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2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and.

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Presentation on theme: "2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and."— Presentation transcript:

1 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Daily Information 4/9 Objectives: 1.Prepare a meal plan and determine if you were able to stay within budget. 2.Explain the importance of budgeting. Warm Up: 1)Make sure work turned in last class has been updated in infinite campus! 2)Record all expenditures in the month of April on the “New” student budget. Agenda: 1.Warm Up 2.Grocery budget 3.Ch4 Study Guide 4.Bottom Line

2 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Daily Information 4/8 Objectives: Prepare a meal plan and determine if you were able to stay within budget. Warm Up: 1)Check your grade in infinite campus to make sure work submitted yesterday has been updated. Agenda: 1.Warm Up 2.Grocery budget 3.Resume 4.Bottom Line

3 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Daily Information 4/1 Objectives: Implement the process of creating a spending plan. Discover ways to save money when purchasing groceries. Warm Up: How much money do you want to have by the time you are 30? What will you use it for? Agenda: 1.Warm Up 2.Scenario P.P. 3.Scenario activities 4.Grocery budget activity 5.Paycheck project 6.Bottom Line

4 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Daily Information 4/4 Objectives: Discover ways to save money when purchasing groceries. Warm Up: Who is one of your “money role models” and why? Agenda: 1.Warm Up 2.Financial Literacy Fact Friday!! 3.Grocery budget activity

5 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Daily Information 4/7 Objectives: Discover ways to save money when purchasing groceries. Warm Up: Check your grade in infinite campus. If you have concerns regarding your grade, please write them down in your warm-up book. Agenda: 1.Warm Up 2.Grocery budget activity 3.BottomLine

6 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Daily Information 4/7 Objectives: Discover ways to save money when purchasing groceries. Warm Up: Check your grade in infinite campus. If you have concerns regarding your grade, please write them down in your warm-up book. Agenda: 1.Warm Up 2.The Carson Family 3.Grocery budget activity 4.Bottom Line

7 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Carson Family Goals ▫ Pay the rest of tuition, no more student loan ($200) ▫ Enroll in life insurance ($75) ▫ Pay off credit card ($___) Changes ▫ Dining out: $40 ▫ Cell Phone: $50 ▫ Cigarettes: $0 ▫ Credit Card: (More than $30)

8 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Carson Family Calculate your total Income = expenses What you will do with the remaining balance? ▫ How much towards the credit card ▫ How much towards their savings

9 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Congratulations! You have been hired as a financial advisor for John and Tia Brown Financial Advisor InformationYour Job Developed a Statement of Financial Position and Income and Expense Statement Identified the following goals: Develop a spending plan for the Brown family Increase the amount of their emergency savings fund Spend less money on clothing every month Pay more on their monthly car loan payment to pay the loan off faster Spend less money dining out at restaurants

10 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Brown Family Tracked Income and Expenses for January Financial Advisor Information Your Job Kept all receipts for the month of January to create an Income and Expense Statement Review John and Tia’s January Income and Expense Statement for a realistic view of their income and expenses

11 2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Personalize Your Spending Plan Step 1 - Track Current Income and Expense Step 2 - Personalize Your Spending Plan Step 3 - Allocate Money to Each Category Step 4 - Implement and Control Step 5 - Evaluate and Make Adjustments How will you develop a spending plan?

12 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Income and Expense Statement for: John and Tia Brown Time Period:January Amount Planned Amount for February Income Earned Income Wages or salary before deductions Total Income $5, $ Expenses Deductions Often Taken from Paychecks *Contribution to a retirement program (401k, 403b) *Federal income tax1, *Social Security *Medicare74.17 Saving and Investing (Pay Yourself First) Contribution to savings and investments Insurance Premiums *Health insurance, Medicaid and Medicare *Renters or homeowners insurance15.00 *Automobile insurance70.00 Housing Costs *Housing payment (rent or mortgage) *Utilities (gas, electricity, water, garbage) Transportation Costs *Automobile payment *Fuel (gasoline/diesel) *Automobile repairs and maintenance50.00 *Public transportation fees50.00 *Automobile license and registration (yearly fee)20.00 Food Costs Food at the grocery store Meals at restaurants Snacks away from home (coffees, treats)30.00 Non-food kitchen supplies (plastic wrap, dish soap)30.00 Communication and Computers *Cell phone *Internet60.00 *Cable/satellite television40.00 Medical Costs Not Covered by Insurance *Medical care Clothing and Personal Care Clothing Personal care (shampoo, haircuts, cosmetics, laundry, etc.) Entertainment Movies, books, and other entertainment Total Expenses$5,401.30$ Net Gain or Net Loss (Income less Expenses)$98.70$ The Brown Family Personalize The Spending Plan Financial Advisor Information Your Job Requested a spending plan for the month of February Requested the same document and categories as the Income and Expense Statement Find the column on the Income and Expense Statement where the Spending plan will be created

13 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Brown Family Allocate Money to Each Category Financial Advisor Information Indicated a * next to expenses that are either contractual or they are unwilling to decrease Remember goals Consider trade-offs Must have a net gain or a zero balance

14 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Brown Family Allocate Money to Each Category Your Job Develop a spending plan for the family Explain each change made

15 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Net Gain or Net Loss? IncomeExpenses Net Gain or Net Loss Net Gain?Net Loss? Add more money to savings or another expense Increase income Decrease expenses Both

16 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Brown Family Evaluate and Make Adjustments How could creating a spending plan help you now and in the future? Financial Advisor Information Your Job John and Tia realized that if they dine out at restaurants less often they will need to increase their monthly grocery expense Increase their grocery budget by $20.00 How has developing a spending plan helped the Brown family?

17 2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The Brown Family You may begin the scenario within your group When you are finished, start working on the second scenario for the Carson family.


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