1. Get ready to Take Charge “A Teenager’s Spending Plan”
Family Economics & Financial Education G1
Get ready to Take Charge
of Your Finances
Life Of…..
Carlos Chavez
“A Teenager’s Spending Plan”

2. Snapshot – Carlos Chavez
Sneak peak into the life of Carlos and his family
Carlos
Nana (Martha)
Jorge
María
Adriana
Marco

3. Snapshot Carlos' Income and Expenses
Sunshine Inn
$8.50/hour
10 hours a week

4. Snapshot Carlos' Income and Expenses
Carlos' Expenses
Extracurricular Activities
Youth group ski trip
$5.00 per month
Track expenses
$2.50 per month
Transportation
$100.00
Saving
Family Support
$40.00 per month
College expenses
$50.00 per month
Lunch
$24.00per month
Others

5. Spending Plan
The goal is to create a spending plan that balances Carlos' expenses with his income.
He cannot have more expenses than income.
Spending Plan
Financial statement
Tracks income and expenses
Used to assist with money management and help the family reach financial goals
An family’s perception of needs, wants and values will affect decisions made when creating a spending plan

6. Snapshot Chavez Family Expenses
Carlos' Expenses
Housing
Monthly Payment
Utilities
Others – television, internet and telephone
Transportation
Vehicle for María
Monthly payment and fuel
Bus pass for Jorge
Insurance
Homeowners, disability, life, auto, and health
Food
Groceries
School lunches
Savings and Debt
Savings of $125 per month for retirement and future college expenses
Monthly medical payments of $155.00

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

8. Housing Others
Digital Cable
Add Ons
Telephone
Cellular Phone
Internet

9. Transportation Monthly Payment Fuel Chavez Family Bus Pass Car payment
Maintenance
Fuel
An average is listed
This cost may increase/decrease depending on the cost of fuel
Chavez Family
Pay for María's monthly payment and fuel costs
Bus Pass

10. Others Running Supplies Downhill Ski Supplies Electronics Video Games
Entertainment
Cellular Phone
Create Your Own

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

12. Quick Review Chavez Family
Carlos, Nana (Martha), Jorge, María, Adriana, Marco
Create a Major Expenditures Summary for the Chavez Family
Housing
Transportation
Create a Spending Plan for Carlos
Extracurricular Activities
School Lunches
Savings
Others

13. Snapshot Reflection Review Carlos' Snapshot on pages 2-4
Answer questions 1-5 on page 10

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

15. Carlos' Paycheck Pay Period
The length of time which an employee’s wages are calculated.

16. Carlos' Paycheck Gross Pay
The total amount of money earned during the pay period before payroll withholdings.

17. Carlos' Paycheck Payroll Withholdings
The amount of money subtracted from the gross pay for taxes.
Payroll Withholdings

18. Carlos' Paycheck Withholding Tax
The amount required by law for employer to withhold from earned wages to pay taxes.
Withholding Tax

19. Carlos' Paycheck
Federal Insurance Contribution Act – includes Social Security and Medicare
FICA

20. Carlos' Paycheck Net Pay
The amount of money remaining after all payroll withholdings have been removed from gross pay.

21. Carlos' Paycheck Year-to-Date
Totals of 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

22. Setting Education and Financial Goals
SMART Goal
Specific
State exactly what is to be done.
Measurable
Include how the goal can be measured.
Attainable
Determine steps to reach the goal.
Realistic
Do not set the goal for something unrealistic.
Time Bound
State when the goal will be met.
Short Term – less than one year
Long Term – more than one year

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

24. Chavez’s Major Expenditures Transportation
Choose a vehicle for María
Refer to the Snapshot on pages 2-4
Remember
They need enough room in the vehicle for the family and supplies when they take trips together

25. Chavez’s Major Expenditures Major Expenditures Summary
Transfer numbers to complete the summary
Total housing cost
Total transportation cost
Insurance
Food
Savings and Debit
Each month $ is saved for retirement and future college expenses
Each month $ is paid to help a medical debt of $11,000

26. Carlos' Spending Plan Payroll Withholdings
Review Carlos' paycheck on page 11
State Withholding Tax
Federal Withholding Tax
FICA

27. Carlos' Spending Plan Savings
Review Carlos' Snapshot on pages 2-4
Identify his needs, wants, values
Review the short term and long term goals set for Carlos on page 12

28. Carlos' Spending Plan Others
Extracurricular Activities
School Lunches
Choose which “others” items Carlos would like
Running Supplies
Downhill Ski Supplies
Electronics
Video Games
Entertainment
Create Your Own
Draw an item and identify the cost in the space provided

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

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

31. Reflection Questions Once the difference equals zero….
Answer questions on pages 15 and 16
Answer questions on page 18