Analyzing Spending Patterns in MAT 143 JONATHAN LOSS, CATAWBA VALLEY CC NCMATYC 2015 – GREENVILLE, NC

Common Statements From Students  “You have to have a lot of money to begin investing.”  “It’s too early in life for me to invest.”  “I don’t have any extra money that I could invest right now.”  “I’ll wait until I graduate and have a decent job before beginning to invest.” 2 3/13/2015 Analyzing Spending Patterns in MAT 143

Common Items That Students Purchase 3 3/13/2015 Analyzing Spending Patterns in MAT 143

Common Items That Students Purchase 4 3/13/2015 Analyzing Spending Patterns in MAT 143

Common Items That Students Purchase 5 3/13/2015 Analyzing Spending Patterns in MAT 143

Do I know where my money goes? According to Get Rich Slowly: Personal Finance That Makes Cents, almost two- thirds of millionaires can answer “Yes” to this question. In contrast to this, only 35% of high-income non-millionaires can answer “Yes” to this question. 6 3/13/2015 Analyzing Spending Patterns in MAT 143

The Bottom Line Very few people, much less traditional college students, know how much money they spend each month and to where it all goes. 7 3/13/2015 Analyzing Spending Patterns in MAT 143

Student Assignment  Housing (rent, mortgage, improvements to house, etc.)  Transportation (gas, car payments, airline tickets, etc.)  Food (groceries and meals eaten out, keep track of both types)  Healthcare (health insurance payments, doctor bills, medication (you don't have to list the types and reasons))  Entertainment (anything you do for fun that costs money)  Charity (gifts to church or other non-profit organizations)  Other (whatever else you spend that you can't seem to categorize) For one month, keep track of all spending in the following categories: 8 3/13/2015 Analyzing Spending Patterns in MAT 143

Finance Tracking Spreadsheet 9 3/13/2015 Analyzing Spending Patterns in MAT 143

Reflection Questions 10  Were there any surprises that you noticed in your spending patterns - things you didn't realize before?  Were you shocked at the amount of money that you spent during the month, or was it about like you would have expected?  In which categories did you find yourself spending the most money? The least money? 3/13/2015 Analyzing Spending Patterns in MAT 143

Reflection Questions 11  Are there any spending habits that you plan to change as a result of this exercise? If so, how?  Are there expenditures that you could eliminate in order to save money for retirement, or are all your expenditures necessities?  Do you feel you have a better handle on your finances after completing this exercise? 3/13/2015 Analyzing Spending Patterns in MAT 143

Student Feedback – Kevin 12 I wasn’t very surprised that most of the money I spent was on food…It is somewhat surprising that I am willing to spend $107 each month just to watch two shows. I will consider canceling my cable bill. I think if I lived alone then cable would be the first thing I would cut…I think if I made a spreadsheet every month I could save a lot of money and would reevaluate my expenses for the long run. 3/13/2015 Analyzing Spending Patterns in MAT 143

Student Feedback – Breann 13 This lab was really interesting for me to do. I have never tracked my spending before and really no clue what to expect going into this assignment. One of the biggest surprises for me during this lab [was] how much money I spent on food…I am known for just seeing something cute and buying it, but it really ended up biting me in the butt this month when my bills came due…Because of the lab that we did this month, I am going to give myself a budget for the money that I can spend on clothes each month. 3/13/2015 Analyzing Spending Patterns in MAT 143

Student Feedback – Breann 14 …Finances have never been something that I was great at, but I do feel like I am more aware now and can give myself a budget for at least some of the categories that I had for the month…I still don’t know that I will be doing any investing for my retirement honestly, but I feel like starting a healthy savings account will be a really good next step for me on my path to being a real adult. 3/13/2015 Analyzing Spending Patterns in MAT 143

Student Feedback – Jerry 15 The vast majority of my spending goes to entertainment…Are you horrified yet? I think there is a part of me that is, but I just shut it out by spending more. Maybe I should be investing this money into a savings/retirement account instead, but look! A sale on electronics! And there lies my problem…[I]f I were to sum up my financial situation it would be like milk that I have spilled. I’ll cry over it but instead of cleaning it up and learning from it, I go get another cup of milk and spill it again. 3/13/2015 Analyzing Spending Patterns in MAT 143

Student Feedback – Jerry 16 …In all seriousness though, I am grateful that you are teaching us things we can actually use in our real lives…Even if your students walk out of this class with an F, they’ve already learned something more important than classes they have A’s in because this knowledge will be more valuable in their life than the highest grade any teacher can give. 3/13/2015 Analyzing Spending Patterns in MAT 143

Contact Information 17 Jonathan Loss Math Instructor, Catawba Valley CC x4526 3/13/2015 Analyzing Spending Patterns in MAT 143