1. Family Economics & Financial Education 3.19.1.G 1 Get ready to Take Charge of Your Finances Life Of….. Taylor B. Jones “A Teenager’s Spending Plan”

2. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Snapshot – Taylor B. Jones Sneak peak of the life of Taylor and his family –Taylor –Liz –Ella –Jerome

3. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Snapshot Taylor’s Income and Expenses Taylor’s Income –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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Snapshot Taylor’s Income and Expenses Taylor’s Expenses –Transportation Fuel –Other Items

5. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Spending Plan The goal is to create a spending plan that 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Housing Monthly Payment –Housing payment –Insurance –Property taxes –Repairs –Maintenance Utilities –Heat –Electricity –Water –Sewer –Garbage

8. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Satellite Dish Digital Cable Telephone Internet Housing Others

9. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Transportation Monthly Payment –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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Others Cellular Phone Motocross Upgrades Electronics Hobbies Entertainment Create Your Own

11. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Snapshot Reflection Review Taylor’s Snapshot on pages 2-4 Answer questions 1-5

14. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck Personal Information State the employee’s name, address, and social security number.

15. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck Pay Period The length of time for which an employee’s wages are calculated.

16. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck Gross Pay The total amount of money earned during the pay period before payroll withholdings.

17. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck Payroll Withholdings The amount of money subtracted from the gross pay for taxes.

18. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck Withholding Tax The amount required by law for employer to withhold from earned wages to pay taxes.

19. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck FICA Federal Insurance Contribution Act – includes Social Security and Medicare

20. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Paycheck Net Pay The amount of money left after all payroll withholding have been taken from the gross pay.

21. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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.

22. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Setting Financial Goals Short Term – less than one year Long Term – more than one year

23. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Jones’ Major Expenditures Major Expenditures Summary Transfer numbers to complete the summary

26. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Taylor’s Spending Plan Payroll Withholdings Review Taylor’s paycheck on page 11 –State Withholding Tax –Federal Withholding Tax –FICA

27. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 31 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 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. 3.19.1.G 1 © Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 32 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Reflection Questions Once the difference equals zero…. –Answer questions 18-22 throughout the simulation –Answer questions 23-27 on page 18