Diving Into Spending plans!

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Diving Into Spending plans!. Click on beach ball for video. Almost half of all American families spend more money than they make. Why do you think this happens? People do not make enough money People spend too much money. Spending plan- What is it? . - PowerPoint PPT Presentation

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Developing a Spending Plan

Diving Into Spending plans!

Click on beach ball for video 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 Arizona2.15.1.G1Why do you think this happens? People do not make enough moneyPeople 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 Arizona2.15.1.G12One point to each group that answers, each group gets a chance Write on paperSpending plan- What is it? A tool used to assist in money managementAlso called a budget

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 Arizona2.15.1.G1Spending plan- Why do it?Why would you want to know where your money is going?

Spending plans are used to help peopleTrack where their money is goingIdentify income and expensesMeet 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 Arizona2.15.1.G1A Spending plan Tracks..IncomeMoney EarnedExpenseMoney 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 Arizona2.15.1.G1IncomeIncome is money earned from:Wages or salariesTipsWithdrawal of money from savingsInterest from savings accounts, or investmentsMonetary giftsScholarships

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 Arizona2.15.1.G1ExpenseMoney SpentFixed ExpensesSame amount paid each time, usually has a specific due dateRent/MortgageDifficult to change in short amount of timeFlexible ExpensesDifferent amount paid each time, usually no specific due dateClothingEasier to change in short amount of time

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 Arizona2.15.1.G1Spending Plan ActivityRent

Fixed Expense

Wages

Income

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 Arizona2.15.1.G1Spending Plan ActivityGroceries

Flexible Expense

Internet Bill

Fixed Expense

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 Arizona2.15.1.G1Spending Plan ActivityTips

Income

Utilities

Fixed Expense

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 Arizona2.15.1.G1Spending Plan ActivityGift from Family

Income

Savings

Fixed Expense

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 Arizona2.15.1.G1Spending Plan ActivityAutomobile Registration

Fixed Expense

Eating Out/Snacks

Flexible Expense

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 Arizona2.15.1.G1Spending Plan ActivityScholarships

Income

Hobbies

Flexible expense

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 Arizona2.15.1.G1Your 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

=

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 Arizona2.15.1.G1Spending 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?

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 Arizona2.15.1.G1How do you Create a spending plan? 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 Arizona2.15.1.G1Katie Coles Monthly spending planUsing the spending plan and the calendar, track Katies income and expenses for the month of April.Katie Coles Evaluation 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 Arizona2.15.1.G1Homework assignmentYour spending planHand out- my spending planFill in categories you useCreate your budget10 pts 4 week log of every penny you Earn / givenIf your parents give you money to fill the gas tank, you write it down. SpendTurn in spending plan and 4 week logWrite down actual amounts spent and difference50 points possible

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 Arizona2.15.1.G1