3.19.5
“A Teenager’s Spending Plan”
Family Economics & Financial Education
Life Of…..
Carlos Chavez
Get ready to Take Charge
of Your Finances
3.19.5
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Family Economics & Financial Education
Carlos Chavez
Carlos gives his Nana, Martha, a kiss, grabs his track shoes and runs out the door to his car. He received the car as a gift from
his mother on his 17
th
birthday. It is Monday morning and he does not want to be late for school. Carlos is in his junior year at
Desert High School and is highly competitive on the track team, running in the 300 meter hurdles event. During track season,
practices occur Monday through Thursdays and track meets are on Friday evenings. Carlos’ parents can always be found in the
stands cheering him on!
On Tuesdays after track practice and on Saturdays, he works at the Sunshine Inn where his mother helped him to receive a job
on the maintenance staff working part-time. After working there for the past year, he has an interest in hospitality and is
hoping to earn a position in management soon. During the past year, Carlos has proved his commitment and willingness to
work hard. He has recently received a raise that allows him to save money for items that will help him to achieve his goals.
Carlos has been saving $40.00 per month to support his family. Jorge and María are very proud of Carlos. They recognize that
he will be the first in their family to pursue a higher education degree. The local community college offers an associate degree
in hospitality management that Carlos is currently saving $50.00 per month in a money market account to help pay expenses.
María has worked at the Sunshine Inn as a housekeeper for the past twenty years. She works a set schedule of 9:00 am to 4:30
pm Monday through Saturday. She always has Sunday off and enjoys spending the day with her family. María appreciates the
flexibility of her hours which allows her to take care of Adriana, their six year old daughter who is visually impaired. María is
able to walk her to school each day. Adriana currently attends a public School for the Deaf and Blind. She enjoys participating
in the after school reading and tutoring program. Carlos’ father, Jorge, walks to Adriana’s school after work, picks her up, and
together they take the bus home.
Jorge takes the public bus to work at the local post office as a mail carrier. Jorge’s hours consist of 7:30 am to 3:30 pm Monday
through Saturday. Jorge has Sundays off to spend with his family plus one other rotating day during the week. Because Jorge
leaves for work early in the morning, Carlos’ younger brother, Marco, is walked to the middle school by his Nana who has lived
in their four bedroom home since her husband passed away just over a year ago. Martha helps to take care of the children
before and after school, watches over Adriana and Marco on the weekends, and helps with light housework. María and Jorge
are fortunate to have Nana caring for and sharing stories with their children rather than using an alternative source of
childcare.
On Monday evenings, the entire family loves going to Jorge’s softball games. It has become a tradition for the softball team’s
families to have a potluck barbeque at the park before the game. Carlos enjoys spending time with his family and close friends
from throughout the city at the barbeque.
Although the family is very busy with everyone’s different schedules, they spend Sundays together at their church for mass in
the morning, the church luncheon, and Youth Group Meetings. Carlos is excited about the upcoming ski trip that his youth
group is planning. This Sunday, after the church luncheon, the family plans to go car shopping for a used car for María now
that she has given her car to Carlos. They have a goal of finding a car that will allow enough space for the children to ride
comfortably as well as supplies when the family travels together.
Directions: The following information is a Snapshot on Carlos and his family. Read all information carefully to
make wise decisions when creating a spending plan for the Chavez family.
Snapshot
3.19.5
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Snapshot
Extracurricular
Activities
Carlos is responsible to pay for half of all of his track costs. Each season
this cost is $30.00. Carlos saves $2.50 per month to pay for his costs.
Carlos is also responsible for half of the ski trip that he will go on with
his church youth group. The total cost of the trip is $120.00 per person.
Carlos saves $5.00 per month for this expense.
Transportation
Carlos uses his mother's old car and is responsible for the gas and oil
changes. Each month he spends $100.00 to maintain the car. Carlos’
insurance is paid for by his family until he graduates.
Other
On pages 8-9 there are many other items including new ski supplies,
video games, clothing, or other items for general entertainment. All
costs are identified in red. You may choose as many of these items as
Carlos can afford to purchase.
Lunch
Carlos brings his lunch from home four days a week and purchases
lunch one day a week. Carlos is responsible for any lunches that he eats
out instead of bringing from home. This is $24.00 per month.
