1. Spending Plan
February 3, 2011

2. Spending Plan
A spending plan is a financial statement you can use to assist in money management
also known as a budget

3. Set Financial Goals
Set financial goals. A financial goal should include the following elements- SMART
Specific
Measurable
Attainable
Realistic
Time bound

4. Why is a Spending Plan important?
Giving a person an understanding of where their money is going
Tracking income and expenses
Help meet financial goals
Help people live within their income and make ends meet
Reduce the need for using credit

5. Sources of Income Wages or Salaries Tips Withdrawal from savings
Interest earned on savings accounts
Scholarships
Monetary gifts

6. 2 Main Components Income: money earned Expense: money spent
2 types of Expenses
Fixed- have to be paid by specific date
(Food, housing, electricity)
Flexible- have to be paid off but often not by certain date
(Food, goals, etc.)

7. Activity
With your table I will give you a set of Spending Plan Game Cards
You will have 3 cards that say
Income
Flexible Expense
Fixed Expense
I will read a list of things and you have to hold up the card with the right word that matches it

8. Rent

9. Rent
Fixed Expense

10. Wages

11. Wages
Income

12. Groceries

13. Groceries
Flexible Expense

14. Internet Bill

15. Internet Bill
Fixed Expense

16. Tips

17. Tips
Income

18. Utilities

19. Utilities
Fixed Expense

20. Gifts from Family

21. Gifts from Family
Income

22. Savings

23. Savings
Fixed Expense

24. Car Registration

25. Car Registration
Fixed Expense

26. Eating Out

27. Eating Out
Flexible Expense

28. Scholarships

29. Scholarships
Income

30. Hobbies

31. Hobbies
Flexible Expense

32. Net Loss and Net Gain
Net Loss- have more expenses than income during that period on spending plan
Net Gain- more income than expenses

33. Spending Plan Process 6 Steps to the Spending Plan Process
Set financial goals
Organize
Decide
Implement
Control
Evaluate

34. 1. Set Financial Goals
Set financial goals. A financial goal should include the following elements- SMART
Specific: State exactly what is to be done with the money involved
Measurable: write the exact dollar amount
Attainable: determine how it can be reached
Realistic: do not set the goal for something unattainable
Time bound: Specifically state when goal needs to be reached

35. 2. Organize determine the appropriate recording format to use
select categories for the spending plan
select a time period

36. 3. Decide
make realistic decisions and estimates for the categories

37. 4. Implement put the spending plan into effect.
Keep records of all income and expense.

38. 5. Control Occurs simultaneously with implementation.
Record keeping allows you to realize potential problems.

39. 6. Evaluate
determine if the previous steps in the spending plan have worked.
Compare estimated amounts to the actual amounts or received or spent.
Have goals been met?
Assess the progress made toward goals.
Make necessary changes

40. Spending Plan Varies
Needs to have enough detail so a person knows where the money is going regardless of the amount
The categories listed on a spending plan will vary depending on your financial goals, values, needs and wants

41. Changes
A spending plan is something that is re-evaluated as lives and situations change

42.
How much will you get paid?
Depends on where you live

43. www.ksl.com or www.craigslist.com
Apartment in Utah - KSL
Outside of Utah - craigslist

44.
Major Purchase
engagement ring

45.
Major Purchase
A car