The Game of MoneyA young person’s guide to money management.

Day 5

Budget and SaveBudgeting is making choices that match your spending goals with your income. In real life, your first step to making a budget will be to track all your expenses – every dollar you spend. When you track your money, you might be shocked at how much you spend on things such as DVDs and soft drinks.

• Saving is holding on to some of your money so you can use it in the future. How much will you save? The more you set aside – and the sooner you start doing it – the more you’ll have to enjoy when you retire. Many experts recommend saving at least 10% of your income.

• #109-111 - On your Finance Sheet – Refer back to #29 for your salary and if you are married, #41 or #42 for your wife’s/husband’s salary. Figure the answers for #109 and #110 then write your total savings in the chart for #111.

Life HappensLet’s see what happens when unexpected expenses – or income- come your way. These are life’s ups and Downs. For this exercise, you’ll have three unexpected expenses that happen to you.

1. Using the Ups and Downs Sheet, roll one di twice to get a two-digit number.

2. Your lowest number will be 11 and your highest will be 66.

3. Find that number on your Ups and Downs Sheet and the corresponding circumstance.

4. Take turns with your partner until both of you have rolled three times.

5. #112 - 115 - On your Finance Sheet – Document your unexpected events as you roll the dice for #112-114 then add them all together and write the total in #115.

Give and TakeSee the World. You deserve a vacation this year – if you can afford it, that is. Choose from one of the following vacation packages and then set aside money each month to pay for it. The prices include travel and food; take half off if you’re single. Many people plan ahead and save a little each month for a vacation.

VacationTwo-week Mediterranean Cruise $9,000.00One week in Europe $3,480.00One week in Hawaii $2,880.00One week at Disney World $1,980.00One week in San Francisco $1,320.00One week at the beach (driving) $960.00One week at a state park (driving) $720.00One week camping (driving) $240.00One week at your in-law’s house $60.00

#116 - 117 - On your Finance Sheet – Write the amount of your vacation on your packet for #116. Divide this amount that you will spend on your vacation by 12 to determine how much you will set aside each month and write this in box #117.

Helping Others• Most Americans donate to charities. The

average family gives about 2% of its income. You can give more if you would like.

• #118 - 121 - On your Finance Sheet Refer back to #37 or #38 to find your income and your wife’s/husband’s income. Write these on #118 and #119 of your Finance Sheet. Add your income to your wife’s/husband’s income and write the total in #120. Multiply the amount in #120 by .02 to get the total donation and write this in 121

Out to Lunch• If you want to eat out –

and who doesn’t – it’ll cost you. Use this chart to get your family’s cost of eating out, then decide how many times you’ll eat out each month.

Determine the situation you are in on the chart below.

RESTAURANT FAST FOOD NICER

Single $5.00 $15.00You & Wife/husband or date

$10.00 $30.00

Married with family $10.00 + $3.00 per child

$30.00 + $6.00 per child

#122 - 124 - On your Finance Sheet - On #122 write the number of times you will eat at a fast food restaurant through the month and the cost from the chart above then figure the total for the month. On #123 write the number of times you will eat at a nicer restaurant then figure the total. On #124 add both totals together.

Education and TrainingCollege was great, wasn’t it? Well, you’re still paying for it. Not everyone borrows money to pay for higher education, but let’s say you did. Look back to #28 to remind yourself what type of diploma or degree you needed for your career.

The table below shows typical monthly payments for student loans.STUDENT LOAN – Typical Monthly PaymentsAssociate Degree $50.00Vocational Degree $54.00Bachelor’s Degree $184.00Master’s Degree $220.00College Professor $280.00Professional Degree (except for professor) $530.00Medical Degree $840.00

#125 On your Finance Sheet - From the chart above, determine the student loan cost for the type of education or training you would need for your career. Write this amount in #125 on your sheet.

Savings Simulator CalculatorOn your Finance Sheet - Go to your teacher’s

website and click on the Savings Simulator Calculator. Use the information on each line in the chart to determine what your savings would be. Fill out the “Total Amount at end of Term” for each line.

Save your sheet to the folder designated by your teacher