Lesson 1: Income and Expenses

About 30 minutes — Discussion-based lesson

What You Will Learn

This lesson covers:

What is income: money that comes in (allowance, gifts, chores, jobs)
What are expenses: money that goes out (food, supplies, entertainment)
Fixed vs. variable expenses
Tracking where your money actually goes

What is income: money that comes in (allowance, gifts, chores, jobs)

This section covers the key ideas about what is income: money that comes in (allowance, gifts, chores, jobs). Discuss with your group or family and explore the concepts together.

What are expenses: money that goes out (food, supplies, entertainment)

This section covers the key ideas about what are expenses: money that goes out (food, supplies, entertainment). Discuss with your group or family and explore the concepts together.

Fixed vs. variable expenses

This section covers the key ideas about fixed vs. variable expenses. Discuss with your group or family and explore the concepts together.

Tracking where your money actually goes

This section covers the key ideas about tracking where your money actually goes. Discuss with your group or family and explore the concepts together.

Check Your Understanding

1. What is income?

Answer: Income is money that comes in. For a 6th grader, this might include allowance, gift money, money earned from chores, or birthday cash.

2. What are expenses?

Answer: Expenses are money that goes out — anything you spend money on, from snacks to school supplies to gifts for friends.

3. What is the difference between fixed and variable expenses?

Answer: Fixed expenses stay the same each month (like a phone plan). Variable expenses change (like how much you spend on snacks or entertainment).

4. Why is it important to track where your money goes?

Answer: Because most people do not realize how much they spend on small things. Tracking helps you see patterns and make better choices.

Key Takeaways

What is income: money that comes in (allowance, gifts, chores, jobs)
What are expenses: money that goes out (food, supplies, entertainment)
Fixed vs. variable expenses
Tracking where your money actually goes

Ready for More?

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Continue to Lesson 2: Building a Budget

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