Income and Expense Statement Presentation

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<p>Income and Expense Statement</p> <p>Income and Expense StatementTake Charge of Your Finances </p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Meet EvanPaid once per monthPuts enough money in his checking account to cover his expenses for the monthHe runs out of money each month before all of his expenses are paid</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Evan created a list of all of his expenses First allocates money to his savings accountEstimates that his remaining expenses will be no more than $1000/month:But he runs out of money before the end of each monthHow does Evan think he is spending his money?</p> <p>ExpenseAmountRent and Utilities$500Health insurance$100Renters Insurance$10Car insurance$40Gas$100Groceries$100Cell phone$70Personal care$30Entertainment$50Total$1000</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Evan wasnt accounting for $62.00 per month! Are you sure there isnt anything else you spend your money on, Evan?Well I do purchase a cup of drip coffee almost every morning but that is only $1.00! And I usually eat lunch at a restaurant about once per week but I didnt think that added up to much money.$1.00/day$30/ month$365/yearLunch at $8.00/week$32/month$416/year</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>The Costs Add UpHow much do you think each item would cost if purchased every day for one month?16 oz. soda$1.00 - $2.00$30.00 - $60.00$365.00 - $730.0016 oz. energy or sports drink$2.00 - $3.00$60.00 - $90.00$730.00 - $1095.00Candy bar$0.75 - $1.25$22.50 $37.50$273.75 - $456.2516 oz. Latte or flavored coffee$2.50 -$3.50$75.00 - $105.00$912.50 $1277.50</p> <p>ItemAverage Cost of ItemApproximate Cost Per Month if purchased every dayApproximate Cost Per Year if purchased every day</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Wow, small expenses do add up fast. So, how do I better determine what I have spent my money on?How would you answer Evans question?</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Income and Expense Statement - lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year</p> <p>The Income and Expense Statement</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Money Management ToolsWhat is my financial position today?What is my future money management plan?How have I managed my money in the past?Tells you where your money came from and where it went</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>How can an Income and Expense Statement help you manage money?Make changes to increase net worthMake changes to reach goalsImprove financial well-being</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Three ComponentsIncomeExpensesNet gain or net loss</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Learning about income and expensesBecome aware of all categories available for income and expensesCreate an all-inclusive statementCustomize the statement for yourself</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What is Income?</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Income CategoriesWhat income category is represented on your card? Unearned income income received from sources other than employmentReceived Income from Government Programs offer a form of income, usually temporaryEarned income any money earned from working for pay</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Earned IncomeWages or salary before deductionsCommissions/tips/bonusesTax refunds</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Gross Income vs. Net IncomeRecorded in the income section of the statementThis is his gross incomeEvans paycheck is worth $1277.60This is his net incomeEvan earns $1600.00 before taxesNet Income</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Unearned IncomeInterest earned during time periodMoney earned from investment during time periodSales of assetsMoney from savings and investments to help pay expenses during time period</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Unearned IncomeScholarships/grants from non-government sourcesMoney from othersChild support</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Received Income from Government ProgramsPlace a checkmark next to income that you haveGovernment programs such as workers compensationScholarships/grants from government sources</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What are Expenses?</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>TaxesSaving and InvestingInsuranceHousingTransportationFoodOtherExpense CategoriesExpenses will vary for every person</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Taxes Includes income and payroll taxNumbers may be found on the paycheck stubProperty taxes such as housing and transportationSales and excise taxes are included within the cost of other expensesTaxes included in other expense categories</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Savings - the portion of current income not spent on consumptionRetirement investments may be deducted directly from a paycheckSaving and InvestingSaving and Investing</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Why can savings and investments be both an income and expense?Taking money from savings or investments to pay for expensesAdding money to savings or investments for future use</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>InsuranceHealthProperty and liability (home, automobile)LifeDisability </p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Four on the FloorIf you receive a paper, add at least one expense to any of the categories that wasnt already recorded</p> <p>What expenses may be included in the housing category?What expenses may be included in the transportation category?</p> <p>What expenses may be included in the food category?What expenses may be included in the other category?</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the housing category?Housing payment (rent or mortgage)UtilitiesProperty taxesMaintenanceHousehold furnishingsHome/renters insurance (included in insurance)</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the transportation category?Loan paymentFuelLicense and registrationRepairs and maintenanceInsurance (included in insurance category)</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the food category?GroceriesMeals eaten at restaurants Snacks away from homeKitchen supplies</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the other category?Child careAllowancesCare for other dependentsCell phoneInternet serviceCable/satellite televisionCommunication and computers</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the other category?Medical careDental careMedicationsShampooToothpasteHaircutsClothing and personal care</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the other category?TuitionPrivate lessons/tutoringSuppliesFoodVeterinary costsBoardingPet careEducational expenses</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>What expenses were recorded in the other category?Gifts and charitable contributionsEntertainmentCredit costsMoviesCredit cardsMusicStudent loans</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>Make the Income and Expense Statement your own!Place a checkmark next to expenses that you haveCustomize the categories to represent all income and expenses you haveSpecific categories may be more effective</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *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</p> <p>I now understand how an Income and Expense Statement can help me determine where I spend my money, but how do I track my income and expenses to make the statement?How would you answer Evans question?</p> <p>1.15.5.G1 Family Economics &amp; Financial Education May 2012 Income and Expense Statement Slide *Funded by a grant from Take Charge America, Inc. to the Norton School of Fam...</p>