2.2.3.G1
STATEMENT OF FINANCIAL
POSITION AND INCOME
AND EXPENSE STATEMENT
ADVANCED LEVEL
© Take Charge Today –August 2013– Statement of Financial Position – Slide 1
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
2.2.3.G1
THE COSTS ADD UP
How much do you think each item would cost if
purchased every day for one month?
Item
Approximate Cost Approximate Cost
Average Cost
Per Month if
Per Year if
of Item
purchased every purchased every
day
day
$1.00 - $2.00
$30.00 - $60.00
16 oz. energy or
$2.00 - $3.00
sports drink
$60.00 - $90.00
16 oz. soda
Candy bar
$0.75 - $1.25
$22.50 – $37.50
16 oz. Latte’ or
flavored coffee
$2.50 -$3.50
$75.00 - $105.00
$365.00 $730.00
$730.00 $1095.00
$273.75 $456.25
$912.50 –
$1277.50
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
THE INCOME AND
EXPENSE STATEMENT
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
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
THREE COMPONENTS
Income
Expenses
Net gain or
net loss
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
WHAT IS INCOME?
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
INCOME CATEGORIES
Earned income – any money
earned from work
Unearned income – income
received from sources other than
employment
Received Income from
Government Programs – offer a
form of income, usually temporary
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
WHAT ARE
EXPENSES?
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
EXPENSE CATEGORIES
• Taxes
• Saving and Investing
• Insurance
• Housing
• Transportation
• Expenses
Food will vary for every
• Other
person
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
EXPENSE CATEGORIES
• Variable Expenses are those that
change each time period
• Fixed Expenses are expenses that
remain the same each time period
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
NET GAIN OR NET
LOSS
Net
loss
© Take Charge Today –August 2013– Statement of Financial Position – 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
2.2.3.G1
FIND A TRACKING METHOD THAT WORKS
FOR YOU
Record in writing
Smartphone
Depository
institution
account
statements
Keep receipts
Money
management
computer
software program
A written system is more effective than a mental
system – like Evan you can trick yourself into
thinking you spend less than you do!
© Take Charge Today –August 2013– Statement of Financial Position – 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