Diving Into
Spending Plans!
1.2.41.G1
Today We’ll Talk About
Spending Plan - What is it? Why use it?
 Income and Expense
 Bean Game

© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Almost half of all American families
spend more money than they make.

Why do you think this happens?


People do not make enough money
People spend too much money
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Values, Needs, & Wants

What is a value? Give an example.


What is a need? Give an example.


A belief about what is important to a person
Something that is a necessity
What is a want? Give an example.

Something that is not a necessity but is desired
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Spending Plan - What is it?

A spending plan is

A tool to help people manage their money
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Spending Plan - Why use it?
Why would you want to know where your money is going?

Spending plans are used to help people



Track where their money is going
Identify income and expenses
Meet financial goals
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
A Spending Plan Tracks…..

Income


Money Earned
Expense

Money Spent
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Game Time!

Income

Expense
As each item is read, stand up and move to
the appropriate game card.
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Income or Expense?
Rent/House payment
Paycheck
Groceries
Internet bill
Winning the lottery
Utilities
Putting money into a piggy
bank
Hobbies
Car repairs
Clothes
Birthday money
MP3 player
Using savings to buy a
skateboard
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Spending Plan Contents

Income

Expenses




Housing
Utilities
Transportation
Savings

Expenses




Food
Insurance
Clothing
Other
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
Lee’s Spending Plan Example
Income
Expenses
Item
Amount
Item
Amount
Mowing a lawn
$10.00
Movie ticket and
popcorn
$15.00
Birthday gift
$15.00
Snack and drink
$5.00
Total
$25.00
Total
$20.00
Does
If
Lee have enough income to pay his expenses?
he would like to buy a new shirt for $15, does he have enough money?
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.2.41.G1
In Conclusion

A spending plan is


A spending plan is based on


A tool to help people track their money
Values, wants, and needs
A spending plan tracks

Income and expenses
© Take Charge Today – Edited April 2007– Diving Into Spending Plans – Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
The End!