FEB 1 0 1975dO

DL-1352

YOUR FAMilY SPENDING PLANExtension Specialists in Family Resource Management

The Texas A&M University System

Almost everyone would like to have moremoney. However, more money isn't always pos­sible and doesn't always solve the problem. Mostpeople must get along on what they have.

Whether a family has a lot of money or just alittle, a sound plan for spending and saving is thekey to having dollars buy what is needed andwanted before they disappear in unexpected ways.A spending plan can help a family:

live within available income

plan for today and tomorrow

reach financial goals

spend more effectively

develop confidence, independ­ence and resourcefulness inhandling financial problems

A plan for spending and saving possesses nomagic. It cannot change the amount of money youhave to spend. It cannot make you save. Neithercan it eliminate all financial crisis. But a spendingplan can increase the ability to have those thingsthat are important to the family.

Step 1

Add up your total income. If income is fromwages or salary, figure only take-home pay. Addany interest or dividends received piUS moneycontributed by any family members.

Annual wages or income $, _

Step 2

Figure out your total fixed expenses. Usethe worksheet to help you remember all the waysthe family's money is obligated or has to be spent.

Total fixed expenses $, _

Step 3

Estimate how much is needed for flexible ex­penses-those day-to-day or irregular expensesthat can only be estimated. You can estimateusing past bills or checks if you have not keptrecords over a period of time. Use the worksheetfor figuring flexible expenses.

Total flexible expenses $, _

How Do You Begin?

Consider the needs and wants of the entirefamily. Involve everyone in the planning. Essen­tially there are th ree basic elements to considerin setting up a plan:

Total expenses

Step 4

$-------

• your income

• your expenses

• how to adjust spending tomoney available

Does the "outgo" equal your income? If ex­penses are greater than the income, the familywill need to make some decisions about what todo. Your family may decide to revise its bUdget,increase its income or use resources other thanmoney.

Texas Agricultural Extension Service • The Texas A&M University System • John E. Hutchison, Director • College Station, Texas

HousingRentMortgage payments

Utilities and home servicesWaterElectricityGasOther fuelGarbage pick upTelephoneTV cable

Taxes

SPENDING PLAN WORKSHEETFixed Expenses

$-------

Federal income tax*City and county taxesProperty taxes

Installment paymentsCarTVCharge accountsPersonal loansOther

InsuranceLifeAutomobileHealth and accident, hospitalizationPersonal property, fire and theftSocial security* *

TransportationLicense platesVehicle sticker, inspectionCommuting fareParking

EducationTuition or registration feesRoom and boardBooksOther

Personal allowancesHusbandWifeChildren

Personal improvementMusic or dance lessons, etc.Subscriptions (newspapers, magazines)Other

ContributionsReligiousCharityOther

Membership duesUnionProfessionalSocial

Savings and investmentsEmergenciesFutureOther

* Estimate any additional payment beyond amount withheld from regular wages.** If self employed.

TOTAL $ _

FoodMeals at homeMeals eaten outOther

ClothingNew clothes, accessoriesLaundry or drycleaningAlterations, repairs or renovationOther

Home Improvement, suppliesMaintenanceRemodelingFurnishings and equipmentYard care, suppliesCleaning or cleaning aidsOther

GiftsBirthdaysWeddings, anniversariesReligious celebrationsIllnessGraduationOther

TransportationGasolineRepairs, upkeepTaxi, bus or planeOther

RecreationHobbiesVacationsMovies or sportsOther

ContributionsReligiousCharitiesService, professional groupsSchool or collegesOther

Health*MedicalDentalDrugsMedical suppliesOther

Personal CareGrooming aidsBarber shopBeauty parlor

Others

'" Not covered by insurance.

Flexible Expenses

$._------

TOTAL $. _

Once your income and expenses are down onpaper, you can see if spending is distributed theway you want it or if it is "lopsided." Are yousaving enough money, or are you spending toomuch for one item with not enough to cover otheritems? Is it balanced? Does it meet your needs?If not, you may need to evaluate your expensesand see what can be cut down or eliminated.

Nobody can answer these questions for yourfamily. The spending plan is a guide that may beadjusted for changing prices, different family sit­uations or unexpected expenses. Use the work­sheets in this leaflet to help your family make aspending plan.

Use the form, "Family Spending Plan," tocompare what you actually spend with what youplan to spend. This record will help you allocatemoney for all expenses.

After your family has developed a spendingplan, consider future goals and plan for a longertime period. For example, when the car is paid off,will that money be saved, put on another debt orjust spent? A long-range spending plan takes intoaccount the life expectancy of a car or other suchitems. Plan for when their replacement will benecessary.

Don't be discouraged if the plan doesn't workthe first time. It takes time to solve money prob­lems.

FAMILY SPENDING PLAN

Planning Periods(weekly, monthly or yearly

Actual Planned Planned . Actual

INCOME

FIXED EXPENSES

FLEXIBLE EXPENSES

BALANCE

Educational programs conducted by the Texas Agricultural Extension Service serve people of all ages regardless of socio­economic levels, race, color, sex, religion or national origin.

Cooperative Extension Work in Agriculture and Home Economics, The Texas A&M University System and the United States Depart­ment of Agriculture cooperating. Distributed in furtherance of the Acts of Congress of May 8,1914, as amended, and June 30, 1914.20-1-75 HM