Family Economics

1
Family Economics Financial Education
3.19.5.G1
Get ready to Take Charge of Your Finances
Life Of..
Carlos Chavez
A Teenagers Spending Plan
2
Snapshot Carlos Chavez

• Sneak peak into the life of Carlos and his family
• Carlos
• Nana (Martha)
• Jorge
• María
• Adriana
• Marco

3
SnapshotCarlos' Income and Expenses

• Carlos' Income
• Sunshine Inn
• 8.50/hour
• 10 hours a week

4
SnapshotCarlos' Income and Expenses

• Carlos' Expenses
• Extracurricular Activities
• Youth group ski trip
• 5.00 per month
• Track expenses
• 2.50 per month
• Transportation
• 100.00

• Saving
• Family Support
• 40.00 per month
• College expenses
• 50.00 per month
• Lunch
• 24.00per month
• Others

5
Spending Plan

• The goal is to create a spending plan that
  balances Carlos' expenses with his income.
• He cannot have more expenses than income.
• Spending Plan
• Financial statement
• Tracks income and expenses
• Used to assist with money management and help the
  family reach financial goals
• An familys perception of needs, wants and values
  will affect decisions made when creating a
  spending plan

6
SnapshotChavez Family Expenses

• Carlos' Expenses
• Housing
• Monthly Payment
• Utilities
• Others television, internet and telephone
• Transportation
• Vehicle for María
• Monthly payment and fuel
• Bus pass for Jorge
• Insurance
• Homeowners, disability, life, auto, and health

• Food
• Groceries
• School lunches
• Savings and Debt
• Savings of 125 per month for retirement and
  future college expenses
• Monthly medical payments of 155.00

7
Housing

• Monthly Payment
• Housing payment
• Insurance
• Property taxes
• Repairs
• Maintenance

• Utilities
• Heat
• Electricity
• Water
• Sewer
• Garbage

8
Housing Others

• Digital Cable
• Add Ons
• Telephone
• Cellular Phone
• Internet

9
Transportation

• Monthly Payment
• Car payment
• Maintenance
• Fuel
• An average is listed
• This cost may increase/decrease depending on the
  cost of fuel

• Chavez Family
• Pay for María's monthly payment and fuel costs
• Bus Pass

10
Others

• Running Supplies
• Downhill Ski Supplies
• Electronics
• Video Games
• Entertainment
• Cellular Phone
• Create Your Own

11
GoalTo Create A Balance Spending Plan

• Make all choices for the Chavez family and Carlos
• Complete a Major Expenditures Summary for the
  Chavez family
• Complete a Spending Plan for Carlos
• Answer reflection questions
• Write a summary essay

12
Quick Review

• Chavez Family
• Carlos, Nana (Martha), Jorge, María, Adriana,
  Marco
• Create a Major Expenditures Summary for the
  Chavez Family
• Housing
• Transportation
• Create a Spending Plan for Carlos
• Extracurricular Activities
• School Lunches
• Savings
• Others

13
Snapshot Reflection

• Review Carlos' Snapshot on pages 2-4
• Answer questions 1-5 on page 10

14
Carlos' Paycheck
State the employees name, address, and social
security number.
15
Carlos' Paycheck
The length of time which an employees wages are
calculated.
16
Carlos' Paycheck
The total amount of money earned during the pay
period before payroll withholdings.
17
Carlos' Paycheck
The amount of money subtracted from the gross pay
for taxes.
18
Carlos' Paycheck
The amount required by law for employer to
withhold from earned wages to pay taxes.
19
Carlos' Paycheck
Federal Insurance Contribution Act includes
Social Security and Medicare
20
Carlos' Paycheck
The amount of money remaining after all payroll
withholdings have been removed from gross pay.
21
Carlos' Paycheck
Totals of the deductions which have been withheld
from an individuals paycheck from January 1 to
the last day of the pay period indicated on the
paycheck stub.
22
Setting Education and Financial Goals

• Short Term less than one year
• Long Term more than one year

23
Chavezs Major ExpendituresHousing

• Choose a house and housing others for the
  Chavez family
• Refer to the Snapshot on pages 2-4
• Remember
• Family size
• Lifestyle
• Other family dynamics

24
Chavezs Major ExpendituresTransportation

• Choose a vehicle for María
• Refer to the Snapshot on pages 2-4
• Remember
• They need enough room in the vehicle for the
  family and supplies when they take trips together

25
Chavezs Major ExpendituresMajor Expenditures
Summary

• Transfer numbers to complete the summary
• Total housing cost
• Total transportation cost
• Insurance
• Food
• Savings and Debit
• Each month 125.00 is saved for retirement and
  future college expenses
• Each month 155.00 is paid to help a medical debt
  of 11,000

26
Carlos' Spending PlanPayroll Withholdings

• Review Carlos' paycheck on page 11
• State Withholding Tax
• Federal Withholding Tax
• FICA

27
Carlos' Spending PlanSavings

• Review Carlos' Snapshot on pages 2-4
• Identify his needs, wants, values
• Review the short term and long term goals set for
  Carlos on page 12

28
Carlos' Spending PlanOthers

• Extracurricular Activities
• School Lunches
• Choose which others items Carlos would like
• Running Supplies
• Downhill Ski Supplies
• Electronics
• Video Games
• Entertainment
• Create Your Own
• Draw an item and identify the cost in the space
  provided

29
Carlos' Spending Plan Summary

• Gross Income
• Expenses
• Calculate the Difference
• If the difference is a negative number, go back
  and adjust some of Carlos' expenses.

30
Negative or Positive Difference?

• If the number on XX is positive, adjust Carlos'
  expenses.
• Saving additional money for unexpected
  emergencies or expenses may be a good idea.
• If the number on XX is negative, go back and make
  adjustments to Carlos' expenses.
• Changes need to be made consistently throughout
  the simulation.
• Keep in mind Carlos' needs, wants, values and
  goals when making changes.
• If the number on XX is zero, congratulations!
  You have balanced Carlos' Spending Plan!

31
Reflection Questions

• Once the difference equals zero.
• Answer questions 17-22 on pages 15 and 16
• Answer questions 23-27 on page 18