1 / 6

Spending Plans

Spending Plans. Advanced Level 2.05. What is a Spending Plan?. An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time. A budget. Why is a Spending Plan an important part of financial planning?.

Download Presentation

Spending Plans

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Spending Plans Advanced Level 2.05

  2. What is a Spending Plan? An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time A budget

  3. Why is a Spending Plan an important part of financial planning? Help manage your money in a positive manner Analyze the opportunity costs of your trade-offs to maximize financial well-being Increase net worth Helps set and reach goals

  4. Money Management Tools Statement of Financial Position Income & Expense Statement Spending Plan What is my future money management plan? What is my financial position today? How have I managed my money in the past? Determine what changes to make Make changes

  5. A forward-looking Income and Expense Statement May use the same template for both the Income and Expense Statement and the Spending Plan 

  6. Spending Plan Development Process Step 1 - Track Current Income and Expense Step 5 - Evaluate and Make Adjustments Develop the spending plan Maintain the spending plan Step 4 - Implement and Control Step 2 - Personalize Your Spending Plan Step 3 - Allocate Money to Each Category

More Related