Consumer.gov: Managing Your Money

Activity: “Where Does My Money Go?”

1. On the board, write:

• Rent
• Food
• Phone
• Transportation
• Entertainment
• Savings
• Students estimate how much a working adult might spend monthly in each category.

2. In pairs, students discuss:

• Do you currently have a bank account?
• What challenges have you had managing money?
• Have you ever used cash only? Why?

Whole-Group Debrief:
Discuss:

• Why might someone need a bank account?
• What problems can happen without one?

Transition:
“Today we are going to learn how to open a bank account, manage money wisely, and avoid common financial traps.”

By the end of this lesson, students will:

• Explain the difference between banks and credit unions.
• Compare checking and savings accounts.
• Identify steps to open a bank account.
• Create a basic budget.
• Recognize risky financial products (payday loans, title loans).
• Identify ways to protect themselves from scams and identity theft.

Why This Matters:
Financial literacy improves economic stability and protects individuals from fraud and debt traps. According to the Federal Trade Commission (FTC), understanding basic financial tools helps consumers avoid costly mistakes and scams.

Resource for instructor background:
Federal Trade Commission – Consumer Education
https://www.consumer.ftc.gov

Part 1: Banking Basics (Mini-Lesson + Think-Pair-Share)

1. What Are Banks and Credit Unions?

• Banks: For-profit financial institutions.
• Credit Unions: Not-for-profit, member-owned institutions.

Interactive Task:

Students complete a comparison chart in pairs:

Feature                                          Bank                                    Credit Union

Ownership

Fees
 
Membership Required?
 
 
Discuss findings.

 
2. Checking vs. Savings Accounts

Checking Account                                          Savings Account

Used for daily spending                                    Used to store money
Debit card access                                             Usually limited withdrawals
May have monthly fees                                     Often earns interest

Quick Activity:

Students decide:

• Which account would you use to pay rent?
• Which account would you use to save for a car?
   
  Part 2: Opening a Bank Account (Listening & Cloze Activity)

Students navigate to:
https://www.consumer.gov/section/managing-your-money

They locate the section on “Opening a Bank Account.”

Instructor provides a short cloze worksheet:

Example:

1. You need a government-issued ________ to open an account.
2. Some banks require a minimum ________.
3. You may need a Social Security number or ________.

Students listen/read and complete blanks.

Review answers together.

 
Part 3: Budgeting Activity – “Make a Budget”
Distribute the Make a Budget Worksheet.

Scenario:
Maria earns $2,400 per month. Her expenses include:

• Rent: $1,000
• Utilities: $150
• Phone: $70
• Transportation: $200
• Food: $400
• Other: $250

Students calculate:

• Total expenses
• Remaining balance
• Amount to save (recommend 10%)

Pair Reflection:

• What happens if Maria overspends?
• Where could she reduce costs?

Reference:
Consumer.gov Budget Tool
https://www.consumer.gov/articles/1002-making-budget

P – Practice (Collaborative & Real-World Application) 

Financial Scenario Stations (Group Work)

Divide students into groups. Each group receives one scenario:

1. Using Debit Cards vs. Prepaid Cards
2. Payday Loan Offer
3. Sending Money Overseas
4. Identity Theft Alert
5. Car Title Loan Advertisement

Groups answer:

• Is this safe?
• What are the risks?
• What would you recommend?

Each group presents solutions.

Instructor highlights:

• Payday loans often carry extremely high interest rates.
• Title loans risk losing your vehicle.
• Always review fees before sending money overseas.
• Protect personal information.

Reference:
FTC Consumer Protection Information
https://consumer.ftc.gov

Evaluation (Formative Assessment)
Exit Ticket (Individual)

Students answer:

1. What is one difference between a bank and a credit union?
2. What is one reason to use a savings account?
3. Name one risk of payday loans.
4. List two things needed to open a bank account.
5. Why is budgeting important?

Optional:
Students draft one personal financial goal for the next 3 months.

Homework or Extension Options:

1. Compare three local banks or credit unions:

• Monthly fees
• Minimum balance
• ATM access
• Online banking

2. Create a personal monthly budget using actual or sample income.

3. Research one consumer scam and explain how to avoid it.