Spending Plans Introduction

1
Spending Plans Introduction
Family Economics and Financial Education
2
Spending Plans - What are they?

• A spending plan is
• A tool to help people manage their money

3
Spending Plans - Why use them?

• 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

4
A Spending Plan Tracks..

• Income
• Money earned
• Expense
• Money spent

5
Activity Time!

• Income Expense

6
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 iPod Using savings
7
Spending Plan Categories

• Income
• Expenses
• Housing
• Utilities
• Transportation
• Savings

• Expenses
• Food
• Insurance
• Clothing
• Other

8
Lees Spending Plan Example

• Does Lee have enough income to pay for his
  expenses?
• If he would like to buy a new shirt for 15 does
  he have enough money?

9
Your Turn!

• Spending Plan Shake-Up
• Budget your beans to pay for the things you need
  and want
• Each square is worth one bean and all the squares
  must be filled to have that item

10
Education Levels

• High school drop out 8 beans
• High school graduate 10 beans
• Associates degree 12 beans
• College degree 16 beans
• Graduate degree 20 beans

11
Change in Plans!

• You have a job interview next week in a nearby
  town. Suddenly your needs have changed!
• Adjust your beans accordingly!
• You need a vehicle to drive to work
• Purchasing a new interview outfit is necessary
  and you have found a great suit at a department
  store
• You recently dyed your hair purple and need to
  have it professionally fixed

12
Spending Plan Shake-Up!

• Could you afford everything that you needed?
• Could you afford everything that you wanted?
• How does Spending Plan Shake-Up relate to real
  life?

13
Questions?

• Review the following terms
• Spending Plan
• Income
• Expenses
• Identify sources of
• Income
• Expenses