Session 3 · Money, Values & You
Budgeting
A plan for every dollar — before it disappears
6th Grade Financial Literacy · 90 minutes
Income vs. expenses 3-bucket system Budget challenge Surprise expense
Today's Plan
Here's What We're Doing
- Opening hook — plan $50 together (5 min)
- Income vs. expenses (15 min)
- Building a budget — the 3-bucket system (15 min)
- Budget Challenge activity (20 min)
- When budgets break (15 min)
- Journal prompt (10 min)
- Recap & preview (10 min)
Knowing the plan = no surprises
Opening Hook
$50 Right Now...
If I gave you $50 today — what's the first thing you'd buy?
Now: what if you got $50 every single week? Would you spend it the same way?
A budget is just a plan.
Like a map for your money. Without one, you wander.
Lesson 1 · Income & Expenses
Money In vs. Money Out
Income
Money coming IN
- Allowance
- Gifts
- Side jobs / earnings
Expenses
Money going OUT
- Food & snacks
- Transport
- Entertainment, clothes
Lesson 1 · Fixed vs. Variable
Two Types of Expenses
Fixed
Same amount every time
Phone plan · Bus pass · Rent
Variable
Changes month to month
Snacks · Entertainment · Clothes
Fixed = easy to plan. Variable = where your budget gets flexible (and risky).
Lesson 2 · The Budget Formula
The Math Is Simple
Income − Expenses = Surplus or Deficit
Surplus
Income > Expenses
Money left over!
Deficit
Expenses > Income
You need to adjust!
Lesson 2 · Budget Plan
The 3-Bucket System
Needs
~50% of income
Food, transport, essentials
Wants
~30% of income
Fun, games, extras
Savings + Giving
~20% of income
Future self + community
These are guidelines, not rules. Adjust for your real life.
Brain Break
Stand Up & Stretch!
Turn to your neighbor and name one thing you spend money on every week.
Is it a Need or a Want? (Remember last session?)
30 seconds. Go!
Budget Challenge
Plan Your $200 Month
- You have $200/month income
- Fixed costs = $75 (lunch $40 + phone $20 + bus $15)
- You have $125 leftto allocate across categories
- Categories: Clothes, Entertainment, Savings, Sadaqah, Snacks, Hobbies, Emergency Fund
- Every dollar must go somewhere — nothing left unplanned!
You have 8 minutes — GO!
Budget Twist!
Surprise!
Your phone screen cracked.
Repair cost: $30
Go back to your budget — where does the $30 come from?
Something has to give. What do you cut?
Activity Debrief
Let's Talk About It
- Where did the $30 for the repair come from?
- What did you have to cut? How did it feel?
- Did anyone set aside an emergency fund? (Smart!)
- What would you do differently next month?
Key insight: Unexpected expenses happen to everyone.
A good budget has a little buffer for surprises.
Lesson 3 · When Budgets Break
Budgets Break — That's OK
- An unexpected expense = instant deficit
- Options: cut elsewhere · earn more · dip into savings
- An emergency fund exists just for this moment
- Even $5/month saved = $60/year cushion
A broken budget isn't failure. It's information. Adjust and keep going.
Islamic Perspective
Sadaqah as a Budget Line
- Giving is a plan, not an accident
- Set aside giving first — before discretionary spending
- Even $1/week = $52/year for someone in need
- Sadaqah Jariyah = ongoing charity (wells, schools, knowledge)
"The best charity is that given when one has little." — Prophet Muhammad ﷺ
Journal Time
Take 8 Minutes...
"If I had $100 every week, how would I split it? Write your actual budget."
- Write real dollar amounts — make it your actual plan
- Include savings AND giving
- No wrong answers — this is YOUR plan
Session 3 · Wrap Up
What We Learned Today
Income comes in. Expenses go out. The gap = surplus or deficit.
The 3-bucket system: Needs / Wants / Savings+Giving.
Unexpected expenses happen — build a buffer.
Sadaqah is a planned budget line, not an afterthought.
A broken budget is information — adjust & keep going.
Next session: SAVING & GOALS — how to make money work for your future