Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Welcome to Life in…United States …a Family Finance Simulation Developed by: Family Economics & Financial Education Project Take Charge America Institute - University of Arizona Funded by a grant from Take Charge America, Inc.

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Objectives  Create a spending plan  Incorporate the decision making process into daily life  Demonstrate the relationship between income and education  Provide realistic insights into the costs of living associated with the spending plan process

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 What is “Life In…” ?  Family finance simulation  Emulates the “real life” constraints households encounter when managing their finances  All costs are national averages –United States Census Bureau, United States Department of Labor, Bureau of Labor Statistics, United States Department of Agriculture, National Coalition on Health Care, and various private businesses  Simulation is an average community in the United States –25 individuals in 18 households

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Background information  Background Information –Describes individual and/or family values, needs and wants –Family dynamics and lifestyle choices are explained ? Who is in the community? ? Create a poster including your family name, all family members and ages, occupation(s), two things you value or enjoy doing, and interesting habits ? Who is in the community? ? Create a poster including your family name, all family members and ages, occupation(s), two things you value or enjoy doing, and interesting habits

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Career descriptions  Occupational Outlook Handbook guides –Nature of work, working conditions, training required, job outlook and earnings  Read carefully to learn more about your new identity ? Conditions of your job ? Identify 3 work conditions characteristic to your job, training required, and median earnings ? Conditions of your job ? Identify 3 work conditions characteristic to your job, training required, and median earnings

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 What are Spending plans?  Spending Plan –A financial statement used to assist in money management comprised of income and expenses  Income - money earned or received  Expenses - money spent –Fixed Expenses - stay the same every month, due on a certain date –Flexible Expenses - vary month to month, can be decreased or eliminated

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Major expenditure Percentages  Identify the average percent of net income spent in a specific category  Use as a guide when making spending decisions –Percentages should be adjusted to meet individual values, needs and wants  Other includes items such as: –Clothing –Personal care –Entertainment –Donations

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 What to complete  Goal of “Life in…” –Make spending plan decisions to meet the needs of the family by balancing their income and expenses  Assignments to complete –Setting a Financial Goal worksheet A1 –Guided Spending Plan worksheet A2 –Spending Plan Statement A3 –Life in…United States Reflection Essay B1

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Life in… United States

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Education vs. Income  Job announcement envelopes –The color your name is printed in on the front of the envelopes represents your obtained level of education –All children are printed in brown  Who is in our community? –Orange: less than 9 th grade –Light pink: high school drop out –Green: high school graduate or GED –Sky blue: some college –Red: associate’s degree –Navy: bachelor’s degree –Purple: graduate degree –Black: doctorate degree ? How does having individuals with various levels of education benefit a community?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Who are you?  Review your profile –Remember to consider the family’s values, needs and wants when making decisions  All items printed in red text must be included in the spending plan

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Setting a financial goal  Set a financial goal –Financial goals provide direction when creating a spending plan –Behind Spending Plan tab, complete each section of a SMART goal Review profile and consider the families values, needs and wants Set SMART financial goal –Complete question #2 on the Guided Spending Plan Don’t forget to include the dollar amount of the goal in the spending plan!

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Understanding the paycheck  Under the profile tab review the paycheck(s) for your scenario  Review all elements of a paycheck –Gross income –Payroll deductions –Net income ? Why do some paychecks have additional withholding for retirement and medical and others do not?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Complete the following:  Based upon your paycheck, complete question #3 in the Guided Spending Plan: –Record gross income –Record all paycheck deductions –Calculate net income  For dual-income families, add both paychecks together

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Saving  Saving versus Investing –Saving: income not spent on current consumption –Investing: spending intended to gain by adding to the assets, not available for immediate withdrawal  Saving –A person should save 10% of net income ? Why should families have 3-6 months income saved for emergencies?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Saving  Guided Spending Plan question #4  Calculate what 10% of your families net income is  Determine what amount you will be saving or investing and record it ? How much, if any, was dedicated to savings and why?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Insurance  Insurance, on average, is 7% of a households net income  Calculate what 7% of your households net income is  The information sheet describes basic terminology, how to determine insurance costs and various types of insurance –Review this to make the best spending plan decision

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Insurance HealthDisabilityLife What is it? Provides financial protection for injury and illness Replaces a portion of income if unable to work because of injury or illness Provides a specific sum of money to beneficiaries if an individual dies When is it needed? Always!Almost always If others depend upon an individual for financial support (families with children) May be provided by the employer

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Health Insurance 1.Determine if health insurance is provided by employer –If provided, analyze what family members are protected 2.If not provided, determine if it will be purchased separately 3.If so: –Identify the age of the oldest individual being covered –Review the appropriate plan 1 individual = single 2 individuals = single + dependent More than 2 = family plan –Select from the row of the appropriate age and column of the appropriate plan

