Ask the class to look at the book cover on the opposite page and begin with a discussion about spending plans

Spending Plans

Warm Up:

Ask the class to look at the book cover on the opposite page and begin with a discussion about spending plans. Start with a general discussion about some, or all of the following topics. You may use the hand poster for visual aid.

Access: Discussion Starters SP100 – 2/Hand Posters.pdf/ Bank of Information

·  How can you explain someone titling a book: “Developing a Spending Plan—A Guide for Financial Success?”

·  Why do people sometimes have problems managing their money? Discussion points may include:

o  Overspending

o  Limited income

o  Too much debt

o  Not planning for their spending.

·  What are some of the expenses you need to plan ahead for? Discussion points may include:

o  Irregular expenses that come up from time to time

o  Annual expenses or dues

o  Holidays and birthdays etc.

o  Savings for the future

·  How can people avoid spending on impulse? Discussion points may include:

o  Make a shopping list and stick to it!

o  Do not carry a credit card when “window shopping”

o  Stay away from sales, unless you planned a purchase.

·  How can you set up a spending plan? Discussion points may include:

o  Write down your income and expenses and then keep track of where the money goes.

o  Have a regular time to plan a budget and update your banking records, etc.

·  What are some of the ways you can track your spending? Discussion points may include:

o  Keep receipts

o  Use the envelope method for cash expenses

o  Use a transaction record book from your bank

o  Track all expenses in an accounting book, or notebook.

Objective objectives:

Start introducing objectives of the class to the students and ask them to prolong the list.

After completing this activity you will:

·  Know the need of a spending plan;

·  Be able to determine how financial goals are set;

·  Know the difference between needs and wants;

·  Learn different ways to track spending.

Ask students which of the objectives interests them most and if you had an expert in class, what questions would they ask about spending plans?

Project work:

Explain that the class will now participate in a learning exercise about spending plans. Based on the information they will get from information bank and after fulfilling the necessary tutorials, the students will have the choice of completing one of the three types of projects below:

1)  Create a written instruction manual: “How to develop an efficient spending plan?”

2)  Create a video instruction manual on “How to develop an efficient spending plan?”

3)  Create an on-line instruction manual: “How to develop an efficient spending plan?”

Before getting down to project work have students explain their answers to the following questions:

·  What do you know about the components of a well written instruction manual?

·  What do you know about the components of an effective instruction video?

·  What do you know about the components of an efficient on-line instruction manual?

Info: Manual - a book giving instructions or information

Discuss with the class your specifications and expectations for the projects, including deadlines, format and criteria for grading, their manuals.

Explain to students that most of the information for their projects should come from reading the bank of information and fulfilling tutorials. Divide the class into three groups. Assign each group a different one of the following abstracts and related websites to read:

On the approaches to a spending plan. - : SP (110 – 3) – SP (154 – 11)/Hand Posters.pdf/ Bank of Information folder;

Budgeting process http://militaryfinance.umuc.edu/planning/fin_5_step_budget.html or The Five-Step Budget Process.doc/Bank of information folder;

Spending planner I am spending planner.pdf/Bank of information

After their reading, have the students explain their answers to the following questions:

·  What information did you find on the pages you looked at and websites you read?

·  Discuss one important thing that you learned about spending plans that you didn’t know before.