1. Get ready to Take Charge “A Teenager’s Spending Plan”
Family Economics & Financial Education
Get ready to Take Charge
of Your Finances
Life Of…..
Ben West
“A Teenager’s Spending Plan”
Funded by a grant from Take Charge America, Inc.

2. Snapshot – Ben West Sneak peak into the life of Ben and his family Ben
James
Brenda
Anna

3. Snapshot Ben’s Income and Expenses
Lou’s Logging Service
$13.00/hour
15 hours a week

4. Snapshot Ben’s Income and Expenses
Ben’s Expenses
Social activities with Maria
$75
Cellular Phone
Monthly budget is $50, however Ben often uses more minutes than the plan allows and sends numerous text messages thus increasing his bill
Spends $90
Saving
$200
Other Items

5. Spending Plan
The goal is to create a spending plan that balances Ben’s expenses with his income.
He can not have more expenses than 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 West Family Expenses
Ben’s Expenses
Housing
Monthly Payment
Utilities
Others – television, internet and telephone
Transportation
Vehicle for Ben and Brenda
Monthly payment and fuel
Insurance
Homeowners, disability, life, auto, and health
Food
Groceries
Pack daily lunches with leftovers
Credit Card Balance
Currently have $6,500 in credit card debt
Monthly minimum payment is $160
They often do not have enough to pay more than the minimum balance

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

8. Housing Others Local Antenna Satellite Dish Digital Cable Telephone
Internet

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

10. Others Dirt bike tools and upgrades Snowboarding Electronics Hunting
Entertainment
Create Your Own

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

12. Quick Review West Family
Ben, James, Brenda, Anna
Create a Major Expenditures Summary for the West’s
Housing
Transportation
Create a Spending Plan for Ben
Social Activities
Cellular Phone
Savings
Others

13. Snapshot Reflection Review Ben’s Snapshot on pages 2-4
Answer questions 1-5 on page 10

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

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

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

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

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

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

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

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

24. West’s Major Expenditures Transportation
Choose a vehicle for the Ben and Brenda
Refer to the Snapshot on pages 2-4
Remember
Ben and Brenda will share the vehicle

25. West’s Major Expenditures Major Expenditures Summary
Transfer numbers to complete the summary
Total housing cost
Total transportation cost
Insurance
Food
Credit Card Balance
West family usually only pays the minimum monthly payment
If they continue this habit, their $6,500 debt will cost $9,120
It will take 4.75 years to pay in full if only the minimum payment is paid each month

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

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

28. Ben’s Spending Plan Others
Social activities with Maria
Cellular phone
How could Ben decrease the amount spent on his cell phone each month?
Choose which “others” items Ben would like
Dirt bike tools and upgrades
Snowboarding
Electronics
Hunting
Entertainment
Create Your Own
Draw an item and identify the cost in the space provided

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

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

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