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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Plan Activity Rent Fixed Expense Wages Income

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Plan Activity Groceries Flexible Expense Internet Bill Fixed Expense

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Plan Activity Tips Income Utilities Fixed Expense

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Plan Activity Gift from Family Income Savings Fixed Expense

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Plan Activity Automobile 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Plan Activity Scholarships Income Hobbies Flexible expense

© Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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 Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 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