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 Arizona

2.15.1.G1

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

2.15.1.G1

Spending plan- What is it? A tool used to assist in money

management Also 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 Arizona

2.15.1.G1

Spending plan- Why do 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

2.15.1.G1

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

2.15.1.G1

Income Income is money earned from:

Wages or salaries Tips Withdrawal of money from savings Interest from savings accounts, or investments Monetary gifts Scholarships

© 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

2.15.1.G1

Expense Money Spent Fixed Expenses

Same amount paid each time, usually has a specific due date

Rent/Mortgage Difficult to change in short amount of time

Flexible Expenses Different amount paid each time, usually no specific due date

Clothing Easier 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 Arizona

2.15.1.G1

Spending 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 Arizona

2.15.1.G1

Spending 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 Arizona

2.15.1.G1

Spending 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 Arizona

2.15.1.G1

Spending 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 Arizona

2.15.1.G1

Spending 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 Arizona

2.15.1.G1

Spending 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 Arizona

2.15.1.G1

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

=

© 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

2.15.1.G1

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?

How 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 Arizona

2.15.1.G1

Katie Cole’s Monthly spending plan Using the spending plan and the calendar,

track Katie’s income and expenses for the month of April.

Katie Cole’s 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 Arizona

2.15.1.G1

Homework assignment Your spending plan

Hand out- my spending plan Fill in categories you use Create your budget 10 pts

4 week log of every penny you Earn / given

If your parents give you money to fill the gas tank, you write it down.

Spend Turn in spending plan and 4 week log

Write down actual amounts spent and difference 50 points possible