3.19.3
A Teenager’s Spending Plan”
Family Economics & Financial Education
Life Of…..
Ben West
Get ready to Take Charge
of
Your Finances
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Snapshot
Ben West
As Ben daydreams about getting outside and onto his di
rt bike, his attention is quickly brought back as his instructor
describes a major engine repair technique he is familiar with. Ben attends WC Career and Technical Education
Center and will graduate with a certificate as a mechanical and diesel services technician. Ben does not excel in a
regular high school classroom, so he and his family decided to enroll him in WC where he could strengthen his
mechanical skills and immediately enter the workforce upon completion of the program. e CTE Center also
provides a GED preparation course. Ben quickly enrolled in this course to earn a promotion at his current part-time
job.
Ben works part-time for Lou’s Logging Service and spends every minute of free time working to earn money. With a
mechanical and diesel services technician certificate and GED, Ben will earn a promotion to full-time working status
with a pay increase. He enjoys the intense working conditions logging provides and is looking forward to the
opportunity to work more on the large machinery. e extra income from full-time employment also sounds very
appealing. He has a goal of saving $200 each month to purchase a used vehicle. Right now he shares a vehicle with
his mom and is looking forward to having his own transportation. Unfortunately, he often falls short of the $200
because of high dirt bike repair costs and other leisure activities such as snowboarding and taking his girlfriend Maria
on dates. He also wants to be able to buy Maria an engagement ring in a few years, so saving money is a priority for
Ben.
Ben always has one ear listening for the fire whistle. He volunteers as a junior fireman in his community and takes
pr
ide in how fast he can respond to a neighbor in need. He and the other firefighters spend several hours a month
helping with various community events to raise money to purchase upgraded equipment for the fire trucks. Maria
even helped with the last community fish fry and is considering organizing the next event!
James, Ben’s step-dad, is a heavy equipment operator and works 60-70 hours a week. Although Ben feels like his step
-dad does not understand him, because they spend little time together and rarely communicate, they both enjoy
hunting and try to go out as much as possible. James and Ben’s mom have lived together for ten years and were
married a few years ago. Ben has tried to get to know James by asking for help when fixing his dirt bike, but James
thinks he is wasting his time and energy working on such an old bike. James was laid off from his job last year and is
very conscious about spending as much time at work as possible to earn money to provide for his family.
Ben’s mom, Brenda, works part-time for an electric company as a secretary. She would much rather stay at home full
-time with their three year-old daughter, Anna, but feels her family needs the income and enjoys interacting with
other adults. Brenda and Anna love having tea parties and playing dress-up together in the evenings when Ben and
James are working late. She worries about Ben and James constantly because they both work in dangerous
occupations. Brenda enjoys cooking and volunteers during her lunch hour at the community Senior Citizen Center.
She prepares almost all of the family’s meals at home. She is a skilled shopper and is able to prepare many well
Directions:
Di
rections:Directions:
Directions: e following information is a Snapshot on Ben and his family. Read all information carefully to
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Snapshot
e
e e
e
goal is to create a spending plan that balances Ben's expenses with his income.
goal is to create a spending plan that balances Ben's expenses with his income. goal is to create a spending plan that balances Ben's expenses with his income.
goal is to create a spending plan that balances Ben's expenses with his income.
Social Activities
Ben and his girlfriend, Maria, go out as often as they can when Ben is
not working. ey enjoy going to movies, bowling, dinner or other
community activities. Ben spends $75
$75 $75
$75 each month on social activities
with Maria.
Cellular Phone
Ben’s monthly cell phone plan costs $50 however he is charged
approximately $90
$90 $90
$90 each month. He often uses more minutes than he
has and sends numerous text messages.
Other
On pages 8-9 there are many other items such as a snowboarding season
pass, dirt bike upgrades, electronics, hunting items and entertainment
options. All costs are identified in red
redred
red. You may choose as many of
these items as Ben can afford to purchase.
Saving
To meet his goal of purchasing a used vehicle, Ben saves $200
$200 $200
$200 each
month. However, he often takes money out of savings at the end of the
month to pay for other expenses.
