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

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Creating MySpending Plan

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1

Step 1Track Current Income and Expenses


Step 2Personalize Your Spending Plan

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Personalize Your Spending PlanStep 1 - Track Current Income and Expense Step 2 - Personalize Your Spending PlanStep 3 - Allocate Money to Each CategoryStep 4 - Implement and ControlStep 5 - Evaluate and Make AdjustmentsHow will you develop a spending plan?What is the intended time period for your spending plan?What categories will your spending plan include?

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1How will you develop a spending plan?

Paper and pencil SpreadsheetMoney management computer softwareApplications


Step 3Allocate Money to each Category

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1What is the intended time period for your spending plan?What categories will your spending plan include?Usually concurrent with pay periodReference tracking from the Income and Expense Statement Do any categories need added, changed, or removed?

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Allocate Money to Each CategoryReference tracking from Step OneDetermine what changes to makeStep 1 - Track Current Income and Expense Step 2 - Personalize Your Spending PlanStep 3 - Allocate Money to Each CategoryStep 4 - Implement and ControlStep 5 - Evaluate and Make Adjustments

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1When allocating money consider:ContractualNon-contractualTrade-offs and opportunity costsGoalsContractual expensesRequired to pay expense for a specific amount of time - not easy to reduce or eliminate Easy to reduce or eliminateRent, Internet, Cell phoneFood, entertainment

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Spending Plan GuideWhat variables may cause these percentages to be different?

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Net Gain or Net Loss?

Net Gain?Net Loss?Add more money to savings or another expenseIncrease incomeDecrease expensesBoth


Step 4Implement & Control

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Implement and ControlStep 1 - Track Current Income and Expense Step 2 - Personalize Your Spending PlanStep 3 - Allocate Money to Each CategoryStep 4 - Implement and ControlStep 5 - Evaluate and Make AdjustmentsUse a control system to stay on track

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Control SystemsInternet-based spending plan programDepository institution programsCheck register systemEnvelope system


Step 5Evaluate and Make Adjustments

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1Evaluate and Make AdjustmentsStep 1 - Track Current Income and Expense Step 2 - Personalize Your Spending PlanStep 3 - Allocate Money to Each CategoryStep 4 - Implement and ControlStep 5 - Evaluate and Make AdjustmentsIs your spending plan helping you reach goals?Do you need to make any adjustments?

Take Charge Today August 2013 Spending Plans Slide #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 Arizona2.2.5.G1SummaryA spending plan is an important financial planning toolHelps achieve goalsMake your spending plan work for youMake sure to control, evaluate, and adjust your spending plan

Step 1 - Track Current Income and Expense Step 2 - Personalize Your Spending PlanStep 3 - Allocate Money to Each CategoryStep 4 - Implement and ControlStep 5 - Evaluate and Make Adjustments


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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