Diving Into Spending Plans!

OBJECTIVE SWBAT recall consumer issues and demonstrate financial literacy skills to manage resources and achieve goals.

ESSENTIAL QUESTIONS What skills and resources are necessary for financial management and the achievement of goals? What are the components of financial literacy? What does it mean to be financial responsible?

Today We’ll Talk About Spending Plan - What is it? Why use it? Income and Expense Bean Game

Almost half of all American families spend more money than they make. Why do you think this happens? People do not make enough money People spend too much money One point to each group that answers, each group gets a chance… Write on paper

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 One point for each group

Spending Plan - What is it? A spending plan is A tool to help people manage their money

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

A Spending Plan Tracks….. Income Money Earned Expense Money Spent

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

Income or Expense? Rent/House payment Hobbies Paycheck Car repairs 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

Spending Plan Contents Income Expenses Housing Utilities Transportation Savings Expenses Food Insurance Clothing Other

Lee’s Spending Plan Example Income Expenses Item Amount Mowing a lawn $10.00 Movie ticket and popcorn $15.00 Birthday gift Snack and drink $5.00 Total $25.00 $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?

In Conclusion A spending plan is A spending plan is based on 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

The End!