Ben’s Expenses
e expenses Ben is responsible for, or has the option to buy, are described below. When creating Ben’s
Spending Plan, be sure to consider his values, needs and wants before selecting items.
Lou’s Logging
Service
Ben works after school and on the weekends as a logger. He earns
$13.00 per hour
$13.00 per hour $13.00 per hour
$13.00 per hour and works fteen hours a week
fteen hours a weekfteen hours a week
fteen hours a week.
Ben’s Income
Although Ben has good attendance at WC Career and Technical Center, he would much rather be working for
Lo
u’s Logging Service full-time. Because of his class schedule he currently only works part-time and during the
busy logging season eight months a year. Ben has learned a lot through his classes and at work to strengthen his
skills and is looking forward to a promotion and working full-time when he passes his GED this spring. Ben is
not a great student, but is confident in his abilities to keep up with new technology and earn enough money to pay
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Snapshot
Housing
Ja
mes and Brenda own a home on 1/4 acre of land in town. ey allocate $600
each month to spend on the monthly payment, utilities, and other housing
expenses including television, internet and telephone described on pages 5 and 6.
ey must pay for the monthly payment and utilities, but the other expenses are
optional. When making housing decisions for the family, remember $625
$625$625
$625 is the
maximum amount for all housing expenses.
Transportation
e West family owns one car for James to drive to work
but need a different
vehicle for Brenda and Ben to share a couple days a week. e amount the family
has available for the family’s second vehicle is $250
$250$250
$250 which includes the monthly
payment and fuel expenses.
Insurance
e West family pays $300
$300$300
$300 each month for insurance with limited coverage. eir
homeowner’s, disability, life and auto insurance costs for both vehicles are included.
e family receives full family health coverage through James’ employer.
Food
Brenda is very resourceful and stretches food dollars as far as she can. Ben and his
step-dad supplement the family’s meat supply with hunting large game. e family
does not eat out often and all family members pack a daily lunch with leftovers
from the night before. Each month the West family allocates $300
$300$300
$300 for food.
Credit Card
Balance
James was laid off from his job for about four months last year and his family used
credit cards to pay their bills. Although he is now employed and earning a steady
income, the family is still trying to pay off their debt. ey currently have $6,500
in credit card debt with a minimum payment of $160
$160$160
$160 monthly. ey try really
hard to pay as much as they can each month, but sometimes they do not have
enough to pay more than the minimum balance.
Ben’s Expenses
Ben’s mom and step-dad work together to ensure he has
the basic necessities such
as clothing, toiletries and other personal items. ey understand that he works
very hard at his part-time job and try to help him financially whenever they can,
however they have limited finances to do so.
West Family Expenses
Directions:
Di
rections:Directions:
Directions: e chart below describes the West’s major expenditures; housing, transportation, insurance and
food. Read each category below to determine how much is allocated for each expenditure. A house and vehicle
need to be selected for the family from the options on pages 5-7. e total amount allowed for all housing and
transportation expenses are described below and must not be exceeded when completing the West family
spending plan on pages 13-14.
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Housing
Directions:
Directions:Directions:
Directions: Choose one home for the West family. Consider the size of the family, age of
all family members and the family’s lifestyle. e
Monthly Payment
Monthly Payment Monthly Payment
Monthly Payment
includes the housing
payment, property taxes, repairs and maintenance. e
Utilities
UtilitiesUtilities
Utilities
cost includes heat,
electricity, water, sewer and garbage. Refer to page 4 for the total amount allotted for
housing expenses ($600) and record the following housing others for the West family on
House D
House DHouse D
House D
is charming 900 sq. ft. 2 story home
includes 2 bedrooms with full closets, 1
bathroom, updated kitchen cabinets and a
small entry way. A detached single garage is
included that contains various tools left from
previous owners.
Monthly Payment: $455.00
Utilities: $134.46
House C
House CHouse C
House C
A 1000 sq. ft. home built in the year 1900. It
features oak floors, 3 small bedrooms, 1.5
bathrooms, full kitchen, and a family room.
e windows need to be replaced and the
small detached garage needs a few new
shingles.