Savings
Carlos saves $40.00 per month to support his family and $50.00 per
month for his future college expenses.
Carlos’ Expenses
The expenses Carlos is responsible for, or has the option to buy, are described below. When creating Carlos’
Spending Plan, be sure to consider his values, needs and wants before selecting items.
Sunshine inn
Carlos works after school and on the weekends as a part of the
maintenance staff. He earns $8.50 per hour and works ten hours a
week.
Carlos’ Income
Although Carlos is very competitive on his track team and a full-time high school student, he finds time to work
part-time. Carlos’ career goal is to become the manager of a hotel. He has begun his work in the hospitality
industry on the maintenance staff at Sunshine Inn. Carlos just received a raise for proving his commitment and
ability to work hard during the past year. He is hoping to use his extra income to save for items that will help him
achieve his future goals.
The goal is to create a spending plan that balances Carlos expenses with his income.
He cannot have more expenses than income.
3.19.5
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Family Economics & Financial Education
Snapshot
Housing
The Chavez family lives in a four bedroom home. The family has budgeted
$1,000.00 each month for the mortgage and an additional $150.00 for utilities.
This amount must cover housing expenses, utilities, and all housing extras chosen.
Transportation
The Chavez family will be purchasing one car and Carlos is currently driving his
mother’s old car. María and Jorge have decided to give their car to Carlos and
purchase a new one that will work for the size of their family. They have allocated
$400.00 each month for a monthly payment and $150.00 per month for fuel.
They also allocate $28.00 per month for Jorge’s bus fare.
Insurance
The Chavez family pays $400.00 each month for insurance. An incredible benefit
of Jorge’s job is that it provides excellent health, disability, and life insurance for his
entire family. Because of this, the Chavez’s cost of insurance is greatly reduced and
includes homeowners, and automobile.
Food
The Chavez family rarely eats out of the home. They have allocated $800.00 each
month for groceries, eating out, and for their children’s school lunches.
Savings
An advantage to Jorge’s job is an employer supported retirement fund. María and
Jorge also save $125.00 each month for future college expenses for their children.
Carlos’ Expenses
Carlos’ parents want him to learn how to save money and spend it wisely. Carlos
is responsible for paying half of all of his extracurricular activities and lunches he
purchases instead of bringing from home.
Debt
María and Jorge are also paying off a debt of $11,000 for medical costs for their
daughter. They did have medical insurance however, it did not cover all of the
expenses. They pay $155.00 each month towards their debt.
Chavez Family Expenses
Directions: The chart below describes the Chavez’s major expenditures; housing, transportation, insurance
food, savings and debt. 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. The total amount allowed for
all housing and transportation expenses are described below and must not be exceeded when completing the
Chavez family spending plan on pages 13-14.
3.19.5
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Family Economics & Financial Education
Housing
Directions: Choose one home for the Chavez family. Consider the size of the family, age
of all family members and the family’s lifestyle. The
Monthly Payment
includes the
housing payment, property taxes, repairs and maintenance. The
Utilities
cost includes heat,
electricity, water, sewer and garbage. Refer to page 4 for the total amount allotted for housing expenses
($1,150.00). This includes the home, utilities, and any extras that you may choose for the family. Record
the following housing others for the Chavez family on page 13 of the spending plan.
House A
This 1,567 sq. ft., 3 bedroom, 2.5 bathroom home
includes a 2 stall garage. This home is located on a
busy street that makes all needs easily accessible.
Monthly Payment: $1,200.00
Utilities: $145.00
House B
This 4 bedroom, 2 bathroom, 2 stall garage home
is 1,677 sq. ft. This home is a short walk to the
local public school, and the bus stop.
Monthly Payment: $850.00
Utilities: $150.00
House C
A 1,800 sq. ft. home features 3 bedrooms, 2
bathrooms, and sits on 1.7 acres of land. This
home is a short walk to the local bus stop.
Monthly Payment: $1,000.00
Utilities: $150.00
House D
A 2,000 sq. ft. home that includes 4 bedrooms and
a guest room. It also has 2 bathrooms and a two
car garage. This home is away from the noise of
the city. Excellent location to raise children.
Monthly Payment: $2,200.00
Utilities: $135.00
3.19.5
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Family Economics & Financial Education
ADDITIONAL ADD ONS
Housing Others
Directions: The following options are for the Chavez’s home. Before making any
decisions, take into consideration how much free time the Chavez’s have and the needs of
the family.
