SPENDING PLAN

Spending Plan

A spending plan is a financial statement you can use to assist in money management

also known as a budget

Set Financial Goals

Set financial goals. A financial goal should include the following elements- SMART

Specific Measurable Attainable Realistic Time bound

Cash Flow

A measure of the money you receive and the money you spend.

Why is a Spending Plan important? Giving a person an understanding of

where their money is going Tracking income and expenses Help meet financial goals Help people live within their income and

make ends meet Reduce the need for using credit

Sources of Income

Wages or Salaries Tips Withdrawal from savings Interest earned on savings accounts Scholarships Monetary gifts

2 Main Components

Income: money earned Expense: money spent 2 types of Expenses Fixed- have to be paid by specific date

(Food, housing, electricity) Flexible- have to be paid off but often

not by certain date (Food, goals, etc.)

Rent

Fixed Expense

Rent

Wages

Income

Wages

Groceries

Flexible Expense

Groceries

Internet Bill

Fixed Expense

Internet Bill

Tips

Income

Tips

Utilities

Fixed Expense

Utilities

Gifts from Family

Income

Gifts from Family

Savings

Fixed Expense

Savings

Car Registration

Fixed Expense

Car Registration

Eating Out

Flexible Expense

Eating Out

Scholarships

Income

Scholarships

Hobbies

Flexible Expense

Hobbies

Net Loss and Net Gain

Net Loss- have more expenses than income during that period on spending plan

Net Gain- more income than expenses

How much will you get paid?Depends on where you live

www.salary.com