Monthly Payment: $375.00
House A
House AHouse A
House A
is newly constructed 1650 sq. ft., 4
bedroom, 2 bathroom home is ready to move
into. e open floor plan includes a living
room with fireplace and small dining room.
e kitchen is furnished with new appliances
and a double garage is attached.
Monthly Payment: $605.00
Utilities: $118.20
House B
House BHouse B
House B
An older 1245 sq. ft. home featuring 3
bedrooms, 1.5 bathrooms, a small kitchen,
and few newly painted rooms. e washer
and dryer are included but require
maintenance. e attached double garage
has an additional heated storage room or
work space.
Monthly Payment: $480.00
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Housing Others
Directions:
Directions:Directions:
Directions: e following options are for the West’s home. Before making any decisions,
LOCAL ANTENNA
LOCAL ANTENNA LOCAL ANTENNA
LOCAL ANTENNA
Local reception with antenna booster: $0.00
Includes four local stations (ABC, CBS, NBC, PBS).
INTERNET
IN
TERNETINTERNET
INTERNET
56K dial-up access: $17.55
Wireless access: $39.00
DSL access: $49.00
PHONE LINE IN HOUSE
PHONE LINE IN HOUSEPHONE LINE IN HOUSE
PHONE LINE IN HOUSE
Basic package: $26.00
Includes only a phone line with no special services
and no long distance.
Advanced package: $34.00
Includes a phone line with caller ID, call waiting,
and voice mail with no long distance.
Long Distance package: $25.00
Unlimited long distance usage with the
basic or advanced package.
DIGITAL CABLE
DIGITAL CABLE DIGITAL CABLE
DIGITAL CABLE
Basic Package: $52.99
Includes basic (ABC, CBS, FOX, NBC, PBS) and expanded (CNN, DISC, ESPN, FAM, MTV,
TBS, TWC, WGN, etc.) channels.
Expanded Package: $65.99
In
cludes basic and expanded channels plus one movie package (4 Cinemax channels, 8
HBO channels, 12 Showtime channels, or 17 Starz/Encore channels).
Everything Package: $85.99
Includes basic and expanded channels with all four movie packages.
SATELLITE DISH
SATELLITE DISHSATELLITE DISH
SATELLITE DISH
Top 100 Package: $29.99
Includes 100 channels in children’s programming, entertainment, family programming,
music channels, news, public interest, and sports.
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Transportation
Directions:
Directions:Directions:
Directions: Choose one vehicle for Ben and his mom to share and record the costs on page
14. e
Monthly Payment
Monthly PaymentMonthly Payment
Monthly Payment
includes the car payment and maintenance costs. Remember,
the West family has allocated $250 each month for their second vehicle. Choose one of the
options described below and record on the spending plan on page 16.
C.
$8,105
2002 Pontiac Bonneville
Monthly Payment: $197.00
Fuel Costs: $54.65
B.
$6,400
1994 Chevy 1/2 Ton
Monthly Payment: $178.00
Fuel Costs: $88.60
$8,995
1998 Doge Dakota
Monthly Payment: $239.00
Fuel Costs: $75.25
A.
$6,941
2001 Toyota Camry
Monthly Payment: $168.20
Fuel Costs: $50.00
E.
D.
$15,941
2005 Ford Escape
Monthly Payment: $240.00
Fuel Costs: $65.21
$12,990
2000 Chevy Blazer
Monthly Payment: $230.30
Fuel Costs: $70.50
F.
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Directions:
Directions:Directions:
Directions: e following “other” items are available for Ben to purchase. You may choose
any items described below. Each cost listed in red
red red
red is a monthly expense that must be
recorded on page 16 of Ben’s spending plan.
DIRT BIKE TOOLS AND UPGRADES
DI
RT BIKE TOOLS AND UPGRADESDIRT BIKE TOOLS AND UPGRADES
DIRT BIKE TOOLS AND UPGRADES
ELECTRONICS
ELECTRONICSELECTRONICS
ELECTRONICS
iPod Shuffle: $69.90
$69.90$69.90
$69.90
512 MB that holds 120 songs with a twelve hour rechargeable battery.
Sony Video WALKMAN: $224.95
$224.95$224.95
$224.95
6 GB with a ten hour rechargeable battery with video playback capabilities.
Canon PowerShot A520 Digital Camera: $1
19.95
$119.95$119.95
$119.95
SNOWBOARD LIFT TICKE
SNOWBOARD LIFT TICKESNOWBOARD LIFT TICKE
SNOWBOARD LIFT TICKETS
TSTS
TS
Single day pass: $42.00
$42.00$42.00
$42.00
Ski on all terrain from 9:00am to
4:00pm.
Frequent skier pass: $250.00
$250.00$250.00
$250.00
Includes ten lift tickets for all terrain.
Season pass: $375.00
$375.00$375.00
$375.00
Unlimited skiing from November to
EQUIPMENT RENTALS
EQUIPMENT RENTALSEQUIPMENT RENTALS
EQUIPMENT RENTALS
One to two day rental: $25.00
$25.00$25.00
$25.00
Includes board with bindings and
boots.
ree to four day rental: $22.00
$22.00$22.00
$22.00
Includes board with bindings and
boots.
Titanium full exhaust system: $540.00
$540.00$540.00
$540.00
e Pro Series Titanium complete exhuast system uses the latest exhuast
design technology and high-end aerospace grade titanium.
Motion pro T handle: $40.95
$40.95$40.95
$40.95
Feature deep six point sockets with carbon steel T-handles. Include lifetime
replacement warranty.
Full waffle grips: $11.95
$11.95$11.95
$11.95
e twist throttle grips can
be ordered with soft,
medium and firm
compounds. Sold in pairs.
Dunlop tire: $90.95
$90.95$90.95
$90.95
4 sroke, dirtbike tire with
special construction to handle
off-road conditions.
Others
3.19.3
Family Economics & Financial Education
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Others
CREATE YOUR OWN
CREATE YOUR OWNCREATE YOUR OWN
CREATE YOUR OWN
Draw a picture and list the cost of other items that Ben would like to have in the space provided.
Renting movies: $7.00
$7.00$7.00
$7.00
2 rentals at the local video store.
Date night at the movies: $2
5.00
$25.00$25.00
$25.00
2 box office movie tickets with a large popcorn
and sodas.
iTunes: $0.99
$0.99$0.99
$0.99
Download the greatest hits for 99 each.
ENTERTAINMENT
EN
TERTAINMENTENTERTAINMENT
ENTERTAINMENT
Ice cream for two: $6.50
$6.50$6.50
$6.50
Take Maria out to the local ice cream shop.
Rock concert with friends: $3
5.00
$35.00$35.00
$35.00
1 ticket to a rock concert of your choice.
Swimming at the local pool: $5.00
$5.00$5.00
$5.00
Enjoy unlimited swimming at the local pool
with this monthly swimming pass.
HUNTING
HUNTINGHUNTING
HUNTING
Huntmaster rifle scope: $44.95
$44.95$44.95
$44.95
Ideal for all purpose hunting with high quality and fully coated
optics. Comes with scope caps.
Camouflage jacket: $39.99
$39.99$39.99
$39.99
Lightweight, quick-drying and
durable jacket for all hunting
occasions.
Reloading Guide Book: $14.95
$14.95$14.95
$14.95
is guide describes all
steps of the reloading
process with detailed
directions to get started.
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Snapshot Reflection
Directions:
Di
rections:Directions:
Directions: Pages 10-17 include reflection questions and spending plan worksheets. Read each question carefully
and respond with a short answer or insert the correct dollar amount. Each line is worth 1 point if not otherwise
1. Describe how attending WC Career and Technical Education Center helps Ben reach his career goals.
(1 point)
2. Although Ben saves money each month, he often uses some of his savings to pay other expenses if
his income does not stretch far enough. Describe how he could change his spending habits to
prevent this from occurring. (1 point)
3. What are Ben and his family’s values which impact the decisions made when creating their spending
plans? (1 point)
4. Describe the major expenditures the West family provides for Ben. (1 point)
5. Describe how volunteering for the community fire department strengthens Ben’s human capital. (1 point)
105 Points Possible
Po
ints Earned
Percentage
Name
_____________________
Date
_____________________
Class
_____________________
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
6. What is Ben’s net pay? How is this determined? (1point)
7. What three deductions are added together to determine Ben’s monthly payroll withholdings? (3 points)
Directions:
Directions:Directions:
Directions: Read the paycheck below and answer questions 6 and 7 in the spaces provided.
Ben’s Paycheck
Lou’s Logging Service
Authorized Signature
Lou’s Logging Service
4151 Keene Avenue
Rural Area, USA 12345
1234
Date March 5, 2007
National Bank
5832 Main Street
Any City, USA 98765-4321
Dollars
$627.90
Ben West
Pay To The
Order Of:
Six hundred twenty-seven and 90/100
Memo
0123456789 : 0987654321 : 1234
February Paycheck
Lou’s Logging Service Pay Period 2/1/2007-2/29/2007
Employee
West, Ben
SSN
999-88-7777
Check #
1234
Check Amount
$627.90
Employee Address
34110 159th Street
Rural Area, USA 12345
Hourly Rate
Number of Hours
Gross Pay
Year-to-date
Gross Pay
Deductions Current Year-to-date
$13.00/hour
60 hours
$780.00
$1,560.00
Federal Withholding
State Withholding
FICA
$69.42
$23.40
$59.28
$138.84
$46.80
$118.56
Totals $152.10 $304.20
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Directions:
Directions: Directions:
Directions: After reading Ben’s Snapshot on pages 2-4 and reviewing the items Ben can purchase
on pages 8 and 9, answer the following questions. Remember to include the 5 elements of goal
setting described below when setting education and financial goals.
9. Write one long-term goal for Ben. (reached in a time period more than one year) (5 points)
8. Write one short-term goal for Ben. (reached in a time period less than one year) (5 points)
10. Why is it beneficial to set education and financial goals? (1 point)
Setting Goals
SMART Goal
SMART GoalSMART Goal
SMART Goal
S
SS
Specic
pecicpecic
pecic
State exactly
what you would
like to do.
M
MM
Measurable
easurableeasurable
easurable
Include how the
success of the
goal can be
measured.
A
AA
Attainable
ttainablettainable
ttainable
Determine how
the goal can be
reached.
R
RR
Realistic
ealisticealistic
ealistic
Do not set the
goal for
something
unattainable or
unrealistic.
T
TT
Time Bound
ime Boundime Bound
ime Bound
Specifically state
when the goal
needs to be
reached.
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Directions:
Directions:Directions:
Directions: Refer to pages 5 and 6 to determine the housing options for the West family. Record
all expenses on the lines below and answer questions 11-13 in the spaces provided.
Expenses—Housing
12. What is the letter of the house that you chose? Why did you choose this home? (2 points)
11. How much money has the West family allocated for their total housing expenses? (1 point)
HOUSING
HOUSINGHOUSING
HOUSING
From the options on page 5, choose a home for the
West family and record the Monthly Payment on line
A, the Utilities on line B and Housing Total on line C.
Monthly Payment:
Utilities :
HOUSING TOTAL:
HOUSING TOTAL:HOUSING TOTAL:
HOUSING TOTAL:
(A + B = C)
A.
A.A.
A.
B.
B.B.
B.
C.
C.C.
C.
13. How did you determine which Housing Others the West family needed? (1 point)
TOTAL HOUSING COST
TOTAL HOUSING COSTTOTAL HOUSING COST
TOTAL HOUSING COST
Add the Housing Total and Housing Others Total
from above to determine the West Total Housing Cost
and write on line L. Ensure is it less than or equal to the
allocated amount described on page 4.
Housing Total:
Housing Others Total :
TOTAL HOUSING COST:
TOTAL HOUSING COST:TOTAL HOUSING COST:
TOTAL HOUSING COST:
(I + J = K)
J.
J.J.
J.
K.
K.K.
K.
L.
L.L.
L.
HOUSING OTHERS
HOUSING OTHERSHOUSING OTHERS
HOUSING OTHERS
After reading the other housing expenses on page
6, determine which the West family will have.
List which options were chosen on the line
before each expenditure. Record the monthly
expense of each desired item on lines D-H and
calculate the subtotal on line I.
Antenna:
__________________ Internet:
_________ Landline Telephone:
______________ Digital Cable:
______________ Satellite Dish:
HOUSING OTHERS TOTAL:
HOUSING OTHERS TOTAL:HOUSING OTHERS TOTAL:
HOUSING OTHERS TOTAL:
D.
D.D.
D.
E.
E.
E.
E.
F.
F.F.
F.
G.
G.G.
G.
H.
H.H.
H.
I.
I.I.
I.
Wests Major Expenditures
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Directions:
Directions:Directions:
Directions: After reviewing the transportation options on page 7, choose one vehicle for Ben and
his mom. Answer questions 14-16 in the spaces provided.
West Family Major Expenditures Summary
MAJOR EXPENDITURES
MAJOR EXPENDITURESMAJOR EXPENDITURES
MAJOR EXPENDITURES
Refer to the West family snapshot on
page 4, selections made on page 13 and
those listed above to complete the major
expenditures summary. All expenses are
listed on lines P thru T with the total on
line U.
Expenses—Transportation
16. What is the letter of the vehicle you chose? Why did you choose this vehicle? (2 points)
15. What did you consider about Ben and Brenda’s driving schedule and transportation needs
described in the Snapshot on pages 2-4 before making a transportation decision? (1 point)
14. How much money has the West family allocated for their total transportation expense? (1 point)
Monthly Payment :
Fuel:
TRANSPORTATION TOTAL:
TRANSPORTATION TOTAL:TRANSPORTATION TOTAL:
TRANSPORTATION TOTAL:
(M + N = N)
M.
M.M.
M.
N.
N.N.
N.
O.
O.O.
O.
TRANSPORTATION
TRANSPORTATIONTRANSPORTATION
TRANSPORTATION
Refer to page 7 and decide what car Ben
and his mom will drive. Record the
expenses on lines M and N. Total the
transportation costs on line O and ensure it
is less than or equal to the allocated amount
Total Housing Cost:
Total Transportation Cost:
Insurance:
Food:
Credit Card Balance:
MAJOR EXPENDITURES TOTAL:
MA
JOR EXPENDITURES TOTAL:MAJOR EXPENDITURES TOTAL:
MAJOR EXPENDITURES TOTAL:
P.
P.P.
P.
Q.
Q.Q.
Q.
R.
R.R.
R.
S.
S.S.
S.
T.
T.T.
T.
Wests Major Expenditures
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
17. What services do you receive from paying taxes? (1 point)
Directions:
Di
rections:Directions:
Directions: Identify Ben’s payroll withholdings and amount to save and write on the lines below.
Answer questions 17-19 by writing a short answer in the spaces provided.
Expenses—Payroll Withholdings
State Withholding Tax:
F
ederal Withholding Tax:
FICA:
PAYROLL WITHHOLDINGS TOTAL:
PAYROLL WITHHOLDINGS TOTAL:PAYROLL WITHHOLDINGS TOTAL:
PAYROLL WITHHOLDINGS TOTAL:
PAYROLL WITHHOLDINGS
PAYROLL WITHHOLDINGSPAYROLL WITHHOLDINGS
PAYROLL WITHHOLDINGS
-Review Ben’s paycheck on page 11 to determine his
payroll withholdings and write each on lines V-X.
Total the payroll withholdings and write on line Y.
V.
V.V.
V.
W.
W.W.
W.
X.
X.X.
X.
Y.
Y.Y.
Y.
18. Did you decide to save more money than described in the snapshot? Why or why not? (2 points)
SAVINGS
SAVINGSSAVINGS
SAVINGS
Carefully review the Snapshot on pages 2-4 and short-
term and long-term goals set on page 12 to determine
how much money Ben will save each month. Write this
SAVINGS TOTAL:
SAVINGS TOTAL:SAVINGS TOTAL:
SAVINGS TOTAL:
Z.
Z.Z.
Z.
