Get ready to Take Charge “A Teenager’s Spending Plan” Family Economics & Financial Education 3.19.5.G1 Get ready to Take Charge of Your Finances Life Of….. Carlos Chavez “A Teenager’s Spending Plan”

Snapshot – Carlos Chavez Sneak peak into the life of Carlos and his family Carlos Nana (Martha) Jorge María Adriana Marco

Snapshot Carlos' Income and Expenses Sunshine Inn $8.50/hour 10 hours a week

Snapshot Carlos' Income and Expenses Carlos' Expenses Extracurricular Activities Youth group ski trip $5.00 per month Track expenses $2.50 per month Transportation $100.00 Saving Family Support $40.00 per month College expenses $50.00 per month Lunch $24.00per month Others

Spending Plan The goal is to create a spending plan that balances Carlos' expenses with his income. He cannot have more expenses than income. Spending Plan Financial statement Tracks income and expenses Used to assist with money management and help the family reach financial goals An family’s perception of needs, wants and values will affect decisions made when creating a spending plan

Snapshot Chavez Family Expenses Carlos' Expenses Housing Monthly Payment Utilities Others – television, internet and telephone Transportation Vehicle for María Monthly payment and fuel Bus pass for Jorge Insurance Homeowners, disability, life, auto, and health Food Groceries School lunches Savings and Debt Savings of $125 per month for retirement and future college expenses Monthly medical payments of $155.00

Housing Monthly Payment Utilities Housing payment Heat Insurance Property taxes Repairs Maintenance Utilities Heat Electricity Water Sewer Garbage

Housing Others Digital Cable Add Ons Telephone Cellular Phone Internet

Transportation Monthly Payment Fuel Chavez Family Bus Pass Car payment Maintenance Fuel An average is listed This cost may increase/decrease depending on the cost of fuel Chavez Family Pay for María's monthly payment and fuel costs Bus Pass

Others Running Supplies Downhill Ski Supplies Electronics Video Games Entertainment Cellular Phone Create Your Own

Goal: To Create A Balance Spending Plan Make all choices for the Chavez family and Carlos Complete a Major Expenditures Summary for the Chavez family Complete a Spending Plan for Carlos Answer reflection questions Write a summary essay

Quick Review Chavez Family Carlos, Nana (Martha), Jorge, María, Adriana, Marco Create a Major Expenditures Summary for the Chavez Family Housing Transportation Create a Spending Plan for Carlos Extracurricular Activities School Lunches Savings Others

Snapshot Reflection Review Carlos' Snapshot on pages 2-4 Answer questions 1-5 on page 10

Carlos' Paycheck Personal Information State the employee’s name, address, and social security number.

Carlos' Paycheck Pay Period The length of time which an employee’s wages are calculated.

Carlos' Paycheck Gross Pay The total amount of money earned during the pay period before payroll withholdings.

Carlos' Paycheck Payroll Withholdings The amount of money subtracted from the gross pay for taxes. Payroll Withholdings

Carlos' Paycheck Withholding Tax The amount required by law for employer to withhold from earned wages to pay taxes. Withholding Tax

Carlos' Paycheck Federal Insurance Contribution Act – includes Social Security and Medicare FICA

Carlos' Paycheck Net Pay The amount of money remaining after all payroll withholdings have been removed from gross pay.

Carlos' Paycheck Year-to-Date Totals of the deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period indicated on the paycheck stub. Year-to-Date

Setting Education and Financial Goals SMART Goal Specific State exactly what is to be done. Measurable Include how the goal can be measured. Attainable Determine steps to reach the goal. Realistic Do not set the goal for something unrealistic. Time Bound State when the goal will be met. Short Term – less than one year Long Term – more than one year

Chavez’s Major Expenditures Housing Choose a house and housing others for the Chavez family Refer to the Snapshot on pages 2-4 Remember Family size Lifestyle Other family dynamics

Chavez’s Major Expenditures Transportation Choose a vehicle for María Refer to the Snapshot on pages 2-4 Remember They need enough room in the vehicle for the family and supplies when they take trips together

Chavez’s Major Expenditures Major Expenditures Summary Transfer numbers to complete the summary Total housing cost Total transportation cost Insurance Food Savings and Debit Each month $125.00 is saved for retirement and future college expenses Each month $155.00 is paid to help a medical debt of $11,000

Carlos' Spending Plan Payroll Withholdings Review Carlos' paycheck on page 11 State Withholding Tax Federal Withholding Tax FICA

Carlos' Spending Plan Savings Review Carlos' Snapshot on pages 2-4 Identify his needs, wants, values Review the short term and long term goals set for Carlos on page 12

Carlos' Spending Plan Others Extracurricular Activities School Lunches Choose which “others” items Carlos would like Running Supplies Downhill Ski Supplies Electronics Video Games Entertainment Create Your Own Draw an item and identify the cost in the space provided

Carlos' Spending Plan Summary Gross Income Expenses Calculate the Difference If the difference is a negative number, go back and adjust some of Carlos' expenses.

Negative or Positive Difference? If the number on XX is positive, adjust Carlos' expenses. Saving additional money for unexpected emergencies or expenses may be a good idea. If the number on XX is negative, go back and make adjustments to Carlos' expenses. Changes need to be made consistently throughout the simulation. Keep in mind Carlos' needs, wants, values and goals when making changes. If the number on XX is zero, congratulations! You have balanced Carlos' Spending Plan!

Reflection Questions Once the difference equals zero…. Answer questions 17-22 on pages 15 and 16 Answer questions 23-27 on page 18