Week 7: Money Management
Teaching money management to middle school students is an important life skill that can set them up for financial success in the future. Bellow are the concepts that students will be learning.
Budgeting:
To teach students how to create a simple budget. Starting with their income, which may come from allowances, gifts, or part-time jobs, and then help them list their expenses, such as school supplies, snacks, and entertainment.
We will emphasize the importance of tracking and categorizing expenses to understand where their money is going.
Saving:
To encourage students to set savings goals. Whether it's for a new gadget, a trip, or a future college fund, having goals can motivate them to save.
Teaching them about the power of compound interest and how saving money can lead to more significant wealth over time.
Needs vs. Wants:
Help students distinguish between needs (essentials like food, clothing, and school supplies) and wants (non-essentials like video games or designer clothes).
Encourage them to prioritize spending on needs before wants.
Allowances:
If students receive allowances, discuss the importance of managing that money wisely. They can allocate a portion for saving, spending, and giving (e.g., to charity).
Decision-Making:
We will discuss the concept of making informed financial decisions. Teach them to research before making a purchase, compare prices, and look for discounts or deals.
Banking:
If your students have access to a bank account, we will explain how it works, including deposits, withdrawals, and the use of debit cards.
Encouraging them to save a portion of their allowance or earnings in a bank account.
Tracking Expenses:
We will help students keep a spending diary or use budgeting apps or spreadsheets to track their expenses and income regularly.
Review their financial records together to identify areas for improvement.
Avoiding Debt:
We will discuss the risks of borrowing money and accumulating debt. Teach them about credit cards, loans, and the importance of responsible borrowing.
Investing:
Introduce the concept of investing and how it can help grow wealth over time. You can use simple examples like investing in stocks or bonds.
Goal Setting:
Encourage students to set both short-term and long-term financial goals. Discuss the steps needed to achieve these goals.
Delayed Gratification:
We will teach the importance of delayed gratification, which means waiting to purchase something they want until they have enough money saved for it.
Taxes:
The idea of taxes and how they impact income. Explaining basic concepts like income tax, sales tax, and how they fund government services.
Role-Play:
Engage students in real-life scenarios where they have to make financial decisions, such as planning a budget for a family vacation or deciding how to spend their allowance.
We will use real-life examples, interactive activities, and age-appropriate resources to help them grasp these money management concepts effectively. The skills they learn now will serve them well in the future.