Transcript 2.05 Spending Plan PowerPoint

Spending Plans
Advanced Level
2.05
2.2.5.G1
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
© Take Charge Today – August 2013 – Spending Plans – 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
2.2.5.G1
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 wellbeing
Increase net
worth
Helps set and
reach goals
© Take Charge Today – August 2013 – Spending Plans – 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
2.2.5.G1
Money Management Tools
Statement of
Financial Position
What is my
financial position
today?
Income & Expense
Statement
Spending Plan
How have I
managed my
money in the past?
What is my future
money
management plan?
Determine what changes
to make
Make
changes
© Take Charge Today – August 2013 – Spending Plans – 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
2.2.5.G1
A forward-looking Income and Expense
Statement
May use the same template
for both the Income and
Expense Statement and the
Spending Plan
© Take Charge Today – August 2013 – Spending Plans – 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
2.2.5.G1
Spending Plan Development Process
Develop the
spending plan
Step 5 - Evaluate
and Make
Adjustments
Step 1 - Track
Current Income and
Expense
Step 4 Implement and
Control
Maintain the
spending plan
Step 2 Personalize Your
Spending Plan
Step 3 Allocate
Money to
Each Category
© Take Charge Today – August 2013 – Spending Plans – 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