2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and

2.2.5.G1

© Take Charge Today – August 2013– Spending Plans – Slide 1Funded 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

Daily Information 4/9

Objectives:

1.Prepare a meal plan and determine if you were able to stay within budget.

2.Explain the importance of budgeting.

Warm Up:1)Make sure work turned in last class has been updated in infinite campus!2)Record all expenditures in the month of April on the “New” student budget.

Agenda:

1.Warm Up2.Grocery budget3.Ch4 Study Guide4.Bottom Line

2.2.5.G1



Objectives:

Prepare a meal plan and

determine if you were able to stay within

budget.

Warm Up:1)Check your grade in infinite campus to make sure work submitted yesterday has been updated.

Agenda:

1.Warm Up2.Grocery budget3.Resume4.Bottom Line

2.2.5.G1



Objectives:• Implement the

process of creating a spending plan.

•Discover ways to save money when purchasing groceries.

Warm Up:• How much money do you want to have by the time you are 30?

• What will you use it for?

Agenda:

1.Warm Up2.Scenario P.P.3.Scenario activities4.Grocery budget activity 5.Paycheck project6.Bottom Line

2.2.5.G1



Objectives:•Discover ways to

save money when purchasing groceries.

Warm Up:• Who is one of your “money role models” and why?

Agenda:

1.Warm Up2.Financial Literacy Fact Friday!!3.Grocery budget activity

2.2.5.G1





Warm Up:• Check your grade in infinite campus. If you have concerns regarding your grade, please write them down in your warm-up book.

Agenda:

1.Warm Up2.Grocery budget activity3.BottomLine

2.2.5.G1





Warm Up:• Check your grade in infinite campus. If you have concerns regarding your grade, please write them down in your warm-up book.

Agenda:

1.Warm Up2.The Carson Family3.Grocery budget activity4.Bottom Line

2.2.5.G1

© Take Charge Today – August 2013 – Spending Plans – Slide 7Funded 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

The Carson Family•Goals▫Pay the rest of tuition, no more student loan ($200)▫Enroll in life insurance ($75) ▫Pay off credit card ($___)

•Changes ▫Dining out: $40 ▫Cell Phone: $50 ▫Cigarettes: $0 ▫Credit Card: (More than $30)

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The Carson Family•Calculate your total

•Income = expenses

•What you will do with the remaining balance?▫How much towards the credit card▫How much towards their savings

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Congratulations! You have been hired as a financial

advisor for John and Tia Brown

• Developed a Statement of Financial Position and Income and Expense Statement

• Identified the following goals:

• Develop a spending plan for the Brown family

Increase the amount of their

emergency savings fund

Spend less money on

clothing every month

Pay more on their monthly car loan payment to pay

the loan off faster

Spend less money dining out

at restaurants

2.2.5.G1


The Brown FamilyTracked Income and Expenses for January

Kept all receipts for the month of January to create an Income and Expense Statement

Review John and Tia’s January Income and Expense Statement for a realistic view of their income and expenses

2.2.5.G1


Personalize Your Spending PlanStep 1 - Track

Current Income and Expense

Step 2 - Personalize Your

Spending PlanStep 3 - Allocate

Money to Each Category

Step 4 - Implement and

Control

Step 5 - Evaluate and Make

Adjustments

How will you

develop a spending

plan?

2.2.5.G1


The Brown FamilyPersonalize The Spending Plan

• Requested a spending plan for the month of February

• Requested the same document and categories as the Income and Expense Statement

• Find the column on the Income and Expense Statement where the Spending plan will be created

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The Brown FamilyAllocate Money to Each Category

• Indicated a * next to expenses that are either contractual or they are unwilling to decrease

• Remember goals• Consider trade-offs• Must have a net gain or a zero

balance

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The Brown FamilyAllocate Money to Each Category

• Develop a spending plan for the family

• Explain each change made

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Net Gain or Net Loss?

Net Gain? Net Loss?• Add more

money to savings or another expense

• Increase income

• Decrease expenses

• Both

2.2.5.G1


The Brown FamilyEvaluate and Make Adjustments

How could creating a

spending plan help you now

and in the future?

• John and Tia realized that if they dine out at restaurants less often they will need to increase their monthly grocery expense

• Increase their grocery budget by $20.00

• How has developing a spending plan helped the Brown family?

2.2.5.G1


The Brown Family•You may begin the scenario within your group

•When you are finished, start working on the second scenario for the Carson family.

Documents

2.2.5.G1 © Take Charge Today – August 2013– Spending Plans – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and