INTERNET
56K dial-up access: $27.55
Preferred internet: $44.95
Premier internet: $59.95
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
Basic Package: $21.95
Includes access to local channels.
Expanded Package: $47.95
Includes an additional range of cable programming featuring ESPN, Bravo, Discovery Channel, TLC,
Cartoon Network, and much more.
Everything Package: $52.95
Enjoy high quality digital picture and sound on over 250 channels.
One Tier: $6.00
Two Tiers: $10.00
Three Tiers: $13.00
Four Tiers: $15.00
Movie Tier: Watch countless movies
Variety Tier: A variety of programming including
Hallmark, Oxygen, Fuse, and others
Sports and Information Tier: Stay up to date with
your favorite teams
Paquete Latino Tier: Spanish-language programs
CELLULAR PHONE
Family plan: $70.00
Includes 2 lines with 700 minutes each
additional line is $5.00 per month. Caller
ID, call waiting, voice mail and long
distance.
Family plan: $170.00
Includes unlimited lines and 3,000
minutes per month. Caller ID, call waiting,
voice mail and long distance.
3.19.5
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Family Economics & Financial Education
Transportation
Directions: Choose one vehicle for Carlos’ parents and record the costs on page 14. The
Monthly Payment
includes the car payment and maintenance costs. Remember, the
Chavez family has allocated $400.00 each month for a monthly payment and $150.00 per
month for fuel costs. Choose one of the options described below and record on the spending
plan on page 16.
C.
$10,105.00
2000 Lexus IS
Monthly Payment: $168.42
Fuel Costs: $54.65
$20,400.00
2005 Dodge Ram
Monthly Payment: $340.00
Fuel Costs: $188.60
$8,995.00
1998 Ford Contour
Monthly Payment: $149.92
Fuel Costs: $50.00
$8,941.00
2000 Chevrolet Silverado
Monthly Payment: $149.01
Fuel Costs: $200.00
E.
D.
$21,941.00
2007 Ford Expedition
Monthly Payment: $365.68
Fuel Costs: $150.00
$18,999.00
2005 Hyundai Tucson
Monthly Payment: $316.00
Fuel Costs: $170.00
A.
B.
F.
3.19.5
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Family Economics & Financial Education
Directions: The following “other” items are available for Carlos to purchase. You may
choose any items described below. Each cost listed in red is a monthly expense that must be
recorded on page 16 of Carlos’ spending plan.
ADDITIONAL RUNNING SUPPLIES
VIDEO GAMES
Wireless controller: $30.90
Light weight, quick response game controller without the hassle of a cord getting in your way.
Battery charger: $24.95
Use this rechargeable dock station to keep batteries in a high energy state.
Game System: $219.95
With the newest game system you can play your favorite games.
NEW DOWNHILL SKI SUPPLIES
Ski goggles: $22.00
Keep the snow out of a skiers face with
these fog resistant goggles.
Ski boots: $250.00
Own your own comfortable ski boots
designed to keep an athletes feet warm!
Skis: $150.00
A pair of skis that have advanced nano
technology to help stability even when
a direction is quickly changed.
Others
ELECTRONICS
Stereo: $50.00
Includes a connection for your
MP3 player.
Digital Camera $122.00
Clear pictures which can be easily
loaded onto a computer.
MP3 Player $125.95
Listen to all of your favorite
music with this MP3 Player.
Take it on the road with you or
for a run.
Free weights $25.00
Help any athlete stay in shape from the comfort of their own home by using free weights.
Running Shorts: $50.00
Running shorts that will to take
sweat away from the body,
allowing the race to be run more
Water Bottle $11.95
This water bottle is
insulated to keep beverages
at the desired temperture.
Running watch: $100.95
A heart rate monitor for a serious runner is essential. This will help the
runner know the time and stay on pace.
3.19.5
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Family Economics & Financial Education
Others
CREATE YOUR OWN
Draw a picture and list the cost of other items that Carlos would like to have in the space provided.
Renting movies: $7.00
2 rentals at the local video store.
Date night at the movies: $35.00
2 box office movie tickets with a large popcorn
and sodas.
MP3s: $0.99
Download the greatest hits for $0.99 each.
