1. Take Charge of Your Money Class 2: Spending Plans
Heather Greenwood
Virginia Cooperative Extension
Fauquier County Office

2. Spending plans Set goals Determine income and expenses
determine individual values
distinguish between needs & wants
Determine income and expenses
Set monthly spending goals
Stick to your goals
Evaluate plan

3. Expenses Types of expenses
Fixed
Flexible
Monthly
Seasonal (Seasonal Expense Calendar)
Timing of expenses (Handout 2-4 from All My Money)

4. Determine Expenses Reminder: include ALL expenses Tracking methods
vending machine purchases
credit purchases
Tracking methods
pocket tracker (Daily tracker)
receipt box
checkbook
personalized method

5. Spending Plan Methods Envelope method Spreadsheet method
What are your expense categories?
What are the advantages of the envelope method?
What are the negatives?
Spreadsheet method
Pocket tracker principle
What are the advantages?
What are the disadvantages?

6. Monthly goals
Use last month’s tracked expenses to set goals for next month
Are there areas you overspent?
How can you reduce expenses in those categories?
Keep tracking expenses to follow your progress

7. Reducing Money Gobblers
Food gobblers
convenience foods, fast food restaurants, lunches eaten out, soda/bottled water
Utility gobblers
excessive heating/cooling, lights left on
Personal care gobblers
regular manicures, expensive hair cuts/styles

8. Money Gobblers Fee gobblers Entertainment gobblers
bank/credit card fees, bounced checks, late fees, interest rates
Entertainment gobblers
snacks at the movies, late video returns, home parties
What are your money gobblers?
Publications: Spending Less, 55 Ways to Save at the Grocery Store, & Handout 3-3 (All My Money)

9. Planning Food Expenses
List meals your household will eat
Are these meals nutritious?
If not, what can you do to improve the nutrition?
Plan meals for 1 week
Make shopping list (Once-a-Month & Weekly)
Plan food budget
Monthly food allowance - monthly shopping = $ for weekly 4 weeks shopping

10. Step Down Theory* How do you get from here? To here?
Eat out 4 times/week
Less expensive rest/fewer times
Grocery deli/frozen foods
How do you get from here?
Prepare from mixes
Eat at home/bake from scratch
To here?
*Used with permission, Alena Johnson, Utah State University

11. Evaluation / Modification
Did I stay within my monthly goals?
Should I adjust next month’s goals?
What worked with my plan?
What didn’t work with my plan
How can I make my spending plan fit my needs?

12. Failure isn’t when your spending plan doesn’t work, it’s
Final Thought...
Failure isn’t when
your spending plan
doesn’t work, it’s
when you stop trying!