1. Spending and Saving Money
NIBOA Spending-Saving Module PPT
Spending and Saving Money

2. NIBOA Spending-Saving Module PPT
Introductions
INSTRUCTOR’S CONTACT INFO HERE
w/ logo where BANK ON logo is.
Introduce yourself and the lesson resources we will be utilizing.
Be sure to let them know that questions throughout the class are acceptable, but there will be time for questions at the end of the session.
Icebreaker: Pick one of following questions related to money to get the conversation going. Be sure to answer it for yourself. Feel free to make up your own topic question if preferred.
What is your goal as a participant in this class?
What do you like about money?
When’s last time you spent money?
What was the last thing you bought before coming to class?
Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of Illinois Extension.

3. NIBOA Spending-Saving Module PPT
Objectives
1. Understand how your spending affects your financial success.
2. Learn to balance income and spending through money-management techniques, such as:
Identifying needs vs. wants
Identifying spending leaks
Tracking expenses
Developing a spending-savings plan
“Money is an important part of our lives. Throughout each day we are constantly making decisions that affect how much money we have today and in the future. Today, our objectives are to understand how your spending affects your financial success by reviewing and rethinking current money habits and identifying ways to stabilize cash flow through creating a spending plan.”

4. NIBOA Spending-Saving Module PPT
How is your money life?
Are any of these statements true for you?
I run out of money before payday.
I worry about money.
I use credit cards to purchase food because I’m out of money.
I pay bills late sometimes.
I am frustrated by my financial situation.
I always have a balance on my credit card.
I don’t have a budget.
I don’t have any money saved.
“Money is an important part of our lives. Throughout each day we are constantly making decisions that affect how much money we have today and in the future. Today, our objectives are to understand how your spending affects your financial success by reviewing and rethinking current money habits and identifying ways to stabilize cash flow through creating a spending plan.”

5. NIBOA Spending-Saving Module PPT
Spending choices
Activity 1: Spending Choices budgeting game (20 minutes)
GOAL: To identify needs versus wants when making spending choices and strategize ways to adjust spending to accommodate financial challenges.
MATERIALS
Spending game sheets set per each group of 3 to 5 participants. If possible, lament in order to reuse.
20 beans and a small plastic bag per sheet set.
INSTRUCTION
Round 1: Divide participants into groups of 3 to 5 people.
Give each group a spending game sheet set and 20 beans. Each group should use the beans to mark their category selections they have chosen as a group. Beans can be moved around until the group comes to a final set of choices. The number of bean icons by an item indicates how many beans a choice costs. For example, renting a place of your own requires three beans.
Discussion questions:
How did your group decide where to place your beans? Did all members have equal say? Did needs versus wants affect these decisions?
Did you choose to leave out any categories? If so, why?
Round 2: One household member has lost their job or has had work hours significantly reduced. The household budget is now reduced. Each group must remove 7 beans from the spending line items. After all households have removed the 7 beans, explore why with some of the following questions:
What type of changes did you make in your budget? Share examples.
What was the first item you gave up when your income dropped?
What was the last item you were willing to give up?
Do you have savings in your budget? Did you lose it in the second round?
If you kept your savings, what did you give up in order to keep it?
If you had played the game by yourself, would the beans have been spent differently?

6. NIBOA Spending-Saving Module PPT
Is it a need or a want?
“In The Spending Game, you could see the whole picture. All of your income and expenses were in front of you. Some choices had to be made. Let’s compare that spending activity to what happens in your own lives. Each day you are confronted with many opportunities to spend money. How do you decide what to spend your money on? Do you follow a written spending-savings plan that includes your needs and wants? Do you buy an item because it is on sale? Or do you only purchase what you need when you need it?
A need is necessary for survival. A want is a desire but is not necessary for survival. For example, a car would be a need if it is good, reliable transportation. A car that is over equipped for the need would be a want. Example: a Mercury Sable vs. a loaded Ford Excursion. When there is a limited amount of money, we have to make choices. Our wants can be eliminated or delayed until there is more money.”
Optional activity if time: Is it a Need or Want? worksheet

7. How much are your little extras costing you?
NIBOA Spending-Saving Module PPT
How much are your little extras costing you?
Energy Drink @1.25 $445
App download @.75 $274
Snacks @$ $60
TOTAL: $779
“Let’s take this example for instance, say you purchase the following items on a daily or monthly basis:
Energy Drink - $1.25 x 365 days = $445
App Store Downloads - $0.75 x 365 days = $274
Snacks - $5 x 12 months = $60
That’s $ 779 on items that you probably could have done with out.”
= $14.98 each week

8. NIBOA Spending-Saving Module PPT
Save it?
Get caught up?
Pay bills?
Stock up?
“What would $15 more each week mean to you?” Encourage class participation.
“Let’s find out by tracking some of our individual want spending to see how it all adds up for you.”

