Finance

Where does your money go each month, and how would you know if someone else was spending it?

A budget is a plan you make for your money before the month starts. It has three parts: money in, money out and money left. The day you set up your budget is also a good day to turn on your bank's account alerts, so the same app that helps you stick to your plan tells you quickly if something looks wrong.

Talk about it at home: jump to the Kitchen Table Talk

This lesson goes with our article A budget is a plan you make before the month starts.

Background for the teacher or parent

• The CFPB, the federal agency that enforces consumer financial laws, suggests tracking what you earn and spend for a whole month, not just a week or two, so you can see all your income and expenses in one place. Its free tracker sorts spending into everyday categories like housing and utilities, groceries, transportation, eating out and cell phone: CFPB: spending tracker worksheet (PDF). More free worksheets are in the CFPB: Your Money, Your Goals toolkit.
• The FDIC, the agency that insures bank deposits, notes that many banks and credit unions can send you an email or text when your balance falls below a level you choose, when a transaction is over a set amount, or when a transaction is made outside the United States: FDIC: managing your checking account (PDF).
• The FTC, the federal agency that tracks fraud reports, says imposter scams (where someone pretends to be a business or agency you trust) were the most reported type of fraud in 2025, with people reporting $3.5 billion in losses. Among business impersonators, people reported the highest losses to fake bank callers, and some of the costliest scams start with a fake security alert that seems to come from a bank: FTC: imposter scam losses in 2025.
• A verification code is the short one-time number your bank texts or emails you when you sign in, to prove it's really you. The FTC says anyone who asks you for that code is a scammer, and that you should contact your bank yourself using a number you trust, like the one on your statement or in your app: FTC: why someone would ask for your verification code. The CFPB adds that banks and credit unions never ask for account information by email or text: CFPB: messages asking you to "verify" your account.

Classroom version (10 minutes)

For: high school, teacher-led.

Objective: You can build a simple one-month plan with three parts (money in, money out, money left), and you can name two bank alerts that help you stay on plan and spot fraud.

Materials: Board or projector. One copy per pair of the "Jordan's month" card below, or write it on the board. Optional: printed copies of the CFPB spending tracker linked above.

Hook (2 min)

Ask: "Have you ever reached the end of a month, or a weekend, and wondered where your money went?" Take two or three answers. Then say: "A budget just means deciding where your money goes before it goes."

Explain (3 min)

Draw three columns on the board: Money in, Money out and Money left.

• Money in is everything you expect to get this month, like a paycheck, an allowance or gift money you can count on.
• Money out comes in two kinds. Fixed costs are the same every month, like a phone bill, a subscription or a bus pass. Flexible costs change from month to month, like food out, fun and gas.
• Money left is what remains after you subtract. Decide what it's for, like saving for a goal or keeping a cushion for surprises, so it doesn't quietly disappear.

Then explain that a plan only works if you check it during the month, and your bank app can help. An account alert is a message your bank sends you when something happens on your account. A low-balance alert tells you before you run short. A large-transaction alert tells you right away about a big charge, including one you didn't make. Finish with the safety rule: your real bank will not call or text asking for your password or the verification code it just sent you.

Activity (4 min)

In pairs, build a plan for this made-up example.

Decide how much goes to each flexible cost and how much goes to the laptop. Check that money in minus money out is not below zero. Then pick two bank alerts Jordan should turn on while setting up the plan, and say why.

Discussion questions, if time allows:

1. Which of Jordan's costs was hardest to put a number on, and why?
2. If Jordan spends more on food out than planned in week two, what could Jordan change for the rest of the month?
3. Jordan gets a text: "Your bank: unusual charge detected. Reply with the code we just sent to stop it." What should Jordan do? (Answer: don't reply and don't share the code. Open the bank's official app, or call the number on the back of the card.)

Exit ticket (1 min)

On a slip of paper, answer:

1. Name the three parts of a monthly budget.
2. Name one bank alert you'd turn on, and what it would warn you about.
3. True or false: "If someone says they're from my bank and asks for the code just texted to me, it's fine to read it to them." (False.)

Want more? The CFPB: Money as You Grow page has free activities and conversation starters for parents and caregivers, sorted by age.

Lessons are free to use in classrooms and at home. Please keep the source credit when you share.

Education only, not financial, legal or tax advice. Not a registered investment adviser.

Sources (all checked October 22, 2026)

1. CFPB: spending tracker worksheet (PDF)
2. CFPB: Your Money, Your Goals toolkit
3. FDIC: managing your checking account (PDF), section "Set up email or text alerts"
4. FTC: imposter scam losses in 2025, press release, June 15, 2026
5. FTC: why someone would ask for your verification code, consumer alert, March 7, 2024
6. CFPB: messages asking you to "verify" your account
7. CFPB: Money as You Grow