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Disability Insurance 1.Determine if disability insurance is provided by employer 2.If not provided, determine if it will be purchased separately 3.If so: –Monthly net income x.02 = monthly cost

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Life Insurance 1.Determine if life insurance is provided by employer 2.If not provided, determine if it will be purchased separately  If so: –Identify who will be insured –Must be purchased for each individual being insured separately  Select the amount of coverage –$100,000 –$250,000 –$350,000  Determine if your scenario uses tobacco or not  Determine the monthly cost

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Insurance  Guided Spending Plan Question #8 –Determine if insurance is provided by employer or will be purchased –If necessary, select insurance options –Record all insurance expenses  Calculate your insurance sub-total –Is it approximately 7% of net income?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Insurance Reflection ? If insurance was not provided by the employer, how did insurance costs impact the spending plan? ? What factors influenced the choice whether or not to purchase insurance? ? If life insurance was selected, how was the coverage amount chosen? ? If disability insurance was not chosen, what would happen if an individual was injured and could not work for 6 months?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Housing  Housing, on average, is 30% of an households net income  Calculate what 30% of your families net income is  The information sheet describes basic terminology, renting vs. buying, mortgages and how to determine insurance costs and various types of insurance –Review this to make the best spending plan decision

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Housing Purchase  Assume a 20% down payment has been made on a 30-year mortgage with a 6% interest rate  Must include all items in red in your spending plan: –Mortgage –Insurance –Property taxes –Repairs and maintenance Rent  Assume a deposit has been made  Must include all items in red in your spending plan –Rent –Laundromat (when applicable)  If you have a pet, your rental unit must allow for them and applicable fees must be paid  Renter’s insurance is not required, but recommended – $15.83/mo. for $25,000 coverage Only choose a house available for the type of location in which you live!

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Housing Amenities  Required amenities –Power –Water/sewer –Garbage  Some rentals include all or some of the required amenities  Optional amenities –Internet –Cellular phone –Land line in home –Cable/Satellite –Recycling

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Housing  Guided Spending Plan Question #5 –Determine whether to rent or buy Unless indicated in the profile –Select a home and amenities –Record all housing expenses –Identify which housing and amenities options were chosen  Select additional housing expenses –Under the “Average Expenditures” tab –Record cost(s) in the “other” section  Calculate your housing sub-total –Is it approximately 30% of net income?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Housing Reflection ? What might influence a family to spend more or less than 30% of net income for housing? ? Will utility bills be higher during different seasons of the year? ? How does the housing selected fit with the family’s values, needs and wants? ? Did you choose to rent or purchase a home and why? ? Was renter’s insurance selected? Why or why not?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Transportation  Transportation, on average, is 20% of a households net income  Calculate what 20% of your households net income is  The information sheet describes basic terminology, new vs. used, automobile financing, how to determine insurance costs and various types of insurance –Review this to make the best spending plan decision

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Transportation Transportation options:  Purchasing new: –Not pre-owned, warranty, wide selection  Purchasing used: –Costs less, lower insurance rates, depreciates more slowly  Alternative options: –Less expensive than a vehicle –Availability is limited in some locations Things to know:  Assume down payment, license, registration and other fees have been paid  All items in red must be included in the spending plan –Payment –Insurance –Fuel costs –Repairs and maintenance  If an alternative option is chosen, it must be appropriate for the location Some profiles indicate transportation choices the family has made

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 31 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Transportation  Guided Spending Plan Question #6 –Determine new, used, or alternative options Unless indicated in the profile If a family already owns a vehicle, only insurance, fuel, and repairs and maintenance must be included –Select transportation –Identify which transportation option(s) was chosen –Record all transportation expenses  Calculate your transportation sub-total –Is it approximately 20% of net income?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 32 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Transportation Reflection ? What might influence a family to spend more or less than 20% of net income for transportation? ? How does the transportation selected fit with the family’s values, needs and wants? ? Did you choose new, used, or alternative options and why? ? What are ways a family can reduce their transportation expenses?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 33 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Food  Food, on average, is 15% of a households net income  Calculate what 15% of your households net income is

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 34 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Types of Food Plans  Thrifty –Generic brands –Canned fruits and vegetables –No junk food –Chicken and hamburger  Low-cost –Generic brands –Some fresh fruit and vegetables –Chicken, hamburger, turkey, ham  Moderate-cost –Mostly fresh fruit and vegetables –Both name brand and generic –Variety of meats  Liberal –Organic –Name brands –Fresh fruit and vegetables –Variety of meats including steak and lobster

