Financial Wellbeing — Year 6 Lesson Plan
National Curriculum: PSHE/RSE — Economic wellbeing: about the different ways people earn and obtain money, and what it means to be in debt; how to manage money, including the importance of budgeting and different ways to save (KS2 statutory guidance).
Overview
Pupils develop a serious and practical understanding of personal finance appropriate for upper primary. They manage a realistic monthly budget scenario, examine what a payslip shows, investigate employment pathways for different careers, and understand the concept of financial resilience. The lesson prepares pupils for the greater financial independence and decision-making they will encounter at secondary school and beyond.
Learning Objectives
- Manage a simple monthly budget, making spending decisions and understanding trade-offs.
- Understand what a payslip shows including gross pay, tax and National Insurance.
- Know the difference between saving, borrowing and debt and why financial planning matters.
- Explore the relationship between education, skills and earning potential.
Key Vocabulary
Suggested Lesson Structure
Introduce a scenario: a fictional character called Sam earns 1,800 pounds per month after tax and needs to pay rent, buy food, pay for travel and have some money left for enjoyment. Ask pupils to estimate how much each category might cost in their local area. Reveal realistic figures and discuss: is 1,800 pounds per month a lot or a little? It depends entirely on circumstances.
Explain key financial concepts in accessible terms. Gross versus net pay: gross is what you earn before deductions; net (take-home pay) is what arrives in your bank after tax and National Insurance are removed. Explain why we pay tax and National Insurance using child-friendly examples of services they fund. Introduce the concept of a budget as a plan, and savings as a financial safety net. Briefly explain debt: money borrowed that must be paid back, often with added interest.
Pupils are given a budget of 1,200 pounds per month to manage (take-home pay for a starting job) and a list of monthly expenses: rent 600 pounds, food 150 pounds, transport 80 pounds, phone 30 pounds, household bills 100 pounds, clothing 50 pounds. They must allocate the remaining budget and make decisions about what to prioritise. Discuss: what happens if an unexpected expense arises (e.g. a broken phone)? How important is a savings cushion?
Pupils choose two careers from a diverse list (nurse, electrician, teacher, software developer, chef, journalist, social worker) and research or use provided fact cards to complete a career profile: the work involved, the qualifications needed, the typical starting salary and how they might progress. They compare the two pathways and reflect on what matters most to them in future work.
Discuss: what is financial resilience and why does it matter? Establish that it means being able to cope with unexpected costs, avoid harmful debt and plan for the future. Close with the message: understanding money now — even in a simple way — puts them ahead. The best financial habit to start is simple: spend less than you earn and save a little each month. Encourage them to discuss what they have learned with a family member.
Common Misconceptions
- Pupils often think that earning a high salary automatically means being financially comfortable. Help them understand that expenditure, debt and financial decisions matter as much as income — many high earners experience financial difficulty through poor planning.
- Some pupils believe that tax is money the government takes unfairly. Explore concretely how tax funds services they use every day — schools, hospitals, roads, libraries — to build an understanding of tax as a collective contribution.
Prior Knowledge
Pupils should already be able to:
- Understanding from KS1 and Year 4 of money, earning, saving and budgeting at a basic level.
- Awareness of different careers and the skills needed for them.
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