ENTERTAINMENT
Varsity jacket: $159.99
Lightweight, quick-drying and
durable jacket to support your
school and athletic
team.
Comic Books: $1.95
Entertainment while
reading about your
favorite comic book
characters.
CELLULAR PHONE
450 minutes, voicemail, caller id, 250 text messages per month: $40.00
900 minutes, voicemail, caller id, 350 text messages per month: $60.00
Unlimited minutes and text messages, voicemail, caller id: $100.00
Ice cream for two: $6.50
A night out at the local ice cream shop.
Rock concert with friends: $35.00
1 ticket to a rock concert of your choice.
Swimming at the local pool: $5.00
Enjoy unlimited swimming at the local pool
with this monthly swimming pass.
Concert Ticket to your favorite band: $50.00
A MP3 Adaptor: This will allow you to play your favorite MP3s in your car as you travel: $25.00
Family Economics & Financial Education
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3.19.5
Snapshot Reflection
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
indicated in parenthesis.
1. Describe how working at the Sunshine Inn will help Carlos reach his career goal. (1 point)
2. Why do you believe Carlos gives money to his family each month? (1 point)
3. What are Carlos and his family’s values which impact the decisions made when creating their spending
plans? (1 point)
4. Describe the major expenditures the Chavez family provides for Carlos. (1 point)
5. If Nana was not living with the Chavez family, what additional expenses would the Chavez family
have?
(1 point)
115 Points Possible
Points Earned
Percentage
Name
_____________________
Date
_____________________
Class
_____________________
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3.19.5
6. What is Carlos’ net pay? How is this determined? (1 point)
7. What three deductions are added together to determine Carlos’ monthly payroll withholdings? (3 points)
Directions: Read the paycheck below and answer questions 6 and 7 in the spaces provided.
Carlos’ Paycheck
Family Economics & Financial Education
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3.19.5
Directions: After reading Carlos’ Snapshot on pages 2-4 and reviewing the items Carlos 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 Carlos (reached in a time period of more than one year). (5 points)
8. Write one short-term goal for Carlos (reached in a time period of less than one year). (5 points)
10. Why should Carlos set education and financial goals? (1 point)
Setting Goals
SMART Goal
Specific
State exactly
what you would
like to do.
Measurable
Include how the
success of the
goal can be
measured.
Attainable
Determine how
the goal can be
reached.
Realistic
Do not set the
goal for
something
unattainable or
unrealistic.
Time Bound
Specifically state
when the goal
needs to be
reached.
Family Economics & Financial Education
© Family Economics & Financial Education - November 2008 - Life of…Carlos Chavez -Page 13
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3.19.5
Directions: Refer to pages 5 and 6 to determine the housing options for the Chavez 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 choose? Why did you choose this home? (2 points)
11. How much money has the Chavez family allocated for their total housing expenses? (1 point)
HOUSING
From the options on page 5, choose a home for the
Chavez 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:
(A + B = C)
A.
B.
C.
13. How did you determine which Housing Others the Chavez family would have? (1 point)
TOTAL HOUSING COST
Add the Housing Total and Housing Others Total
from above to determine the Chavez 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:
(J+ K = L)
J.
K.
L.
HOUSING OTHERS
After reading the other housing expenses on page
6, determine which the Chavez 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.
________________Digital Cable:
___________________Add Ons:
____________________Internet:
__________Phone Line in House:
_______________Cellular Phone:
HOUSING OTHERS TOTAL:
(D + E + F + G +H = I)
D.
E.
F.
G.
H.
I.
Chavez’s Major Expenditures
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3.19.5
Directions: After reviewing the transportation options on page 7, choose one vehicle for the
Chavez family. Answer questions 14-16 in the spaces provided.
Chavez Family Major Expenditures Summary
MAJOR EXPENDITURES
Refer to the Chavez 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 Q thru U with the total on
line V.
ExpensesTransportation
16. What is the letter of the vehicle you choose? Why did you choose this vehicle? (2 points)
15. What are benefits of Jorge taking the bus to and from work each day? (1 point)
14. How much money has the Chavez family allocated for their total transportation expense? (1 point)
Monthly Payment:
Fuel:
Bus Pass:
TRANSPORTATION TOTAL:
(M + N + O = P)
M.
N.
O.
