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
2.15.1.G1
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
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
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
2.15.1.G1
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
2.15.1.G1
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
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
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
2.15.1.G1
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
2.15.1.G1
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
2.15.1.G1
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
2.15.1.G1
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
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
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
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?