Creating a Spending Plan Law in American Society

What do you spend your money on? Think of how you spend your money... What do you spend most of it on? What are things you spend your money on that you can’t live without? What, if money was tight, would you avoid buying?

Values, Needs & Wants How does what you value, need, and want affect your spending?

© Take Charge Today – December 2010 –Major Expenditure Mania – Slide What is a Spending Plan? 1.6.3.G1 Income – money earned Expense – money spent Everyone has an individualized spending plan © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Why is it important to create a spending plan? Helps to determine needs versus wants Prevents overspending © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

© Take Charge Today – December 2010 –Major Expenditure Mania – Slide Calculating Income 1.6.3.G1 How do I calculate my net income? © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Calculating Income Spending plan expenses paid from net income © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

What are Major Expenditures? 1.6.3.G1 Savings Major Expenditures- largest expenses in most spending plans Insurance Food Major Expenditures Housing Transportation © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Typical Major Expenditure Amounts 1.6.3.G1 Typical Major Expenditure Amounts A reference when creating a spending plan Provides guidance Can adjust percentages to meet individual values, needs, wants © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

What expenses are not included in the major expenditure categories? © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Major Expenditure Doing the Math Let’s calculate what Anita would typically spend in each major expenditure category. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

© Take Charge Today – December 2010 –Major Expenditure Mania – Slide Doing the Math 1.6.3.G1 On your own, calculate how the Kim family would spend their money in each major expenditure category. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

© Take Charge Today – December 2010 –Major Expenditure Mania – Slide Doing the Math 1.6.3.G1 Now let’s calculate what percentage of his total net income Dominick spends in each of the expenditure categories. © Take Charge Today – December 2010 –Major Expenditure Mania – Slide Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona