Diving Into Spending plans! Click on beach ball for video
Dec 18, 2015
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