1. Diving Into Spending Plans!

2. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Today We ’ ll Talk About  Spending Plan - What is it? Why use it?  Income and Expense  Bean Game

3. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Almost half of all American families spend more money than they make  Why do you think this happens?.Living paycheck to paycheck

4. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Values, Needs, & Wants  What is a value? Give an example.  What is a need? Give an example.  What is a want? Give an example. Something that is not a necessity but is desired

5. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Spending Plan - What is it?  A spending plan is a budget  Spending plans are used to help people meet financial goals Includes income and expenses  Step #1: track your spending for 1 to 3 months

6. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Expenses  Fixed = expense that is the same every month  Flexible = expense that can vary every month

7. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Fixed or flexible? Rent/House payment Groceries Internet bill Utilities Student loan payment Credit card bill Car insurance Gas Car repairs Clothes Going out Car payment Netflix membership Saving

8. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Lee ’ s Spending Plan Example IncomeExpenses ItemAmountItemAmount Mowing a lawn$10.00Movie ticket and popcorn $15.00 Birthday gift$15.00Snack and drink$5.00 Total$25.00Total$20.00  Does Lee have enough income to pay his expenses?  If he would like to buy a new shirt for $15, does he have enough money?

9. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Process 1. Track your income and expenses for 1 to 3 months. 2. Analyze and identify how much you spend in each category (i.e. food, gas, phone, eating out) 3. Plan for how much you will spend, use recommended percentages and your spending diary 4. Track your spending

10. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Track your spending  3 methods to track spending: 1. Check register system – keep running balance 2. Envelope system – envelopes with cash for each category 3. Spending diary system – 4. Spending app

11. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1

12. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Your Turn!  Spending Plan Shake-Up…  Budget your beans to pay for the things you need and want  Each square is worth one bean and all the squares must be filled to have that item  Budget as if you are a senior in high school =

13. © Family Economics & Financial Education – Edited April 2007 – Get Ready to Take Charge of Your Finances – Diving Into Spending Plans Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.15.1.G1 Spending Plan Shake-Up!  Could you afford everything that you needed?  Could you afford everything that you wanted?  How does Spending Plan Shake-Up relate to real life?