Budgeting and managing money
Money lets us exchange goods and services without bartering, but using it well means planning ahead — that is what budgeting is for.
Part of your national curriculum
- Financial capability: Understand the functions and uses of money, the importance and practice of budgeting, and managing risk
Lesson overview
What you'll learn in this lesson
Understand the functions and uses of money, the importance and practice of budgeting, and managing risk
Key learning points
- • What money is for
- • Building a budget
- • Managing risk
This lesson at a glance
- 20 minutes
- 16 parts to scroll through
- 3 quick checks
- Marked quiz at the end
- Gentle pace: short sittings with pauses
Words to know
Scroll down — the lesson carries on below
Watch & discover
Part 1 of 16
Visual introductionPicture this
Budgeting and managing money
Money lets us exchange goods and services without bartering, but using it well means planning ahead — that is what budgeting is for.
In a nutshell
Understand the functions and uses of money, the importance and practice of budgeting, and managing risk
Learning cycle
Part 2 of 16
Learning cycle 1 of 2
Part 1 · What money is for
A short piece of teaching, then a check to make sure it has landed.
Explore the idea
Part 3 of 16
Learn
What money is for
Money works as a medium of exchange, a way of storing value, and a unit of account for comparing prices. Before money, people bartered goods directly, which only worked if both sides happened to want what the other had.
Reset break
Part 4 of 16
Pause
That's sitting 1 of 4 done
Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.
Explore the idea
Part 5 of 16
Learn
Building a budget
A budget lists expected income against planned spending over a period, such as a month, so you can see whether you are likely to have money left over or run short. Good budgets separate essential spending (like travel or rent) from discretionary spending (like games or takeaways), and include a bit set aside for saving or emergencies.
Quick check
Part 6 of 16
Quick check
Part 7 of 16
Reset break
Part 8 of 16
Pause
That's sitting 2 of 4 done
Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.
Learning cycle
Part 9 of 16
Learning cycle 2 of 2
Part 2 · Managing risk
A short piece of teaching, then a check to make sure it has landed.
Explore the idea
Part 10 of 16
Learn
Managing risk
Financial risk includes unexpected costs, income loss, or being pressured into scams and unwise spending. Reducing risk means comparing prices, reading terms before signing up to anything, saving an emergency fund, and being sceptical of offers that sound too good to be true.
Quick check
Part 11 of 16
Reset break
Part 12 of 16
Pause
That's sitting 3 of 4 done
Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.
Challenge round
Part 13 of 16
Game · Sort it
Which of these are true?
Drag each card into the right column. Tap a card first if dragging is fiddly.
True
Not true
Challenge round
Part 14 of 16
Game · Recall cards
Increase 240 by 15%.
Card 1 of 4
Mastery quiz
Part 15 of 16
Marked quiz
End of lesson quiz: Budgeting and managing money
4 questions, marked with the reasoning shown. No timer.
1. Increase 240 by 15%.
2. A count drops from 200 to 150. The percentage decrease is…
3. Which multiplier applies a 7% decrease?
4. Which of these is NOT one of money's main functions?
Lesson round-up
Part 16 of 16
Lesson round-up
Ready when you are
Quiz score
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Ask LunaPart 1 of 16 · Watch & discover
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Understand the functions and uses of money, the importance and practice of budgeting, and managing risk