Take Charge Today 1.0.1.G1

Introductory Level

Life Of…..

Taylor B. Jones“A Teenager’s Spending Plan”

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© Take Charge Today – Updated April 2010 – 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 B. Jones

• Sneak peak of the life of Taylor and his family– Taylor– Liz– Ella– Jerome

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© Take Charge Today – Updated April 2010 – 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

SnapshotTaylor’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

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© Take Charge Today – Updated April 2010 – 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

SnapshotTaylor’s Income and Expenses

• Taylor’s Expenses– Transportation

• Fuel

– Other Items

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© Take Charge Today – Updated April 2010 – 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

Spending Plan

• The goal is to create a spending plan the 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

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© Take Charge Today – Updated April 2010 – 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

SnapshotJones 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

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© Take Charge Today – Updated April 2010 – 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

Housing

• Monthly Payment– Housing

payment– Insurance– Property taxes– Repairs– Maintenance

• Utilities– Heat– Electricity– Water– Sewer– Garbage

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© Take Charge Today – Updated April 2010 – 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

• Satellite Dish

• Digital Cable

• Telephone

• Internet

Housing Others

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© Take Charge Today – Updated April 2010 – 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

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

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© Take Charge Today – Updated April 2010 – 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

Others

• Cellular Phone• Motocross Upgrades• Electronics• Hobbies• Entertainment• Create Your Own

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© Take Charge Today – Updated April 2010 – 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

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

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© Take Charge Today – Updated April 2010 – 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

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

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© Take Charge Today – Updated April 2010 – 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

Snapshot Reflection

• Review Taylor’s Snapshot on pages 2-4• Answer questions 1-5

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Personal Information

State the employee’s name, address, and social security number.

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Pay Period

The length of time for which an employee’s wages are calculated.

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Gross Pay

The total amount of money earned during the pay period before payroll withholdings.

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Payroll Withholdings

The amount of money subtracted from the gross pay for taxes.

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Withholding Tax

The amount required by law for employer to withhold from earned wages to pay taxes.

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

FICA

Federal Insurance Contribution Act – includes Social Security and Medicare

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Net Pay

The amount of money left after all payroll withholding have been taken from the gross pay.

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Paycheck

Year-to-Date

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.

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© Take Charge Today – Updated April 2010 – 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

Setting Financial Goals

•Short Term – less than one year

•Long Term – more than one year

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© Take Charge Today – Updated April 2010 – 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

Jones’ Major ExpendituresHousing

• Choose a house and housing others for the Jones family

• Refer to the Snapshot on pages 2-4• Remember

– Family size– Hobbies– Lifestyle– Other family dynamics

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© Take Charge Today – Updated April 2010 – 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 ExpendituresTransportation

• Choose a vehicle for the Jones family and Taylor

• Refer to the Snapshot on pages 2-4• Remember

– Family size– Neighborhood carpool

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© Take Charge Today – Updated April 2010 – 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

Jones’ Major ExpendituresMajor Expenditures Summary

• Transfer numbers to complete the summary

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Spending PlanPayroll Withholdings

• Review Taylor’s paycheck on page 11– State Withholding Tax– Federal Withholding Tax– FICA

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Spending PlanSavings

• 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

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© Take Charge Today – Updated April 2010 – 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 PlanTransportation

• 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

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© Take Charge Today – Updated April 2010 – 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

Taylor’s Spending PlanOthers

• Choose which “others” items Taylor would like– 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

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© Take Charge Today – Updated April 2010 – 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

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.

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© Take Charge Today – Updated April 2010 – 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

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!

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© Take Charge Today – Updated April 2010 – 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

Reflection Questions

• Once the difference equals zero….– Answer questions 18-22 throughout the

simulation– Answer questions 23-27 on page 18