Family Economics & Financial Education
Get ready to Take Charge
of Your Finances
Life Of…..
Taylor B. Jones
“A Teenager’s Spending Plan”
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Snapshot – Taylor B. Jones
• Sneak peak of the life of Taylor and his family
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Taylor
Liz
Ella
Jerome
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
Taylor’s Income and Expenses
• Taylor’s Income
– Cubby’s Restaurant & Grill
• $7.25/hour
• 10 hours a week
• $75.00/ month for tips
– Allowance
• $20.00/month
– Gifts
• $50.00 birthday gift
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Snapshot
Taylor’s Income and Expenses
• Taylor’s Expenses
– Transportation
• Fuel
– Other Items
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Spending Plan
• The goal is to create a spending plan that balances
Taylor’s expenses with his income.
• He can not have more expenses than he has income.
• Spending Plan
– Financial statement
– Tracks income and expenses
– Used to assist with money management and help individuals
reach financial goals
– An individual’s perception of needs, wants and values will affect
decisions made when creating a spending plan
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
Snapshot
Jones Family Expenses
• Taylor’s Activities
– Motocross and chess
• Housing
– Monthly Payment
– Others – television, internet and telephone
• Transportation
– Family vehicle monthly payment and fuel
– Taylor’s vehicle monthly payment
• Insurance
– Homeowner’s, health, life, vehicle
• Food
– Groceries
– Eat out 5-10 times each month
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Housing
• Monthly Payment
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Housing payment
Insurance
Property taxes
Repairs
Maintenance
• Utilities
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Heat
Electricity
Water
Sewer
Garbage
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Housing Others
• Satellite Dish
• Digital Cable
• Telephone
• Internet
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Transportation
• Monthly Payment
– Car payment
– Maintenance
• Fuel
– An average is listed
– This cost may
increase/decrease depending
on the cost of fuel
• Jones Family
– Pay for their vehicle
monthly payment, fuel
costs and Taylor’s
monthly payment
• Taylor
– Pay for his vehicle’s fuel
costs
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Others
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Cellular Phone
Motocross Upgrades
Electronics
Hobbies
Entertainment
Create Your Own
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
Goal:
To Create A Balance Spending Plan
• Make all choices for the Jones family and Taylor
• Complete a Major Expenditures Summary for the
Jones family
• Complete a Spending Plan for Taylor
• Answer reflection questions
• Write a summary essay
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Quick Review
• Jones Family
– Taylor, Liz, Ella, Jerome
• Create a Major Expenditures Summary for the Jones’
– Housing
– Transportation
• Create a Spending Plan for Taylor
– Savings
– Transportation fuel costs
– Others
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Snapshot Reflection
• Review Taylor’s Snapshot on pages 2-4
• Answer questions 1-5
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
Personal
Information
State the employee’s
name, address, and
social security
number.
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
Pay Period
The length of time
for which an
employee’s wages are
calculated.
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
Gross Pay
The total amount of
money earned during
the pay period before
payroll withholdings.
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
The amount of
money subtracted
from the gross pay
for taxes.
Payroll
Withholdings
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
The amount required
by law for employer
to withhold from
earned wages to pay
taxes.
Withholding
Tax
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
Federal Insurance
Contribution Act –
includes Social
Security and
Medicare
FICA
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
Net Pay
The amount of
money left after all
payroll withholding
have been taken from
the gross pay.
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Paycheck
Totals of all 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
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Setting Financial Goals
•Short Term – less than one year
•Long Term – more than one year
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
Jones’ Major Expenditures
Housing
• Choose a house and housing others for the Jones
family
• Refer to the Snapshot on pages 2-4
• Remember
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Family size
Hobbies
Lifestyle
Other family dynamics
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Jones’ Major Expenditures
Transportation
• Choose a vehicle for the Jones family and Taylor
• Refer to the Snapshot on pages 2-4
• Remember
– Family size
– Neighborhood carpool
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
Jones’ Major Expenditures
Major Expenditures Summary
• Transfer numbers to complete the summary
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Spending Plan
Payroll Withholdings
• Review Taylor’s paycheck on page 11
– State Withholding Tax
– Federal Withholding Tax
– FICA
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Spending Plan
Savings
• Review Taylor’s Snapshot on pages 2-4
– Identify his needs, wants, values
• Review the short term and long term goals set for
Taylor on page 12
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Spending Plan
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Transportation
• Taylor will pay for his fuel
• He needs a vehicle to get to and from work
• Refer to page 14 to see which vehicle has been chosen
for Taylor
– If a different vehicle is desired, changes must be made on the
Jones’ Major Expenditures page
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
Taylor’s Spending Plan
Others
• Choose which “others” items Taylor would like
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Cellular Phone
Motocross Upgrades
Electronics
Clothing
• Not an option on pages 8-9
• Write a dollar amount on line FF if desired
– Hobbies
– Entertainment
– Create Your Own
• Draw an item and list the cost in the space provided
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Taylor’s Spending Plan
Summary
• Gross Income
• Expenses
• Calculate the Difference
• If the difference is a negative number, go back and
adjust some of Taylor’s expenses.
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Negative or Positive
Difference?
• If the number on WW is positive, adjust Taylor’s
expenses.
– Saving additional money for unexpected emergencies or events may be a
good idea.
• If the number on WW is negative, go back and make
adjustments to Taylor’s expenses.
– Changes need to be made consistently throughout the simulation.
– Keep in mind Taylor’s needs, wants, values and goals when making
changes.
• If the number on WW is zero, congratulations! You have
balance Taylor’s Spending Plan!
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – 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
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Reflection Questions
• Once the difference equals zero….
– Answer questions 18-22 throughout the simulation
– Answer questions 23-27 on page 18
© Family Economics & Financial Education –Updated April 2010 – Get Ready to Take Charge of Your Finances – Life Of...Taylor – Slide 32
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