P.
TRANSPORTATION
Refer to page 7 and decide which vehicle
Carlos’ parents will drive. Record the
expenses on lines M, N, and O. Total the
transportation costs on line P and ensure it
is less than or equal to the allocated amount
on page 4.
Total Housing Cost:
Total Transportation Cost:
Insurance:
Food:
Debt:
Savings:
MAJOR EXPENDITURES TOTAL:
(Q + R + S + T + U +V = W)
Q.
R.
S.
T.
U.
V.
W.
Chavez’s Major Expenditures
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3.19.5
17. What services do individuals receive from paying taxes? (1 point)
Directions: Identify Carlos’ 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
Federal Withholding Tax:
State Withholding Tax:
FICA:
PAYROLL WITHHOLDINGS TOTAL:
( X + Y+Z = AA)
PAYROLL WITHHOLDINGS
Review Carlos’s paycheck on page 11 to determine his
payroll withholdings and write each on lines W-Y.
Total the payroll withholdings and write on line Z.
X.
Y.
Z.
AA.
18. Did you decide to save more money than described in the Snapshot? Why or why not? (2 points)
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 Carlos is and will save each month.
Write this amount on line EE.
Family Support:
Education Expenses:
Additional Savings:
SAVINGS TOTAL:
Expenses—Savings
19. What are advantages for Carlos to begin saving money early for college? (1 point)
Carlos’ Spending Plan
BB.
CC.
DD.
EE.
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3.19.5
21. If Carlos chose to bring his lunch from home every day, how would this adjust his spending plan?
(2 points)
20. How did you decide which items to purchase for Carlos? (1 point)
Carlos’ Spending Plan
Expenses—Others
OTHERS
After selecting the other items Carlos
would like, record the name of the
item on the line before the category
title and the costs on lines FF-NN.
Add all lines and record the total on
line OO.
Extracurricular Activities:
School Lunches:
Transportation:
_____________________Running Supplies:
__________________Downhill Ski Supplies:
__________________________Electronics:
________________________Video Games:
_______________________Entertainment:
______________________Cellular Phone:
____________________Create Your Own:
OTHERS TOTAL:
( FF + GG + HH + II + JJ + KK +LL + MM + NN +OO = PP)
FF.
GG.
HH.
II.
JJ.
KK.
LL.
MM.
NN.
OO.
PP.
Directions: After reviewing the Snapshot on pages 2-4 and all other items on pages 8 and 9, choose
which items Carlos would like and record below on lines FF-OO. Some items are required.
22. If Carlos wanted to spend $20.00 on a birthday for his friend, how would you adjust his spending plan
for this expense, and why?
(1 point)
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3.19.5
Directions: Transfer the total cost of all items listed on Carlos’ spending plan on pages 15-16 to
complete the Spending Plan Summary below. Once all income and expenses are recorded,
calculate the difference to determine if Carlos’ spending plan is balanced.
INCOME
GROSS INCOME
Review Carlos’ Snapshot on pages 2-4 and his paycheck
on page 11 to determine his gross income and record on
line QQ.
GROSS INCOME TOTAL:
QQ.
GROSS INCOME - TOTAL EXPENSES
To determine if Carlos 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
Carlos’ expenses. The amount on line XX needs to equal
zero to have a balanced spending plan.
Gross Income Total:
Expenses Total :
DIFFERENCE:
(VV— WW = XX)
VV.
WW.
XX.
Difference
Carlos’ Spending Plan Summary
EXPENSES
CARLOS ’S TOTAL EXPENSES
Review Carlos’ 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 RR-TT to
the right and total on line UU.
Payroll Withholdings:
Savings:
Others:
EXPENSES TOTAL:
(RR + SS + TT = UU )
RR.
SS.
TT.
UU.
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3.19.5
26. Identify examples of how the Chavez family has lowered their expense to save money in their budget to
pay the medical 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? (5 points)
Directions: Answer questions 23-27 in the spaces provided to reflect on the Life of Carlos
spending plan simulation.
27. Insurance is a major expense for families. Jorge’s job provides wonderful benefits with his insurance.
How would the families spending plan be different if his job did not provide insurance benefits?
(5 points)
25. What are benefits for Carlos saving money during the year for his major expenses such as his ski trip
and track season? (5 points)
Snapshot Reflection