Learning About Money SP series. The difference between needs and wants

Learning About Money  SP series

Hand Poster/Overhead Masters

In this section are 14 hand poster/overhead masters that may be duplicated for educational use.  This series  supports the concepts found in the Spending Plansmoduleof this resource.  These masters make good hand posters, handouts for Stage Three, and some are suitable for Stage Two readers.  They can also be made into overheads for presentations.  

Review the Learning About Money Video Scripts for background information on the topics covered.  See the segment, Drawing Up A Spending Plan, for further information.  

This segment is an excellent visual tool for imparting different ways that learners can:

•  Understand why a spending plan is needed

•  Determine how financial goals are set

•  Be able to know the difference between needs and wants

•  Identify income, and know the difference between gross and net income

•  Learn four ways to track spending, as well as

•  Follow the steps in how to make and balance a spending plan.

These are the hand poster/overhead masters that follow in this file—each has a number, so you can identify the order—note that the page number is given following the dash.  Or, you can follow the links below.

SP100—2        Discussion Starters

(See page 2 of the education module for discussion topics and ideas.)

SP110—3        Why do I need a spending plan?            

SP120—4        Setting financial goals

SP130—5        The difference between needs and wants

SP140—6        Identify sources of income

SP150—7        Tracking your spending

SP151—8        The receipt method

SP152—9         The envelope method

SP153—10       The transaction record book 

SP154—11       The account book method

SP160—12      Drawing up a spending plan

SP161—13       Spending categories

SP162—14       The balancing act

SP170—15      Do you overspend?

Discussion Starters

Learning About Money   SP100–2

What do you think about . . .

♦           Why do people have problems         managing their money?

♦   What are some of the expenses we                need to plan ahead for?

♦   How can people avoid buying on        impulse?

♦   How can you set up a spending plan?

♦   What are some of the ways you can    track your spending?

♦   Besides money—what other resources    do you have to use    for the benefit of    your family?

Learning About Money   SP110—3

Why do I need a spending plan?

   can help you . . .

•  buy what you need and want within   your income

•  give you a record of where your   money goes

•  cut down on worry over money

•  give you a chance to talk with      your family about the future.

A spending plan can also help you see if  a financial problem lies ahead.

Learning About Money   SP120—4  Setting financial goals

    GOAL$  

To set a financial goal          decide on the following:

•  total cost of the goal,

•  the target date, and

•  the cost per month.    

Now set a goal for each of the following:

immediate (within 2 months)

short-term (3 - 12 months)

long-term (1 - 5 years)

Learning About Money   SP130—5

Knowing the difference between needs and wants

NEEDSare things you       spend your money on that are       essential to everyday life . . .

Fixed expenses such as:

•  housing and utilities

•  food and household supplies

•  medical and health needs, and • a winter coat, boots and hat!

where as . . .

WANTSare things we desire, but are not       essential.  The “nice to have” things in life.

Flexible expenses such as:

•  movies and eating out

•  a vacation, 

•  expensive gifts,  • donations, or • a cell phone.

Learning About Money   SP140—6

Identify sources of income

                                                                         You may have income from                                                                    

different sources such as . . .                                                                

•  work    

•  Employment Insurance

•  Child Tax Benefit • social programs, or • pensions.

Gross income—is the total income you have  before deductions.

Net income—is the amount you have to spend after all deductions.

Deductions from your gross income can be things like:

•  Income tax

•  EI—Employment Insurance

•  CPP—Canada Pension Plan

•  Pension plan contribution • Extended health insurance, or • Union dues, etc.

Learning About Money   SP150—7

Tracking your spending

The four methods are . . .

      Receipt method

•  a receipt for every expense

•  sort and total each week

•  record and get a monthly total for                     each spending category. 

       Envelope method

•  a cash management system

•  use for some spending categories      each week  e.g. food, bus fare etc.

Transaction record book

•  keeps track of all banking transactions

•  can use different accounts for            different purposes.

Account book method

•  gives a more detailed record of where your money is spent