Income and Expense Statement Advanced Level. 2.2.4.G1 © Take Charge Today – August 2013 – Income and Expense Statement – Slide 2 Funded by a grant from

  • View
    213

  • Download
    1

Embed Size (px)

Text of Income and Expense Statement Advanced Level. 2.2.4.G1 © Take Charge Today – August 2013 –...

  • Income and Expense StatementAdvanced Level

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    The Costs Add UpHow much do you think each item would cost if purchased every day for one month?16 oz. soda$1.00 - $2.00$30.00 - $60.00$365.00 - $730.0016 oz. energy or sports drink$2.00 - $3.00$60.00 - $90.00$730.00 - $1095.00Candy bar$0.75 - $1.25$22.50 $37.50$273.75 - $456.2516 oz. Latte or flavored coffee$3.50 -$5.50$105.00 - $165.00$1277.50 $2007.50

    ItemAverage Cost of ItemApproximate Cost Per Month if purchased every dayApproximate Cost Per Year if purchased every day

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Income and Expense Statement - lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year

    The Income and Expense Statement

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Money Management ToolsWhat is my financial position today?What is my future money management plan?How have I managed my money in the past?Tells you where your money came from and where it went

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    How can an Income and Expense Statement help you manage money?Make changes to increase net worthMake changes to reach goalsImprove financial well-being

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Three ComponentsIncomeExpensesNet gain or net loss

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    What is Income?

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Income CategoriesWhat income category is represented on your card? Unearned income income received from sources other than employmentReceived Income from Government Programs offer a form of income, usually temporaryEarned income any money earned from work

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Earned IncomeWages or salary before deductionsCommissions/tips/bonusesTax refunds

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Gross Income vs. Net IncomeRecorded in the income section of the statementThis is his gross incomeEvans paycheck is worth $1277.60This is his net incomeEvan earns $1600.00 before taxesNet Income

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Unearned IncomeInterest earned during time periodMoney earned from investment during time periodSales of assetsMoney from savings and investments to help pay expenses during time periodUsing savings and asset sales are not sources of income you can rely upon in the next time period!

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Unearned IncomeScholarships/grants from non-government sourcesMoney from othersChild support

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Received Income from Government ProgramsPlace a checkmark next to income that you haveGovernment programs such as workers compensationScholarships/grants from government sources

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    What are Expenses?

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    TaxesSaving and InvestingInsuranceHousingTransportationFoodOtherExpense CategoriesExpenses will vary for every person

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Taxes Includes income and payroll taxNumbers may be found on the paycheck stubProperty taxes such as housing and transportationSales and excise taxes are included within the cost of other expensesTaxes included in other expense categories

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Includes any portion of income that is saved or invested for future useRetirement investments may be deducted directly from a paycheckSaving and InvestingSaving and Investing

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Why can savings and investments be both an income and expense?Using money from savings or investments to pay for expenses during the time periodAdding money to savings or investments for future use

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    InsuranceHealthProperty and liability (home, automobile)LifeDisability

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    Four on the FloorIf you receive a paper, add at least one expense to any of the categories that wasnt already recorded

    What expenses may be included in the housing category?What expenses may be included in the transportation category?

    What expenses may be included in the food category?What expenses may be included in the other category?

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    What expenses were recorded in the housing category?Housing payment (rent or mortgage)UtilitiesProperty taxesMaintenanceHousehold furnishingsHome/renters insurance (included in insurance)

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    What expenses were recorded in the transportation category?Loan paymentFuelLicense and registrationRepairs and maintenanceInsurance (included in insurance category)

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    What expenses were recorded in the food category?GroceriesMeals eaten at restaurants Snacks away from homeKitchen supplies

    2.2.4.G1 Take Charge Today August 2013 Income and Expense Statement 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 Arizona

    What expenses were recorded in the other category?Child careAllowancesCare for other dependentsCell phoneInternet serviceCable/satellite televisionCommunication and computersMedical careDental careMedicationsShampooToothpasteHaircutsClothing and personal care

    2.2.4.G1 Take Charge Today August 2013 Inco