2

Evelyne PetersonCareer Programs Manager

Career Development & Internships Office

North Park University

Andrea PellegriniAssistant Director, USFSCO

Student Money Management Center

University of Illinois System

In what state and/or

county are you

logging in from today?

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Learning Objectives

• Define & create a spending plan

• Understand resources & income

• Identify methods of tracking expenses

• Recognize how to prioritize spending

• Recognize when to modify your spending plan to better suit your needs

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5

What is your earliest

money memory?

SPENDING PLAN

Picturing Your

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Spending Plan vs Budget

7

budget perspective shift spending plan

Chat Discussion

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What makes a spending plan scary?

What about budgets freaks you out?

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Income

Expenses

• Fixed

• Flexible

• Occasional

Savings Goals

Income & Resources

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Income

Wages

Scholarships

Investments

Child Support/ Alimony

Community Resources

Library

Public Transportation

Food Pantries & Shelters

Gifts

Family

Friends

Etc.

Government Assistance

Healthcare

SNAP

FAFSA

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Tricky Income

Student Loans are

considered a source

of income now, but

keep in mind you will

need to repay them.

go.uillinois.edu/loveyourloan

Set S.M.A.R.T. Goals

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S = Specific

M = Measurable

A = Agreed Upon

R = Realistic

T = Timely

1313

Investments & Home Ownership

Emergency Savings

Insurance – Protection against Risk

Healthy Finances

Good Credit Budget Bills Paid On Time

Need Money Now

Timing of Savings Goals

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Immediate Short-Term Mid-Term Long-Term

Within a Few Weeks Within Next 5 years Within 5 - 10 Years More Than 10 Years

Rent Money Vacation Buy a Car Retirement

YOUR EXPENSES

Understanding

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Expenses

• Rent / Mortgage

• Savings Goals

• Utilities

• Transportation

• Healthcare

• Dependent care

• Groceries / Food

• Cable / Netflix / Hulu

• Personal items

• Entertainment

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Expense Tracking Tools

goodbudget.com goo.gl/kHhL92 check register

Envelope

BudgetingSpreadsheets Paper & Pencil

App Example Making it on a College Budget Old School Example

There’s an App for That

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Link your financial accounts.

Set budgets. Get alerts.

Check with your financial institutions.

Mint LearnvestExamples:

Polling Question

Is pizza a need or a want?

IT DEPENDS!

There are healthier, cheaper things toeat than pizza so it is oftenconsidered a want.

But let’s say you’re a diabetic and it’syour only option and your sugar isdropping… the pizza has now turnedinto a need.

Needs > Wants

A need is something that if you went without

it, it could jeopardize your health, safety or

livelihood.

Define the Expense

Expenses that are consistent, often associated with a contract

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Fixed

FlexibleExpenses that vary over time, helpful to know when cutting spending

OccasionalExpenses that show up irregularly over time; may be bi-monthly, quarterly, etc.

Rent or Mortgage

Fixed? Flexible? Occasional?

Groceries

Fixed? Flexible? Occasional?

Water

Fixed? Flexible? Occasional?

Pet Care

Fixed? Flexible? Occasional?

Music Subscription

Fixed? Flexible? Occasional?

Spending Secrets

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Many surveys have shown that

people hide purchases or how

much they spend from those

they love.

Source: http://www.businessinsider.com/love-and-money-what-statistics-say-2012-2

Money Personalities

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Hoarder SpenderAmasser Avoider Monk

Chat Discussion

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What is your biggest spending secret?

Have you ever had buyer’s remorse?

SPENDING PLAN

Creating Your

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Spending Plan Puzzle

Identify priorities

Recognize resources

Set S.M.A.R.T.

goals

Track progress

Analyze & re-prioritize

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Evaluate and Brainstorm

• Identify

– Income & Resources

– Fixed, Flexible & Occasional Expenses

• Compare Income & Expenses

• Set S.M.A.R.T. Goals

• Prioritize Spending

• Make Changes as Needed

• Income– Job

– Fellowship Stipend

– Parental / Guardian Support

• Expenses– Savings Goals – Emergency Fund

– Rent

– Utilities

– Cable / Netflix / Hulu

– Transportation (Car, Bus, Uber)

– Food (Groceries & Eating Out)

– Entertainment (Hobbies, Events, Etc.)

– Healthcare / Hygiene / Personal Items

– Clothing

– Etc.

Tools to Use

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Notebooks

Excel Sheets

Apps & Software

Chat Discussion

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Are there ways to save money by spending less?

Can you think of ways to diversify your income?

Ways to cut spending:

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small purchases? cash or credit? Time to earn?

Red Flags to Watch For

• Your spending plan results in a negative number

• Forgetting to include categories in your spending plan

• Underestimating costs or overestimating income & resources

• Variations in spending & income from life transitions

• Too much money accumulating in “other” category.

Re-Prioritizing A Spending Plan

Goals change based on

your life situation &

circumstances

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Identify priorities

Recognize resources

Set S.M.A.R.T.

goals

Track progress

Analyze & re-prioritize

Reminders

• Spend less than you earn

• Prioritize saving to accomplish goals

• Student loans turn into debt later

• Change your plan to match your needs

• Track your spending how you choose

Financial Literacy Badges Program

Take a step towards the

Spending Badge.

Spooked by Spending Plans? Quiz:

go.uillinois.edu/spookyspendingq

uiz

More information about the Financial Literacy Badges Program can be found here:

GO.UILLINOIS.EDU/FLBADGES

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Wednesday

November 7

12:00 PM CST

Stay in Contact with Us!