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

2. Snapshot – Taylor B. Jones
Sneak peak of the life of Taylor and his family
Taylor
Liz
Ella
Jerome

3. Snapshot Taylor’s Income and Expenses
Cubby’s Restaurant & Grill
$7.25/hour
10 hours a week
$75.00/ month for tips
Allowance
$20.00/month
Gifts
$50.00 birthday gift

4. Snapshot Taylor’s Income and Expenses
Taylor’s Expenses
Transportation
Fuel
Other Items

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

6. Snapshot Jones Family Expenses
Taylor’s Activities
Motocross and chess
Housing
Monthly Payment
Others – television, internet and telephone
Transportation
Family vehicle monthly payment and fuel
Taylor’s vehicle monthly payment
Insurance
Homeowner’s, health, life, vehicle
Food
Groceries
Eat out 5-10 times each month

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

8. Housing Others
Satellite Dish
Digital Cable
Telephone
Internet

9. Transportation Monthly Payment Jones Family Fuel Taylor Car payment
Maintenance
Fuel
An average is listed
This cost may increase/decrease depending on the cost of fuel
Jones Family
Pay for their vehicle monthly payment, fuel costs and Taylor’s monthly payment
Taylor
Pay for his vehicle’s fuel costs

10. Others Cellular Phone Motocross Upgrades Electronics Hobbies
Entertainment
Create Your Own

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

12. Quick Review Jones Family
Taylor, Liz, Ella, Jerome
Create a Major Expenditures Summary for the Jones’
Housing
Transportation
Create a Spending Plan for Taylor
Savings
Transportation fuel costs
Others

13. Snapshot Reflection Review Taylor’s Snapshot on pages 2-4
Answer questions 1-5

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

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

16. Taylor’s Paycheck Gross Pay
The total amount of money earned during the pay period before payroll withholdings.

17. Taylor’s Paycheck Payroll Withholdings
The amount of money subtracted from the gross pay for taxes.
Payroll Withholdings

18. Taylor’s Paycheck Withholding Tax
The amount required by law for employer to withhold from earned wages to pay taxes.
Withholding Tax

19. Taylor’s Paycheck FICA
Federal Insurance Contribution Act – includes Social Security and Medicare
FICA

20. Taylor’s Paycheck Net Pay
The amount of money left after all payroll withholding have been taken from the gross pay.

21. Taylor’s Paycheck Year-to-Date
Totals of all 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 Financial Goals
Short Term – less than one year
Long Term – more than one year

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

24. Jones’ Major Expenditures Transportation
Choose a vehicle for the Jones family and Taylor
Refer to the Snapshot on pages 2-4
Remember
Family size
Neighborhood carpool

25. Jones’ Major Expenditures Major Expenditures Summary
Transfer numbers to complete the summary

26. Taylor’s Spending Plan Payroll Withholdings
Review Taylor’s paycheck on page 11
State Withholding Tax
Federal Withholding Tax
FICA

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

28. Taylor’s Spending Plan Transportation
Taylor will pay for his fuel
He needs a vehicle to get to and from work
Refer to page 14 to see which vehicle has been chosen for Taylor
If a different vehicle is desired, changes must be made on the Jones’ Major Expenditures page

29. Taylor’s Spending Plan Others
Choose which “others” items Taylor would like
Cellular Phone
Motocross Upgrades
Electronics
Clothing
Not an option on pages 8-9
Write a dollar amount on line FF if desired
Hobbies
Entertainment
Create Your Own
Draw an item and list the cost in the space provided

30. Taylor’s Spending Plan Summary
Gross Income
Expenses
Calculate the Difference
If the difference is a negative number, go back and adjust some of Taylor’s expenses.

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

32. Reflection Questions Once the difference equals zero….
Answer questions throughout the simulation
Answer questions on page 18