Introduction to Spending Plans! Introductory Level

Racing for the Money 1. Four Groups 2. A clue will be Read 3. On “GO” Each group needs sticky notes 2. A clue will be Read Group writes answer on a sticky note 3. On “GO” 1 team member runs and posts answer

Racing for the Money Quadrant Team 1   Team 2 Team 3 Team 4 One point for each group

What is an example of Income? Team 1   Team 2 Team 3 Team 4 One point for each group

What is an example of Expenses? Team 1   Team 2 Team 3 Team 4 One point for each group

What is a Net Gain? Team 1 Team 2 Team 3 Team 4   Team 2 Team 3 Team 4 One point for each group

What is a Net Loss? Team 1 Team 2 Team 3 Team 4   Team 2 Team 3 Team 4 One point for each group

What is a Spending Plan? Team 1 Team 2 Team 3 Team 4   Team 2 Team 3 Team 4 One point for each group

What can help us manage our spending? Think, Pair, Share 2 minutes to think or scan reading 2 minutes to discuss with a partner Randomly selected groups will share out with the class

SPENDING PLANS What is it? Why use one? A tool to help manage how you spend your money. Spending plans are used to help Track where money is going Identify income & expenses Meet financial goals

Spending Plan Terminology Income Expense Place Cards here: Money Earned Place Cards here: Money Spent

How do you make a spending plan? Tracking Income & Expenses Past Records Personalize How to keep track? Paper, Cell Phone, Computer Time Weekly, bi-weekly, monthly Categories Where do you spend? Create a category

Spending Plan Process (cont.) Money in Each Category Your past spending? Average percentages Determine Anticipated Spending Keep Track Keep records Cell, computer, receipts, paper? Evaluate & Adjust Did you overspend? Did you over estimate? Spending Plan Process (cont.)

Spending Plan Goal Goal is to have a zero balance Income greater than expenses = Net Gain Expenses greater than income = Net Loss

How did your “rollin” with it go? Sean is Rollin’ With It: 1. Roll the die 2. Fill in the blanks with the numbers rolled 3. Complete the spending plan with “rolled” numbers How did your “rollin” with it go?

Rolling out a… Net Gain Net Loss More Income than Expenses Any Adjustments? More Expenses than Income Any Adjustments?

Spending Plan Contents Income Expenses Salary & Wages Tax Returns Interest earned on Savings & Investments Money from others Food Housing & Utilities Transportation Savings Insurance Clothing Net Gain or Net Loss

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 he have a Net Gain or a Net Loss? If he would like to buy a new shirt for $15, can he?

In Conclusion A spending plan: A spending plan tracks: A Net Gain is: Is a tool to help people track their money A spending plan tracks: Income and expenses A Net Gain is: More income than expenses A Net Loss is: More expenses than income

In Conclusion Track Past Income and Expenses Personalize Determine Anticipated spending Track your Actual Income and Expenses Evaluate and Adjust

Your Turn! Budget your beans to pay for the things you need and want 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

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?