Session 3 ยท Money, Values & You
Budgeting ๐ฐ
A plan for every dollar โ before it disappears
6th Grade Financial Literacy ยท 90 minutes
๐ Income vs. expenses
๐ชฃ 3-bucket system
๐ฎ Budget challenge
โก Surprise expense
Today's Plan
๐ Here's What We're Doing
- ๐ฏ Opening hook โ plan $50 together (5 min)
- ๐ Income vs. expenses (15 min)
- ๐ Building a budget โ the 3-bucket system (15 min)
- ๐ฎ Budget Challenge activity (20 min)
- ๐ When budgets break (15 min)
- โ๏ธ Journal prompt (10 min)
- ๐ Recap & preview (10 min)
Knowing the plan = no surprises ๐
Opening Hook
$50 Right Now... ๐ต
If I gave you $50 today โ 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 ยท Income & Expenses
Money In vs. Money Out
โ
Income
Money coming IN
- Allowance
- Gifts
- Side jobs / earnings
โก๏ธ Expenses
Money going OUT
- Food & snacks
- Transport
- Entertainment, clothes
Lesson 1 ยท Fixed vs. Variable
Two Types of Expenses
๐ Fixed
Same amount every time
Phone plan ยท Bus pass ยท Rent
๐ Variable
Changes month to month
Snacks ยท Entertainment ยท Clothes
Fixed = easy to plan. Variable = where your budget gets flexible (and risky).
Lesson 2 ยท The Budget Formula
The Math Is Simple
Income โ Expenses = Surplus โ
or Deficit โ ๏ธ
Surplus
Income > Expenses
Money left over!
Deficit
Expenses > Income
You need to adjust!
Lesson 2 ยท Budget Plan
The 3-Bucket System ๐ชฃ๐ชฃ๐ชฃ
๐ Needs
~50% of income
Food, transport, essentials
๐ฎ Wants
~30% of income
Fun, games, extras
๐ฐ Savings + Giving
~20% of income
Future self + community
These are guidelines, not rules. Adjust for your real life.
โก Brain Break
Stand Up & Stretch! ๐ง
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!
๐ฎ Budget Challenge
Plan Your $200 Month
- ๐ต You have $200/month income
- ๐ Fixed costs = $75 (lunch $40 + phone $20 + bus $15)
- ๐ญ You have $125 left to allocate across categories
- ๐ Categories: Clothes, Entertainment, Savings, Sadaqah, Snacks, Hobbies, Emergency Fund
- โ๏ธ Every dollar must go somewhere โ nothing left unplanned!
โฑ๏ธ You have 8 minutes โ GO!
โก Budget Twist!
Surprise! ๐ฑ
Your phone screen cracked.
Repair cost: $30
Go back to your budget โ where does the $30 come from?
Something has to give. What do you cut?
Activity Debrief
๐ 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 ยท When Budgets Break
Budgets Break โ That's OK ๐
- An unexpected expense = instant deficit
- Options: cut elsewhere ยท earn more ยท 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 ๐คฒ
- Giving is a plan, not an accident
- Set aside giving first โ 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." โ Prophet Muhammad ๏ทบ
โ๏ธ Journal Time
Take 8 Minutes...
"If I had $100 every week, how would I split it? Write your actual budget."
- ๐ Write real dollar amounts โ make it your actual plan
- Include savings AND giving
- No wrong answers โ this is YOUR plan
Session 3 ยท Wrap Up
What We Learned Today ๐
โ
Income comes in. Expenses go out. The gap = surplus or deficit.
โ
The 3-bucket system: Needs / Wants / Savings+Giving.
โ
Unexpected expenses happen โ build a buffer.
โ
Sadaqah is a planned budget line, not an afterthought.
โ
A broken budget is information โ adjust & keep going.
Next session: SAVING & GOALS โ how to make money work for your future ๐ฏ