9. How does it add up for you?
NIBOA Spending-Saving Module PPT
How does it add up for you?
Item
Price
How Often Purchased Each Week
Total Cost Each Week
Cost in One Year (x 52 weeks)
Candy bar
Snack food (chips, cookies)
Cigarettes
Pop
Beer/wine
Late fees on bills
Movies
Movie rentals
Magazines
Toys
Dining out
Lottery tickets
Cosmetics, nails
CDs, DVDs, etc.
Other item
TOTALS
Activity 2: Adding Up the Extras worksheet (10 minutes)
GOAL: To identify what they would be able to do differently if they adjusted their want spending.
MATERIALS
Adding Up the Extras worksheet
Writing utensils, pen or pencil
INSTRUCTION
In the first column, write the price for each item that you buy often.
In the second column, write down how often you buy the item each week.
In the third column (total weekly cost), multiply the price by the number of times the item was purchased to determine the total weekly cost.
In the fourth column, multiply by 52 to determine how much this item costs per year.
“How much do you see you could appropriate else where to meet your needs better?”

10. Money Strategies that Work
NIBOA Spending-Saving Module PPT
Money Strategies that Work
Pay yourself first
Track your spending
Make a spending-savings plan and stick to It
“Now that we know about how we’re spending our money, here are a few strategies on how to better spend and save your money.
- Pay Yourself First – by having a savings account and setting aside a certain amount every month.
- Track your spending – Keeping a record, whether on paper or electronically of where your money is going. By tracking your expenses you’ll be better gable to gauge your spending behavior to review and decide if best way to spend your money.
- Make a spending-savings plan and stick to it – This allows you to have peace of mind and avoid future pitfalls.
It’s your turn to put these strategies into action at home.”

11. Spending-Savings Plan
NIBOA Spending-Saving Module PPT
Spending-Savings Plan
What are your income sources?
What are your expenses?
Regular expenses
Controlled by you
“To end our class, we’ll go through this budget sheet so you have a better understanding of how to utilize it at home.”
Explain the budget forms via the two questions noted on the slide. Give examples is needed. Things to note: - Savings (Pay yourself first) is the first thing listed under Regular Expenses section.
- Regular expenses are categorized as needs-oriented expenses.
- Controlled expenses can potentially be more of a want expense than need expense.
Before they utilize, suggest that they may want to make copies of the bank copies for future use or go to NIBOA.org resource section to print additional copies.
Occasional Expenses section of the budget form:
One method of planning for occasional expenses is to set aside money each month for them. Then, when the bill arrives, the money will be there to pay it. Using the “Occasional Expenses Worksheet,” record the amount due under the month or months when the expense occurs. Divide the yearly cost by 12 to see how much to set aside each month for all of these occasional expenses. It is a good idea to put this money away, such as in a savings account, so that it will be available when needed.
After calculating how much you need to set aside, you may think that it is impossible to put that amount away monthly. It is just not available from your monthly income. Somehow, though, you have found the money in the months when these expenses occur, but it may have caused you stress and worry. You may have had to make decisions not to pay a bill completely or to take out a loan to cover the expenses. To avoid added financial stress, planning can be the key to success.
If this method still seems overwhelming to you, choose one or two categories to save for on a monthly basis. It may be a holiday or birthdays. Again, be sure to put the money in a savings account so that it is not used for an unplanned expense. You will soon realize the benefit to planning and saving for occasional expenses.

12. NIBOA Spending-Saving Module PPT
Try this at Home
Track your spending Create a spending-savings plan
“First, track your spending by:
using an envelope to store receipts
other expenses may be recorded in your check book or your bank/debit card statement
Snap a picture of your receipts and make an album on your phone for expenses or keep track of them in your notes section of your phone.
Second, create a spending-savings plan and here’s how.”
Handout – spending-savings budget sheets

13. NIBOA Spending-Saving Module PPT
Thank You!
INSTRUCTOR’S CONTACT INFO with logo HERE
“And, with that do you have any questions?”
Thank them for coming. At this time, hand out the evaluation form to fill out, then collect them once finished and exchange them for their course completion certificate.
If interested in attending more classes, direct them to the website – NIBOA.org
Handout – assessment/evaluation form and course certificate
Interested in another class? Visit NIBOA.org.
Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of IL Extension.