1. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona STATEMENT OF FINANCIAL POSITION AND INCOME AND EXPENSE STATEMENT ADVANCED LEVEL

2. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona THE COSTS ADD UP How much do you think each item would cost if purchased every day for one month? Item Average Cost of Item Approximate Cost Per Month if purchased every day Approximate Cost Per Year if purchased every day 16 oz. soda $1.00 - $2.00 $30.00 - $60.00 $365.00 - $730.00 16 oz. energy or sports drink $2.00 - $3.00 $60.00 - $90.00 $730.00 - $1095.00 Candy bar $0.75 - $1.25$22.50 – $37.50 $273.75 - $456.25 16 oz. Latte’ or flavored coffee $2.50 -$3.50 $75.00 - $105.00 $912.50 – $1277.50

3. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Income and Expense Statement - lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year THE INCOME AND EXPENSE STATEMENT

4. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona THREE COMPONENTS Income Expenses Net gain or net loss

5. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona WHAT IS INCOME?

6. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona INCOME CATEGORIES Unearned income – income received from sources other than employment Received Income from Government Programs – offer a form of income, usually temporary Earned income – any money earned from work

7. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona WHAT ARE EXPENSES?

8. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Taxes Saving and Investing Insurance Housing Transportation Food Other EXPENSE CATEGORIES Expenses will vary for every person

9. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona EXPENSE CATEGORIES Variable Expenses are those that change each time period Fixed Expenses are expenses that remain the same each time period

10. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona NET GAIN OR NET LOSS Net loss

11. 2.2.3.G1 © Take Charge Today –August 2013– Statement of Financial Position – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona FIND A TRACKING METHOD THAT WORKS FOR YOU A written system is more effective than a mental system – like Evan you can trick yourself into thinking you spend less than you do! Record in writing Smartphone Keep receipts Depository institution account statements Money management computer software program