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Standards-Aligned Financial Literacy Lesson Plans (Grades K–8): Money Word — Money
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Standards-Aligned Financial Literacy Lesson Plan (Grades K–8): Money Word — MoneyLesson Plans

Dictionary Term Focus: Money

Core Concept Across All Grades

Money is a tool people use to earn, save, spend, and plan. When children understand what money is and how it works, they can make better choices and build strong financial habits.

K–2 Lesson Plan

Grade Band: K–2 (Ages 5–7)

Big Idea

Money is a tool people use to get things they need and want now and in the future.

Learning Objective

Students can explain what money is and what it is used for.

Standards Alignment

Council for Economic Education (CEE): Money Management, Decision Making

Jump$tart Coalition: Financial Decision Making

National Financial Educators Council (NFEC): Money awareness and responsibility

CASEL: Self-Management, Responsible Decision-Making

Materials

Dictionary definition of Money (kid-friendly version)

Play money or coins

Picture cards showing items people buy (food, toys, clothes, books)

Lesson Flow (15–20 minutes)

1. Warm-Up Conversation (3 minutes)
Ask:

“What do people use money for?”

“Where have you seen money being used?”

Explain:
"How does money help people get things they need and want today?" "How does money help people get things they need and want in the future?"

2. Read & Discuss the Definition (5 minutes)
Read the kid-friendly dictionary definition of Money.
Ask:

“Can money help us do things?”

“Can we use money in different ways?”

Key idea:
“Money is a tool, not a toy.”

3. Guided Practice (5 minutes)
Show picture cards and ask:

“Would someone use money for this?”

“Is this a need or a want?”

Students respond by saying:
“Money is a tool that gives us choices.”

4. Practice Activity (5 minutes)
Give students play money and ask them to:

Pretend to earn money

Pretend to save money

Pretend to spend money

Teacher reinforces:
“Money is a tool we use wisely and thoughtfully.”

Assessment (Informal)

Students can:

Explain what money is

Give one example of how money is used

Take-Home Connection

“Talk with someone at home about one way your family uses money.”

Grades 3–5 Lesson Plan

Grade Band: 3–5 (Ages 8–10)

Big Idea

Money is a tool that gives people more choices.

Previous Grade Band K-2: Money is a tool people use to get things they need and want noriw and in the future.

Learning Objective

Students will explain how money is used to earn, save, spend, and plan.

Standards Alignment

CEE: Money Management, Decision Making

Jump$tart: Financial Decision Making

NFEC: Financial responsibility and awareness

CASEL: Self-Control, Reflection

Materials

Dictionary definition of Money (kid + grown-up versions)

Scenario cards (earning, saving, spending situations)

Chart paper or board

Lesson Flow (20–25 minutes)

1. Warm-Up Question (5 minutes)
Ask:

“If money disappeared tomorrow, what would be harder?”

Explain:
“Money makes it easier for people to trade - to get things they want and need.”

2. Read & Analyze the Definition (5 minutes)
Read both versions of the dictionary definition.
Ask:

“Is money good or bad by itself?”

“What matters more—money or how we use it?”

Write on the board:
Money → Choices → Results

3. Scenario Activity (10 minutes)
Present scenarios and ask:

“How is money being used here?”

“What choice is being made?”

Discuss:
“Money is a tool, and tools can be used wisely or unwisely.”

4. Reflection (5 minutes)
Students complete:
“One smart way to use money is…”
“Money helps me because…”

Assessment

Students can:

Explain money as a tool

Identify different ways money is used

Take-Home Extension

“Notice one way money is used at home and talk about the choice behind it.”

Grades 6–8 Lesson Plan

Grade Band: 6–8 (Ages 11–13)

Big Idea

How I use money affects my future.

Previous Grade Band 3-5: Money is a tool that gives people more choices.

Previous Grade Band K-2: Money is a tool people use to get things they need and want noriw and in the future.

Learning Objective

Students will analyze how money functions as a tool for earning, saving, spending, and planning toward dreams and goals - things they may want or need in the future.

Standards Alignment

CEE: Money Management, Decision Making

Jump$tart: Financial Decision Making

NFEC: Informed money behavior

CASEL: Self-Management, Social Awareness

Materials

Dictionary definition of Money

Scenario comparison worksheet

Optional goal-planning worksheet

Lesson Flow (30 minutes)

1. Opening Question (5 minutes)
Ask:

“Why do people say money is a tool?”

Discuss how tools can help or hurt depending on use.

2. Definition Discussion (5 minutes)
Review the dictionary definition.
Introduce student-friendly explanation:
“Money doesn’t decide—people do.”

3. Scenario Comparison (10 minutes)
Compare:

Student A uses money without a plan

Student B uses money with goals in mind

Ask:

“Who has more options later?”

“Who feels more in control?”

Connect to:

Saving

Spending

Planning for goals

4. Personal Application (10 minutes)
Students write:

One way they use money now

One way they want to improve how they use money

One future goal money could help support

Assessment

Students can:

Explain money as a tool

Connect money use to future outcomes

Real-World Extension

Connect to:

Allowance or earnings

Saving and budgeting

Goal-setting and planning

Teacher Notes

Emphasize that money itself is neutral

Focus on behavior, not amounts

Reinforce that choices determine outcomes

Pair with dictionary lessons for Choice, Save, Earn, and Budget

Bottom Line

The word Money helps children understand that money is a tool they can learn to use wisely. When kids understand what money is and how it works, they are better prepared to make smart choices, build healthy habits, and plan for their future.

Download the Standards Alignment PDF

If you’d like a downloadable PDF version of this and all of Sammy Rabbit's financial literacy standards aligned lesson plans for classroom use, curriculum review, or district adoption, please contact us. We’re happy to provide a printable version aligned with national and state standards.

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