Diving Into Spending Plans!

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Diving Into Spending Plans!

• By Ms. Barucky

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Today Well Talk About

• Spending Plan - What is it? Why use it?
• Income and Expense
• Bean Game

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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

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Values, Needs, Wants

• What is a value? Give an example.
• A belief about what is important to a person
• What is a need? Give an example.
• Something that is a necessity
• What is a want? Give an example.
• Something that is not a necessity but is desired

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Spending Plan - What is it?

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

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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

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A Spending Plan Tracks..

• Income
• Money Earned
• Expense
• Money Spent

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Game Time!

• Income

• Expense

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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
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Spending Plan Contents

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

• Expenses
• Food
• Insurance
• Clothing
• Other

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Lees Spending Plan Example
Income Income Expenses 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 Lee have enough income to pay his expenses?
• If he would like to buy a new shirt for 15, does
  he have enough money?

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In Conclusion

• A spending plan is
• A tool to help people track their money
• A spending plan is based on
• Values, wants, and needs
• A spending plan tracks
• Income and expenses

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The End!
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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
• Budget as if you are a senior in high school

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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?