family economics & financial education 3.19.5.g 1 get ready to take charge of your finances life...
TRANSCRIPT
Family Economics & Financial Education 3.19.5.G1
Get ready to Take Charge of Your Finances
Life Of…..
Carlos Chavez“A Teenager’s Spending Plan”
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
Snapshot – Carlos Chavez
• Sneak peak into the life of Carlos and his family– Carlos– Nana (Martha)– Jorge– María – Adriana – Marco
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
SnapshotCarlos' Income and Expenses
• Carlos' Income– Sunshine Inn
•$8.50/hour•10 hours a week
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
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
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
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 family’s perception of needs, wants and values will
affect decisions made when creating a spending plan
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
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
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
Housing
• Monthly Payment– Housing
payment– Insurance– Property taxes– Repairs– Maintenance
• Utilities– Heat– Electricity– Water– Sewer– Garbage
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
• Digital Cable
• Add Ons
• Telephone
• Cellular Phone
• Internet
Housing Others
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
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
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
Others
• Running Supplies• Downhill Ski Supplies• Electronics• Video Games• Entertainment• Cellular Phone • Create Your Own
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – 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
Goal:To 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
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 12 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
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
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 13 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
Snapshot Reflection
• Review Carlos' Snapshot on pages 2-4• Answer questions 1-5 on page 10
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 14 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
Carlos' Paycheck
Personal Information
State the employee’s name, address, and social security number.
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 15 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
Carlos' Paycheck
Pay Period
The length of time which an employee’s wages are calculated.
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 16 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
Carlos' Paycheck
The total amount of money earned during the pay period before payroll withholdings.
Gross Pay
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 17 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
Carlos' Paycheck
The amount of money subtracted from the gross pay for taxes.Payroll Withholdings
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 18 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
Carlos' Paycheck
The amount required by law for employer to withhold from earned wages to pay taxes.Withholding Tax
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 19 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
Carlos' Paycheck
Federal Insurance Contribution Act – includes Social Security and MedicareFICA
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 20 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
Carlos' Paycheck
Net Pay
The amount of money remaining after all payroll withholdings have been removed from gross pay.
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 21 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
Carlos' Paycheck
Totals of the deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period indicated on the paycheck stub.
Year-to-Date
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 22 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
Setting Education and Financial Goals
•Short Term – less than one year
•Long Term – more than one year
SMART Goal
SpecificState exactly what is to be
done.
MeasurableInclude how the goal can
be measured.
AttainableDetermine
steps to reach the goal.
RealisticDo not set the
goal for something unrealistic.
Time BoundState when the
goal will be met.
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 23 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
Chavez’s 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
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 24 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
Chavez’s 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
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 25 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
Chavez’s 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
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 26 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
Carlos' Spending PlanPayroll Withholdings
• Review Carlos' paycheck on page 11– State Withholding Tax– Federal Withholding Tax– FICA
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 27 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
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
3.19.5.G1
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 28 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
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
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 29 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
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.
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 30 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
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!
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© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Carlos – Slide 31 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
Reflection Questions
• Once the difference equals zero….– Answer questions 17-22 on pages 15 and
16– Answer questions 23-27 on page 18