1. Diving Into Spending Plans!

2. © 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 2.15.1.G1 Today We’ll Talk About  Spending Plan - What is it? Why use it?  Income and Expense  Bean Game

3. © 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 2.15.1.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.

4. © 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 2.15.1.G1 Values, Needs, & Wants  What is a value? Give an example. A belief about what is important to a person  What is a need? Give an example. Something that is a necessity  What is a want? Give an example. Something that is not a necessity but is desired

5. © 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 2.15.1.G1 Spending Plan - What is it?  A spending plan is A tool to help people manage their money

6. © 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 2.15.1.G1 Spending Plan - Why use 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

7. © 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 2.15.1.G1 A Spending Plan Tracks…..  Income Money Earned  Expense Money Spent

8. © 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 2.15.1.G1 Game Time!  Income  Expense As each item is read, stand up and move to the appropriate game card.

9. © 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 2.15.1.G1 Income or Expense? Rent/House payment Paycheck Groceries Internet bill Winning the lottery Utilities Putting money into a piggy bank Hobbies Car repairs Clothes Birthday money MP3 player Using savings to buy a skateboard

10. © 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 2.15.1.G1 Spending Plan Contents  Income  Expenses Housing Utilities Transportation Savings  Expenses Food Insurance Clothing Other

11. © 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 2.15.1.G1 Lee’s Spending Plan Example IncomeExpenses ItemAmountItemAmount Mowing a lawn$10.00Movie ticket and popcorn $15.00 Birthday gift$15.00Snack and drink$5.00 Total$25.00Total$20.00  Does Lee have enough income to pay his expenses?  If he would like to buy a new shirt for $15, does he have enough money?

12. © 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 2.15.1.G1 In Conclusion  A spending plan is A tool to help people track their money  A spending plan is based on Values, wants, and needs  A spending plan tracks Income and expenses

13. The End!

14. © 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 2.15.1.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  Budget as if you are a senior in high school =

15. © 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 2.15.1.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?