1. Creating a Spending Plan
Law in American Society

2. What do you spend your money on?
Think of how you spend your money...
What do you spend most of it on?
What are things you spend your money on that you can’t live without?
What, if money was tight, would you avoid buying?

3. Values, Needs & Wants
How does what you value, need, and want affect your spending?

4. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide
What is a Spending Plan?
1.6.3.G1
Income – money
earned
Expense – money spent
Everyone has an individualized spending plan
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5. Why is it important to create a spending plan?
Helps to determine needs versus wants
Prevents overspending
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

6. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Calculating Income
1.6.3.G1
How do I calculate my net income?
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

7. Calculating Income Spending plan expenses paid from net income
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

8. What are Major Expenditures?
1.6.3.G1
Savings
Major Expenditures-
largest expenses in most spending plans
Insurance
Food
Major Expenditures
Housing
Transportation
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

9. Typical Major Expenditure Amounts
1.6.3.G1
Typical Major Expenditure Amounts
A reference when creating a spending plan
Provides guidance
Can adjust percentages to meet individual values, needs, wants
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

10. What expenses are not included in the major expenditure categories?
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

11. Major Expenditure Doing the Math
Let’s calculate what Anita would typically spend in each major expenditure category.
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

12. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Doing the Math
1.6.3.G1
On your own, calculate how the Kim family would spend their money in each major expenditure category.
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

13. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Doing the Math
1.6.3.G1
Now let’s calculate what percentage of his total net income Dominick spends in each of the expenditure categories.
© Take Charge Today – December 2010 –Major Expenditure Mania – Slide
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona