Family Economics & Financial Education

1. Family Economics & Financial Education 3.19.1.G1 Get ready to Take Charge of Your Finances Life Of….. Taylor B. Jones “A Teenager’s Spending Plan”

2. Snapshot – Taylor B. Jones • Sneak peak of the life of Taylor and his family • Taylor • Liz • Ella • Jerome

3. SnapshotTaylor’s Income and Expenses • Taylor’s Income • Cubby’s Restaurant & Grill • $5.25/hour • 10 hours a week • $75.00/ month for tips • Allowance • $20.00/month • Gifts • $50.00 birthday gift

4. SnapshotTaylor’s Income and Expenses • Taylor’s Expenses • Transportation • Fuel • Other Items

5. 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

6. 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

7. Housing • Monthly Payment • Housing payment • Insurance • Property taxes • Repairs • Maintenance • Utilities • Heat • Electricity • Water • Sewer • Garbage

8. Housing Others • Satellite Dish • Digital Cable • Telephone • Internet

9. 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

10. Others • Cellular Phone • Motocross Upgrades • Electronics • Hobbies • Entertainment • Create Your Own

11. 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

12. 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

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

14. Personal Information Taylor’s Paycheck State the employee’s name, address, and social security number.

15. Pay Period Taylor’s Paycheck The length of time for which an employee’s wages are calculated.

16. Gross Pay Taylor’s Paycheck The total amount of money earned during the pay period before payroll withholdings.

17. Payroll Withholdings Taylor’s Paycheck The amount of money subtracted from the gross pay for taxes.

18. Withholding Tax Taylor’s Paycheck The amount required by law for employer to withhold from earned wages to pay taxes.

19. FICA Taylor’s Paycheck Federal Insurance Contribution Act – includes Social Security and Medicare

20. Net Pay Taylor’s Paycheck The amount of money left after all payroll withholding have been taken from the gross pay.

21. Year-to-Date 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.

22. Setting Financial Goals • Short Term – less than one year • Long Term – more than one year

23. 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

24. 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

25. Jones’ Major ExpendituresMajor Expenditures Summary • Transfer numbers to complete the summary

26. Taylor’s Spending PlanPayroll Withholdings • Review Taylor’s paycheck on page 11 • State Withholding Tax • Federal Withholding Tax • FICA

27. 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

28. 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

29. 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

30. 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.

31. 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!

32. Reflection Questions • Once the difference equals zero…. • Answer questions 18-22 throughout the simulation • Answer questions 23-27 on page 18