SPENDING PLAN

Spending Plan  A spending plan is a financial statement you can use to assist in money management  also known as a budget

Set Financial Goals Set financial goals. A financial goal should include the following elements- SMART  Specific  Measurable  Attainable  Realistic  Time bound

Cash Flow  A measure of the money you receive and the money you spend.

Why is a Spending Plan important?  Giving a person an understanding of where their money is going  Tracking income and expenses  Help meet financial goals  Help people live within their income and make ends meet  Reduce the need for using credit

Sources of Income  Wages or Salaries  Tips  Withdrawal from savings  Interest earned on savings accounts  Scholarships  Monetary gifts

2 Main Components Income: money earned Expense: money spent 2 types of Expenses  Fixed- have to be paid by specific date  (Food, housing, electricity)  Flexible- have to be paid off but often not by certain date  (Food, goals, etc.)

Rent

Fixed Expense Rent

Wages

Income Wages

Groceries

Flexible Expense Groceries

Internet Bill

Fixed Expense Internet Bill

Tips

Income Tips

Utilities

Fixed Expense Utilities

Gifts from Family

Income Gifts from Family

Savings

Fixed Expense Savings

Car Registration

Fixed Expense Car Registration

Eating Out

Flexible Expense Eating Out

Scholarships

Income Scholarships

Hobbies

Flexible Expense Hobbies

Net Loss and Net Gain  Net Loss- have more expenses than income during that period on spending plan  Net Gain- more income than expenses

How much will you get paid? Depends on where you live