Take Charge of Your Money Class 2: Spending Plans Heather Greenwood Virginia Cooperative Extension Fauquier County Office

Spending plans Set goals Determine income and expenses determine individual values distinguish between needs & wants Determine income and expenses Set monthly spending goals Stick to your goals Evaluate plan

Expenses Types of expenses Fixed Flexible Monthly Seasonal (Seasonal Expense Calendar) Timing of expenses (Handout 2-4 from All My Money)

Determine Expenses Reminder: include ALL expenses Tracking methods vending machine purchases credit purchases Tracking methods pocket tracker (Daily tracker) receipt box checkbook personalized method

Spending Plan Methods Envelope method Spreadsheet method What are your expense categories? What are the advantages of the envelope method? What are the negatives? Spreadsheet method Pocket tracker principle What are the advantages? What are the disadvantages?

Monthly goals Use last month’s tracked expenses to set goals for next month Are there areas you overspent? How can you reduce expenses in those categories? Keep tracking expenses to follow your progress

Reducing Money Gobblers Food gobblers convenience foods, fast food restaurants, lunches eaten out, soda/bottled water Utility gobblers excessive heating/cooling, lights left on Personal care gobblers regular manicures, expensive hair cuts/styles

Money Gobblers Fee gobblers Entertainment gobblers bank/credit card fees, bounced checks, late fees, interest rates Entertainment gobblers snacks at the movies, late video returns, home parties What are your money gobblers? Publications: Spending Less, 55 Ways to Save at the Grocery Store, & Handout 3-3 (All My Money)

Planning Food Expenses List meals your household will eat Are these meals nutritious? If not, what can you do to improve the nutrition? Plan meals for 1 week Make shopping list (Once-a-Month & Weekly) Plan food budget Monthly food allowance - monthly shopping = $ for weekly 4 weeks shopping

Step Down Theory* How do you get from here? To here? Eat out 4 times/week Less expensive rest/fewer times Grocery deli/frozen foods How do you get from here? Prepare from mixes Eat at home/bake from scratch To here? *Used with permission, Alena Johnson, Utah State University

Evaluation / Modification Did I stay within my monthly goals? Should I adjust next month’s goals? What worked with my plan? What didn’t work with my plan How can I make my spending plan fit my needs?

Failure isn’t when your spending plan doesn’t work, it’s Final Thought... Failure isn’t when your spending plan doesn’t work, it’s when you stop trying!