Life Of….. Taylor B. Jones Get ready to Take Charge of Your Finances Family Economics & Financial Education 3.19.1.G1 Get ready to Take Charge of Your Finances Life Of….. Taylor B. Jones “A Teenager’s Spending Plan”

Snapshot – Taylor B. Jones Sneak peak of the life of Taylor and his family Taylor Liz Ella Jerome

Snapshot Taylor’s Income and Expenses Cubby’s Restaurant & Grill $7.25/hour 10 hours a week $75.00/ month for tips Allowance $20.00/month Gifts $50.00 birthday gift

Snapshot Taylor’s Income and Expenses Taylor’s Expenses Transportation Fuel Other Items

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

Snapshot Jones Family Expenses Taylor’s Activities Motocross and chess Housing Monthly Payment Others – television, internet and telephone Transportation Family vehicle monthly payment and fuel Taylor’s vehicle monthly payment Insurance Homeowner’s, health, life, vehicle Food Groceries Eat out 5-10 times each month

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

Housing Others Satellite Dish Digital Cable Telephone Internet

Transportation Monthly Payment Jones Family Fuel Taylor Car payment Maintenance Fuel An average is listed This cost may increase/decrease depending on the cost of fuel Jones Family Pay for their vehicle monthly payment, fuel costs and Taylor’s monthly payment Taylor Pay for his vehicle’s fuel costs

Others Cellular Phone Motocross Upgrades Electronics Hobbies Entertainment Create Your Own

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

Quick Review Jones Family Taylor, Liz, Ella, Jerome Create a Major Expenditures Summary for the Jones’ Housing Transportation Create a Spending Plan for Taylor Savings Transportation fuel costs Others

Snapshot Reflection Review Taylor’s Snapshot on pages 2-4 Answer questions 1-5

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

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

Taylor’s Paycheck Gross Pay The total amount of money earned during the pay period before payroll withholdings.

Taylor’s Paycheck Payroll Withholdings The amount of money subtracted from the gross pay for taxes. Payroll Withholdings

Taylor’s Paycheck Withholding Tax The amount required by law for employer to withhold from earned wages to pay taxes. Withholding Tax

Taylor’s Paycheck FICA Federal Insurance Contribution Act – includes Social Security and Medicare FICA

Taylor’s Paycheck Net Pay The amount of money left after all payroll withholding have been taken from the gross pay.

Taylor’s Paycheck Year-to-Date Totals of all 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 Financial Goals Short Term – less than one year Long Term – more than one year

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

Jones’ Major Expenditures Transportation Choose a vehicle for the Jones family and Taylor Refer to the Snapshot on pages 2-4 Remember Family size Neighborhood carpool

Jones’ Major Expenditures Major Expenditures Summary Transfer numbers to complete the summary

Taylor’s Spending Plan Payroll Withholdings Review Taylor’s paycheck on page 11 State Withholding Tax Federal Withholding Tax FICA

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

Taylor’s Spending Plan Transportation Taylor will pay for his fuel He needs a vehicle to get to and from work Refer to page 14 to see which vehicle has been chosen for Taylor If a different vehicle is desired, changes must be made on the Jones’ Major Expenditures page

Taylor’s Spending Plan Others Choose which “others” items Taylor would like Cellular Phone Motocross Upgrades Electronics Clothing Not an option on pages 8-9 Write a dollar amount on line FF if desired Hobbies Entertainment Create Your Own Draw an item and list the cost in the space provided

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

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

Reflection Questions Once the difference equals zero…. Answer questions 18-22 throughout the simulation Answer questions 23-27 on page 18