants. Use examples that relate to their lives (e.g., allowance, part-time jobs, phone bills).
  3. Introduce the Budget Scenario (2 min)
    Explain that students will complete a sample budget based on a fictional teen's monthly income and spending needs.
  4. Distribute and Guide Worksheet Activity (15–20 min)
    Pass out the worksheet and walk students through the first few lines together. Then allow time for students to complete the rest individually or in pairs.
  5. Review and Reflect (10 min)
    Go over the worksheet as a class. Ask: “What surprised you?” “What would you do differently?” Encourage reflection on real-life application.

Assessment Options

  • Exit Ticket: Ask students to write down one thing they learned and one budgeting decision they would make differently next time.
  • Discussion Questions:
    • What is the difference between a want and a need?
    • Why is it important to track your spending?
    • How can budgeting help someone avoid debt?
  • Worksheet Review: Collect and review the budgeting worksheet for accuracy and application of concepts.
  • Peer Pair-and-Share (Optional): Have students compare budget choices with a partner and explain their reasoning.

Extensions & Differentiation

  • For Early Finishers: Ask students to create a second budget using a different income scenario or unexpected expense (e.g., medical bill, car repair).
  • For Group Work: Have students collaborate in pairs or small teams to create a shared monthly budget for a fictional household.
  • For Extra Challenge: Introduce saving goals or debt repayment as new budget categories and ask students to rebalance accordingly.
  • For Real-World Connections: Invite students to track their own spending for a week and compare it to a budget they create.
  • For Diverse Learners: Offer a color-coded or partially completed version of the worksheet. Provide verbal walkthroughs or video explanations as needed.

Downloadable Resources

Standards Alignment

This lesson aligns with national financial literacy standards developed by the Jump$tart Coalition and the Council for Economic Education (CEE).

View Specific Standards
  • CEE 6.1: Develop a plan for spending and saving.
  • CEE 6.4: Identify the opportunity cost of financial decisions.
  • Jump$tart Spending 1: Develop a personal spending and savings plan.
  • Jump$tart Spending 3: Describe how income and expenses affect the budget.

Frequently Asked Questions

Do I need to have a finance background to teach this lesson?
Not at all! This lesson is designed to be simple, approachable, and flexible—no prior financial expertise is required.
Can this lesson be taught in under an hour?
Yes. The lesson is designed to fit within a standard 45–50 minute class period. If you're short on time, you can complete the discussion and worksheet activity over two shorter sessions.
Is this lesson aligned to national financial literacy standards?
Yes. The lesson aligns with standards set by the Jump$tart Coalition and the Council for Economic Education. You can view the specific standards above.
Can I use this with special education or ELL students?
Absolutely. The lesson includes visuals, simplified language, and a worksheet that can be adapted for different learners. Differentiation tips are provided in the Extensions section.
Is the worksheet editable?
The PDF version is printable and fillable by hand. You can also request a Google Docs version for classroom customization.

Have a Lesson Request or Classroom Question?

We're always building new lessons to support educators like you. If there's a topic you'd like us to cover—or if you have a suggestion or question about this activity—we’d love to hear from you.

Email the Education Team
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About the Author

Todd Christensen is the Education Manager at Money Fit and a nationally recognized financial educator, author, and speaker. He develops Money Fit’s financial education programs and leads workshops and credit counseling sessions for individuals and groups across the country.

In 2014, Todd published his first 5-star-rated book, Everyday Money for Everyday People, drawn from stories and insights collected from nearly 1,000 workshops he has facilitated on budgeting, credit, debt reduction, saving, and identity protection.

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NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

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NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

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The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)