Diving Into Spending Plans!

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Today We’ll Talk About

Spending Plan - What is it? Why use it? Income and Expense Bean Game

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Why do you think this happens? People do not make enough money People spend too much money

Almost half of all American families spend more money than

they make.

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Values, Needs, & Wants What is a value? Give an example.

A belief about what is important to a person What is a need? Give an example.

Something that is a necessity What is a want? Give an example.

Something that is not a necessity but is desired

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Spending Plan - What is it?

A spending plan is A tool to help people manage their money

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Spending Plan - Why use it?Why would you want to know where your

money is going?

Spending plans are used to help people Track where their money is going Identify income and expenses Meet financial goals

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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A Spending Plan Tracks…..

Income Money Earned

Expense Money Spent

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Game Time!

Income Expense

As each item is read, stand up and move to the appropriate

game card.

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Income or Expense?

Rent/House paymentPaycheckGroceriesInternet billWinning the lotteryUtilitiesPutting money into a

piggy bank

HobbiesCar repairsClothesBirthday moneyMP3 playerUsing savings to

buy a skateboard

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Spending Plan Contents Income

Expenses Housing Utilities Transportatio

n Savings

Expenses Food Insurance Clothing Other

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Lee’s Spending Plan Example

Income ExpensesItem Amount Item Amount

Mowing a lawn

$10.00 Movie ticket and popcorn

$15.00

Birthday gift

$15.00 Snack and drink

$5.00

Total $25.00 Total $20.00

Does Lee have enough income to pay his expenses?

If he would like to buy a new shirt for $15, does he have enough money?

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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In Conclusion A spending plan is

A tool to help people track their money A spending plan is based on

Values, wants, and needs A spending plan tracks

Income and expenses

The End!

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Your Turn! Spending Plan Shake-Up…

Budget your beans to pay for the things you need and want

Each square is worth one bean and all the squares must be filled to have that item

Budget as if you are a senior in high school

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© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending PlansFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Spending Plan Shake-Up! Could you afford everything that you needed?

Could you afford everything that you wanted?

How does Spending Plan Shake-Up relate to real life?