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Session 3 Study Guide: Budgeting Basics

Money, Values & You — A Financial Literacy Course for 6th Graders

Key Topics

TopicDetails
What is incomeWhat is income: money that comes in (allowance, gifts, chores, jobs)
What are expensesWhat are expenses: money that goes out (food, supplies, entertainment)
Fixed vs. variable expensesFixed vs. variable expenses
Tracking where your money actuTracking where your money actually goes
What a budget isWhat a budget is: a plan for your money
Budget categoriesBudget categories: saving, spending, giving
The idea of dividing money intThe idea of dividing money into portions
Building a mock budget with a Building a mock budget with a $40/month allowance
What happens when expenses excWhat happens when expenses exceed income
The basics of debtThe basics of debt: borrowing money you do not have
Why debt growsWhy debt grows: the cost of borrowing
Getting back on trackGetting back on track: adjusting your budget
What is SadaqahWhat is Sadaqah: voluntary charitable giving in Islam
Why giving should be planned, Why giving should be planned, not leftover
Making charity a habit, not a Making charity a habit, not a reaction
How even small amounts of giviHow even small amounts of giving make a difference

Lesson Summaries

Lesson 1: Income and Expenses

Understand where money comes from and where it goes. Learn to track the flow of money in and out.

Lesson 2: Building a Budget

Create your first budget using simple categories. Learn the basics of balancing income and spending.

Lesson 3: When the Budget Breaks

What happens when you spend more than you earn? Explore overspending, debt, and how to get back on track.

Lesson 4: Sadaqah as a Budget Line

In Islam, giving is not an afterthought — it is planned. Learn why Sadaqah belongs in your budget from the start.

Review Questions

  1. What is income?
  2. What are expenses?
  3. What is the difference between fixed and variable expenses?
  4. Why is it important to track where your money goes?
  5. What is a budget?
  6. Name three common budget categories.
  7. If you had $40/month, how might you divide it?
  8. Why is it better to budget before you spend rather than after?
  9. What happens when you spend more than you earn?
  10. What is debt?
  11. Why does debt grow over time?
  12. How can you fix a broken budget?
  13. What is Sadaqah?
  14. Why should giving be a budget line rather than an afterthought?
  15. How can a 6th grader practice planned giving?
  16. What does it mean to make charity a habit?