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 35 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Food  Guided Spending Plan Question #7 –If the profile indicates the amount spent on food, record it –Food tab is for adults only –Cost of food at home for adults chart: Determine if you are allocating food for an individual or 2 adults Identify which food plan is affordable and fits with your scenario Identify the age of the adult(s) Record the food plan selected and amount

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 36 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Food  Cost of eating out –Go to the Average Expenditures tab –Analyze the average costs based upon income level –Determine and record the amount  Cost of food for children –Go to the Cost of Raising Children document behind the cost of raising children tab –Select the appropriate table based upon single or two-parent families and income –Record the proper amount in the “food at home” category  Calculate your food sub-total –Is it approximately 15% of net income?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 37 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Food Reflection ? How was the cost of food at home plan selected? ? Will the cost of food vary depending on where an individual lives? Why or why not? ? What impact does eating out have on a spending plan?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 38 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Costs of raising children  If you have children, go to the Cost of Raising Children tab 1.Select the appropriate table based upon single or two-parent families and income 2.Find the row for the oldest child 3.Add together the costs of: Clothing + Healthcare (could be reduced if insured) + Childcare + Education + Miscellaneous = Total cost

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 39 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Cost of Raising Children  Total cost is based on families with 2 children  If there are not two children: –Single parent family 1 child = total cost x or more children = total cost x.72 –Two-parent family 1 child = total cost x or more children = total cost x.77  Record total on the Guided Spending Plan #9 ? Will child care costs vary depending on where an individual lives? Why or why not?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 40 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Credit card statements America’s Debt  A 2007 survey of college students said that one-third of students reported having two credit cards or more, while 12% had three or more credit cards.  Many students believe they will make much more money after college than they will actually earn. Students take on debt because they expect to be able to repay it.  College students carry an average of $1,035 of credit card debt (this does not include college loans). Source: Buffalo State College, Financial Literacy Key to Prevent College Student Credit Card Debt, October 2007, ? Why do so many young people have credit card debt?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 41 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Credit card statements  Congratulations! –Your monthly credit card bill has arrived  Guided Spending Plan Question #10 –Identify how much debt, if any, was received –Need to include at least the minimum payment ? How will credit card debt impact other spending plan decisions? ? How long do you estimate it will take to pay off your debt?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 42 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Personal Profile Expenses  Review personal profile and record all expenses printed in red –Hobbies, activities, medical expenses, pets, charity donations, extra bills, habits, etc.  Expenses identified in red are valued or necessary and can not be eliminated  Incorporate any expenses not already included in the Average Expenditures section of the Guided Spending Plan question #11

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 43 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Average Expenditures  Guided Spending Plan Question # 11  Review the average expenditures for: –Entertainment –Personal Care –Health Care –Apparel & Services –Contributions –Education and Reading  Based upon your scenarios income level select expenses  These are flexible expenses based upon averages –Therefore, you may choose to allocate more or less money to each category  Record expenses and total them Remember to allocate enough money to cover all members of the family!

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 44 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Average Expenditures Reflection ? What average expenditures were selected and why? ? How do the expenses and amounts selected reflect your family’s values, needs, and wants? ? Did you chose to allocate more or less money in a certain category and why? ? If an individual is insured, why would they still have health care expenses?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 45 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Chance cards  Each day brings new surprises… –Why a spending plan is a “plan” for how to allocate your money –Spending plans are always evaluated and adjusted based upon life's events  Guided Spending Plan Question #12 –Identify what chance card was received –Incorporate that chance card into your spending plan

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 46 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Chance Cards Reflection ? Would insurance have protected against the risk? ? Are you financially prepared for unexpected events? ? What impact does the chance card have on your spending plan? ? If received, how was extra money allocated and why?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 47 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Balancing the spending plan  Guided Spending Plan Question #13 1.Transfer all income and expense subtotals throughout the worksheet onto this chart 2.Subtract the total expenses from the total income  Your balance must equal zero –Make changes as necessary If there is a net gain, where will the extra money be allocated? If there is a net loss, identify what changes may be made?  Identify decisions made to have the spending plan balance

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 48 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Evaluating your goal  Were you able to reach your SMART goal? –Why or why not?  Re-write your goal to reflect what your spending plan indicates  Guided Spending Plan Question #14 ? How did setting a goal before creating the spending plan help you make financial decisions?

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 49 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Creating the Spending Plan Statement  Write your revised goal on the Spending Plan Statement  Transfer all income and expense information to the Spending Plan Statement  Identify the percentage of net income spent on each category

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 50 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Discussion

Life In…United States G1 © Family Economics & Financial Education - Revised May Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 51 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona G2 Reflection ? How does your percent allocation in categories compare with the national average? ? If there was a net gain, how was the money allocated? ? How does this process emulate real life? ? If there was a net loss, what changes were made to the spending plan? ? How did working with a partner and discussing options influence decisions? Was it hard, easy?