Diving Into Spending Plans Grab a marker 2

Diving Into Spending Plans! Grab a marker!

2. 15. 1. G 1 Today We’ll Talk About Spending Plan - What is it? Why use it? p Income and Expense p Bean Game p © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 2 Funded 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. G 1 Almost half of all American families spend more money than they make. p Why do you think this happens? n n People do not make enough money People spend too much money © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 3 Funded 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. G 1 Values, Needs, & Wants p What is a value? Give an example. n p What is a need? Give an example. n p A belief about what is important to a person Something that is a necessity What is a want? Give an example. n 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 Plans – Slide 4 Funded 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. G 1 Spending Plan - What is it? p A spending plan is n 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 Plans – Slide 5 Funded 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. G 1 Spending Plan - Why use it? Why would you want to know where your money is going? p Spending plans are used to help people n n n 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 Plans – Slide 6 Funded 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. G 1 A Spending Plan Tracks…. . p Income n p Money Earned Expense n Money Spent © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 7 Funded 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. G 1 Game Time! p Income p Expense On your paper draw a big E on one side I and a big on the other. As each item is read, hold up the appropriate sign. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 8 Funded 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. G 1 Income or Expense? Rent/House payment Paycheck Groceries Internet bill Winning the lottery Utilities Putting money into a piggy bank Hobbies Car repairs Clothes Birthday money MP 3 player Using savings to buy a skateboard © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 9 Funded 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. G 1 Spending Plan Contents p Income p Expenses Housing n Utilities n Transportation n Savings n p Expenses Food n Insurance n Clothing n Other n © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 10 Funded 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. G 1 Lee’s Spending Plan Example Income Expenses Item Amount Mowing a lawn $10. 00 Movie ticket and popcorn $15. 00 Birthday gift $15. 00 Snack and drink $5. 00 Total $20. 00 q. Does q. If Lee have enough income to pay his expenses? 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 Plans – Slide 11 Funded 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. G 1 In Conclusion p A spending plan is based on n p A tool to help people track their money Values, wants, and needs A spending plan tracks n Income and expenses © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

The End!

2. 15. 1. G 1 Your Turn! p Spending Plan Shake-Up… p 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 p Budget as if you are a senior in high school p © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans – Slide 14 Funded 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. G 1 Spending Plan Shake-Up! Could you afford everything that you needed? p Could you afford everything that you wanted? p p 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 Plans – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona