What are Income and Expenses? A Beginner’s Guide to Understanding Money Management Lesson

Students learn the essentials of managing finances, from understanding income sources to controlling expenses. They discover simple strategies for saving, avoiding debt, and planning for future financial goals. Explore the basics of managing finances with a focus on income, expenses, budgeting, and setting financial goals. Understand different ways to earn money, including passive income from investments like stocks and bonds, and the importance of saving for unexpected costs with an emergency fund. Additionally, learn how to avoid debt by balancing spending against income and strategies for increasing earnings. Mastering these skills can lead to smarter financial decisions and a more secure future.


Use this video lesson on the topic of income and expenses. Learn basic related concepts of

  • Income Types
  • Expense Management
  • Budgeting Techniques
  • Emergency Funds
  • Earning Income
  • Saving
  • Spending
  • Investing
  • Budgeting


7-12th grades. High School. Adult Education.


30-45 Minutes. It may be necessary to adjust the lesson plan and allocate more or less time to certain topics, depending on the needs and interests of the students. More in-depth lesson plan below will be longer.


Hand out the worksheet below (see the GET LESSON button near the bottom of the page).

Show students the video and have and have them complete the worksheet.  Review the questions on the worksheet.  For a more in-depth lesson, complete the lesson plan below.

What are Income and Expenses? A Beginner’s Guide to Understanding Money Management

After watching the video, ask students to summarize the main points made in the video.


Lesson Plan: What are Income and Expenses?


Overview: This lesson plan is designed to help students understand the basics of income and expenses, crucial concepts in personal finance. By the end of this lesson, students will be able to identify different types of income and expenses and apply this knowledge to create a basic budget.


  • Define and distinguish between different types of income and expenses.
  • Understand the impact of taxes on income.
  • Learn the basics of budgeting and setting financial goals.
  • Appreciate the importance of emergency funds and how to plan for unexpected expenses.

Materials Needed:

  • Video: “What are Income and Expenses? A Beginner’s Guide to Understanding Money Management”
  • Worksheets for budgeting exercises
  • Quiz on income and expenses (to be taken at the end of the lesson)

Lesson Duration: 45 minutes

Lesson Outline:

  1. Introduction (5 minutes)
    • Introduce the topic and its relevance to daily life.
    • Preview main concepts: income, expenses, budgeting.
  2. Video Viewing (10 minutes)
    • Watch the video “What are Income and Expenses? A Beginner’s Guide to Understanding Money Management”.
  3. Discussion (10 minutes)
    • Discuss the video content and clarify any concepts.
    • Address student questions or confusions.
  4. Activity: Budget Creation (15 minutes)
    • Students will use the worksheets provided to create a simple budget based on hypothetical income and expenses.
    • Facilitate discussions about choices and priorities in budgeting.
  5. Quiz and Review (5 minutes)
    • Administer a short quiz to assess understanding of the video’s content.
    • Review quiz answers and clarify any misunderstandings.

Discussion Questions:

  • What are the different types of income mentioned in the video? How do taxes affect your actual income?
  • Can you list some fixed and variable expenses from your own life?
  • Why is budgeting important? How does it help with financial planning?
  • What steps would you take if your expenses exceeded your income?
  • How can an emergency fund be beneficial in managing unexpected expenses?


Lesson Resources

Get Lesson


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Categories Budgeting, Credit, Debt, Earning Money, Saving & Investing, Spending Money, Taxes, Tags , , , , ,

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