Expenses—Savings
19. Other than paying for a used vehicle or engagement ring, what could Ben save money for? (1 point)
Ben’s Spending Plan
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
21. If Ben did not want to share a vehicle with his mom and could not afford to purchase his own, what
other options does he have to get to school and work? How much should he include in his spending
20. Was Ben able to afford all items he wanted? Why or why not? (1 point)
Ben’s Spending Plan
Expenses—Others
OTHERS
OT
HERSOTHERS
OTHERS
After selecting the other items Ben
would like, record the name of the
item on the line before the category
title and the costs on lines AA-HH.
Add all lines and record the total on
line II.
Social Activities:
Cellular Phone:
____________Dirt Bike Tools and Upgrades:
________________________Snowboarding:
___________________________Electronics:
____________________________Hunting:
________________________Entertainment:
_____________________Create Your Own:
OTHERS TOTAL:
OTHERS TOTAL:OTHERS TOTAL:
OTHERS TOTAL:
AA.
AA.AA.
AA.
BB.
BB.BB.
BB.
CC.
CC.CC.
CC.
DD.
DD.DD.
DD.
EE.
EE.EE.
EE.
FF.
FF.FF.
FF.
GG.
GG.GG.
GG.
HH.
HH.HH.
HH.
Directions:
Directions:Directions:
Directions: After reviewing the Snapshot on pages 2-4 and all other items on pages 8 and 9,
choose which items Ben would like and record below on lines AA-HH.
22. How could Ben save money on his monthly cell phone bill? (1 point)
Family Economics & Financial Education
3.19.3
© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
Directions:
Directions:Directions:
Directions: Transfer the total cost of all items listed on Ben’s spending plan on pages 15-16 to
complete the Spending Plan Summary below. Once all income and expenses are recorded,
INCOME
GROSS INCOME
GROSS INCOMEGROSS INCOME
GROSS INCOME
Review Ben’s Snapshot on pages 2-4 and his paycheck
on page 11 to determine his gross income and record on
line JJ.
GROSS INCOME TOTAL:
GROSS INCOME TOTAL:GROSS INCOME TOTAL:
GROSS INCOME TOTAL:
JJ.
JJ.JJ.
JJ.
GROSS INCOME
GR
OSS INCOME GROSS INCOME
GROSS INCOME -
--
-
TOTAL EXPENSES
TOTAL EXPENSESTOTAL EXPENSES
TOTAL EXPENSES
To determine if Ben has enough income to pay for his
expenses, subtract his Expenses Total from his Gross
Income Total.
If the difference is a negative number, go back and adjust
Ben’s expenses. e amount on line QQ needs to equal
zero to have a balanced spending plan.
Gross Income Total:
Expenses Total :
DIFFERENCE
DIFFERENCEDIFFERENCE
DIFFERENCE:
::
:
(OO— PP = QQ)
OO.
OO.OO.
OO.
PP.
PP.PP.
PP.
QQ.
QQ.QQ.
QQ.
Difference
Ben’s Spending Plan Summary
EXPENSES
BENS TOTAL EXPENSES
BENS TOTAL EXPENSESBENS TOTAL EXPENSES
BENS TOTAL EXPENSES
Review Ben’s Snapshot on pages 2-4, his paycheck on
page 11, his savings which were determined on page 13,
and the other items recorded on page 16 to determine
his total expenses. Record each item on lines KK-MM
to the right and total on line NN.
Payroll Withholdings:
Savings:
Others:
EXPENSES TOTAL:
EXPENSES TOTAL:EXPENSES TOTAL:
EXPENSES TOTAL:
(KK + LL + MM = NN)
KK.
KK.KK.
KK.
LL.
LL.LL.
LL.
MM.
MM.MM.
MM.
NN.
NN.NN.
NN.
Family Economics & Financial Education
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© Family Economics & Financial Education - April 2007 - Life of…Ben West -Page 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at e University of Arizona
26. What is one thing the West family could do to minimize their credit card debt? (5 points)
24. Describe the benefits of creating a spending plan. (5 points)
23. Was it difficult to equal zero? Why or why not? (6 points)
Directions:
Di
rections:Directions:
Directions: Answer questions 23-27 in the spaces provided to reflect on the Life of Ben spending
plan simulation.
27. What was the most difficult part of creating a spending plan for Ben? (5 points)
25. How will Ben’s financial goals change if he and Maria get married? (5 points)
Snapshot Reflection