1. He runs out of money each month before all of his expenses are paid
Meet Evan
Paid once per month
Puts enough money in his checking account to cover his expenses for the month
He runs out of money each month before all of his expenses are paid

2. How does Evan think he is spending his money?
Expense
Amount
Rent and Utilities
$500
Health insurance
$100
Renter’s Insurance
$10
Car insurance
$40
Gas
Groceries
Cell phone
$70
Personal care
$30
Entertainment
$50
Total
$1000
Evan created a list of all of his expenses
First allocates money to his savings account
Estimates that his remaining expenses will be no more than $1000/month:
But he runs out of money before the end of each month

3. Are you sure there isn’t anything else you spend your money on, Evan?
Well… I do purchase a cup of drip coffee almost every morning but that is only $1.00! And I usually eat lunch at a restaurant about once per week… but I didn’t think that added up to much money.
$1.00/
day
$30/ month
$365/
year
Lunch at $8.00/
week
$32/
month
$416/
year
Evan wasn’t accounting for $62.00 per month!

4. Help Evan Create an Income and Expense Statement
Create an Income and Expense Statement for Evan for the month of March
Gross Income $
Federal
Income Tax
$200.00
Social Security
$99.20
Medicare
$23.20
Net Income $
Evan has summarized the information from his March paycheck
This is Evan’s only source of income

5. Used an app on his smartphone to track his expenses
Evan’s Expenses
Used an app on his smartphone to track his expenses
3/1 – Automatic transfer to savings account $255.52
3/1 – $400 check for rent payment
3/1 – Health insurance $100
3/2 – Withdrew $20 in cash to purchase daily coffee
3/3 – Lunch $6.50
3/3 - Hockey game admission - $10
3/5 – Purchased gas for $40
3/6 – Movie theater ticket $7.50
3/7 – Groceries $52

6. Evan’s Expenses 3/10 – Lunch $8 3/12 – Basketball game admission $15
3/15 – Cell phone payment $70
3/15 – Car insurance payment $40
3/15 – Renter’s insurance payment $10
3/16 – Haircut $15
3/17 – Purchased gas for $40
3/20 – Lunch $7.50
3/25 – Bowling with friends $15
3/27 – Groceries $38
3/27 – Concert ticket - $45
3/28 – Purchased gas for $40
3/31 – Electricity payment $50
3/31 – Water payment $50

7. Evan’s Income and Expense Statement
Income and Expense Statement for:
Evan
Time Period:
March
Amount
Income
Earned Income
Wages or salary before deductions
Total Income
$1,600.00
Expenses
Deductions Often Taken from Paychecks
Federal Income Tax
200.00
Social Security (FICA)
99.20
Medicare
23.20
Saving and Investing (Pay Yourself First)
Contribution to savings and investments
255.52
Insurance Premiums
Health insurance, Medicaid and Medicare
100.00
Renters or homeowners insurance
10.00
Auto insurance
40.00
Housing Costs
Housing payment (rent or mortgage)
400.00
Utilities (gas, electricity, water, garbage)
Transportation Costs
Fuel (gasoline/diesel)
120.00
Food Costs
Food at the grocery store
90.00
Meals at restaurants
22.00
Snacks away from home (coffees, treats)
20.00
Communication and Computers
Cell phone
70.00
Clothing and Personal Care
Personal care (shampoo, haircuts, cosmetics)
15.00
Entertainment
Movies, books, and other entertainment
92.50
Total Expenses
$1,657.42
Net Gain or Net Loss (Income less Expenses)
-$57.42
Customize Evan’s statement by removing the categories and
sub-categories that you believe he doesn’t need
Net Loss
-$57.42

8. Discussion
According to Evan’s Income and Expense Statement, he has a net loss. What could he do to change his net loss to a net gain? What changes did you make to give him a net gain?

9. Discussion Were Evan’s mental calculations accurate?
What does this say regarding only thinking about your finances versus writing the information down?
How has creating an Income and Expense Statement helped Evan manage his money?
Expense
Amount
Rent and Utilities
$500
Health insurance
$100
Renter’s Insurance
$10
Car insurance
$40
Gas
Groceries
Cell phone
$70
Personal care
$30
Entertainment
$50
Total
$1000