Lesson Plan: The Millionaire Next Door — The Real Principles of Building Wealth

Objective

Students will understand the core habits and principles that differentiate “everyday millionaires” from high-spending, high-debt consumers, and apply these principles to personal financial goals.

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1. Hook (5 minutes)

Prompt/Discussion Question:

“If you saw a millionaire walking down the hall, what do you think they’d look like?”

Then show two images:

• A flashy celebrity or influencer with luxury items.
• A modest middle-aged person in work clothes.
  Ask: “Who’s more likely to be a millionaire—and why?”

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2. Mini Lesson / Key Takeaways (10 minutes)

Introduce The Millionaire Next Door’s main principles:

Principle	Description	Classroom Example
1. Live Below Your Means	Millionaires tend to spend less than they earn; they avoid lifestyle inflation.	A teacher who drives a paid-off Toyota saves more long term than someone leasing a new BMW.
2. Budget and Save Consistently	They plan their spending and invest automatically.	“Pay yourself first” — set aside 10–20% before spending on anything else.
3. Avoid Status Spending	They don’t buy things to impress others.	Choosing generic brands and simple housing instead of luxury items.
4. Invest Wisely Over Time	Focus on long-term investing (index funds, retirement accounts, real estate).	Slow, steady growth beats “get rich quick.”
5. Choose the Right Career & Partner	Stable, modest-income professions and supportive relationships are key.	Teachers, engineers, and small-business owners often outperform high earners who overspend.
6. Teach Financial Discipline to Children	Don’t subsidize adult children’s lifestyle; teach independence.	Parents help with education, not endless money gifts.

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3. Video Segment (optional, 5–7 minutes)

Show a short YouTube clip like:

“The Millionaire Next Door Explained in 7 Minutes”
(You can preview and pick a clean summary — e.g., Alux or Practical Wisdom channels.)

Ask students to note:

• What habits surprised you most?
• Which could you adopt right now?

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4. Guided Practice (10 minutes)

Activity: “Millionaire or Not?”
Show mini-scenarios (either slides or printed cards):

Example:

1. Drives a new Tesla, rents an apartment, no savings.
2. Drives a 10-year-old Honda, owns rental property, tracks expenses monthly.
3. Wears designer clothes but carries credit card debt.
4. Owns a small lawn care business, invests in 401(k).

→ Students mark Millionaire Mindset or Not Yet and explain why.

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5. Reflection / Application (10 minutes)

Writing prompt:

“Which principle of The Millionaire Next Door do you think would be hardest for you to follow? Which would be easiest?”

OR

Budget challenge:
Students outline one goal (car, college, trip) and describe how living below their means could help them save for it.

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6. Extension Ideas

• Math connection: Calculate how $200 invested monthly grows to $1 million by retirement (compound interest).
• Research project: Interview a local small-business owner or teacher about their saving habits.
• Media literacy link: Analyze how advertising promotes the opposite of these millionaire behaviors.

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7. Assessment

• Short quiz or exit ticket:
  1. What does “live below your means” mean?
  2. What’s more important to millionaires: income or spending habits?
  3. Give one example of a “status symbol” purchase.
  4. What is the difference between PAW (Prodigious Accumulator of Wealth) and UAW (Under Accumulator of Wealth)?