Get a clear picture of how money works in your life, build a confident mindset, and see why mastering this stuff is worth it.
Let's Get Started!Hey, you! Welcome to the start of something big—your journey to financial smarts! This lesson is your launchpad. We’re diving into the nuts and bolts of money: where it comes from, where it goes, and why understanding it can flip your world for the better. Whether you’re juggling bills, dreaming of a big purchase, or just curious, this is for you. By the end, you’ll feel pumped to take control of your cash—and your future.
When you hear “money,” what pops into your head? Write your first thoughts below—no judgment, just honesty!
Why we’re here: Money touches everything—your home, your food, your fun. But most people stumble through it blind. Not you—not after this. Let’s unpack the basics and set you up to win.
Money’s not magic; it’s a tool. You earn it, spend it, save it, or share it. To use it like a pro, you need to know its two main players: income and expenses. Let’s break them down big-time.
This is the cash flowing into your hands. It’s your paycheck from a 9-to-5, cash from babysitting, tips from waiting tables, or even $20 Grandma slipped you at Thanksgiving. It’s anything that adds to your pile.
This is the cash flowing out. It’s what you pay for to live, enjoy, or survive—rent, gas, that new hoodie, Netflix, you name it. Expenses come in two flavors:
Picture Jamie, a college student. Jamie’s income is $300/month from a campus job and $50 from tutoring. Total: $350. Expenses? $150 for dorm fees (fixed), $100 for food (variable), $30 for fun (variable). That’s $280 spent, leaving $70. What Jamie does with that $70 is where the magic happens—spend it, save it, or something else?
Activity: List your own! Write down three income sources you’ve had (or could have) and three expenses you’ve faced lately. Be specific!
Extra Step: Circle one expense you could cut back on—why that one?
Financial literacy is knowing how to make money work for you, not against you. It’s not about having tons of cash—it’s about using what you’ve got wisely. Here’s the full scoop:
Take Leo, a 25-year-old barista. Leo blew $600 paychecks on eating out and gadgets—no plan. A $400 car repair wiped him out. After learning the basics, Leo saved $100/month. Six months later, a tire blew—no panic, just paid it. Now Leo’s eyeing a vacation.
Or Mia, a high schooler. Mia’s $30/week allowance went to apps and candy. Her fave band’s $50 concert tickets? Too late, cash gone. With literacy, Mia could’ve saved $10/week and rocked that show.
Your Turn: What’s your money dream? Write one thing you’d love if money wasn’t a worry.
Bonus Question: How could financial literacy help you get there? Add a quick thought!
Let’s zoom in on how money moves—it’s like a dance between what you earn and spend. Get this down, and you’re halfway to bossing your finances.
You earn $1,200/month (job + side hustle). Expenses: Fixed—$600 rent, $50 phone, $30 internet = $680. Variable—$200 food, $70 fun, $50 gas = $320. Total: $1,000. Flow: $1,200 - $1,000 = $200 surplus. Sweet!
What’s a Surplus Good For? That $200 could hit savings, buy new shoes, or start investing (more later). Deficit? Cut back or earn more—tough but fixable.
Use these numbers or your own:
Subtract expenses from income. What’s your result?
Next Level: Surplus? What’s one thing you’d do with it? Deficit? What’s one expense to trim?
Kai earns $15/hour, about $600/month. Expenses were $650—deficit city. Kai ditched $30 takeout, swapped to cooking. Boom, $20 surplus. What’s your small change?
Here’s where it gets personal: your mindset drives what you do with money. A good mindset isn’t “I’m rich!”—it’s “I can learn this, and it’ll grow with me.”
Priya, a 30-year-old teacher, thought saving was for “boring” people—$200/month on clothes. Laptop died, $500 gone, scrambling. Mindset switch: saved $50/month, still grabbed a $20 shirt sometimes. Now $300 tucked away and in control.
Mindset Shift Activity: Pick one old money thought you’ve had. Flip it to a new one.
Extra Push: One tiny habit to start this week—like skipping a $3 coffee?
Why could financial literacy rock your world? Write one reason and one way you’ll use today’s lesson.
Question 1: What’s income?
A) Cash you spend on rentQuestion 2: If expenses beat income, you’ve got:
A) A surplus—extra moneyQuestion 3: Financial literacy helps you:
A) Control money and hit goalsQuestion 4: What’s a good money mindset?
A) “Money’s only for fun.”Wow, you’ve nailed the foundation of financial literacy! You’ve got the lowdown on income, expenses, money flow, and a killer mindset to boot. This isn’t just info—it’s power. You’re ready to roll into the next step with confidence.
You’re not just learning about money—you’re learning to own it. The future’s yours, and it’s looking bright. Let’s keep the momentum going!