good $ ense: money management for the independent teen

GOOD $ENSE: MONEY MANAGEMENT FOR THE

INDEPENDENT TEEN

Learning Objectives:

Understand the importance of managing your money

Understand the importance of discerning the difference between wants and needs

Understand how to create monthly budget

How Do You Decide Your Money Goals?

Needs vs. WantsValuesGoals

Needs vs. Wants

Maslow’s Hierarchy of

Needs

Religion Winning Sharing Convenience

CaringExcitement FamilyEnvironment

Hard work Music Money Sports

Education Truth Sex Community

Arts Leisure Freedom Play

Love Security Friendship

Fun Prestige Safety

Health Beauty Ownership

Your Values

What are Your Goals?

What do you hope to accomplish: in the next three months? in the next year? in the next 1-5 years or longer?

Goals continued

You will meet your basic needs

You will be able to meet your wants

You will be able to achieve your future dreams

LEARNING HOW TO PROPERLY HANDLE YOUR MONEY IS A HABIT DEVELOPED OVER TIME,

AND CAN LAST A LIFETIME!

7

What is Your Budget?

Practice Time: 8

This is Your Paycheck

Needs vs. Wants

Where are you going to live?

Mortgage = $1500/month

Room =$225/month

Apartment =$750/monthWith roommate =$425/month

How do you get where you need to be?

Paid $500Gas: $75/monthInsur: $50/month

Payment: $400/monthGas: $150/month Insur: $150/month

Fare = $90/month

Free. Though you may have to buy shoes more often.

Payment: $300/monthGas: $200/monthInsur: $100/month

Food Choices

Eating out:Breakfast: $5/dayLunch: $7/dayDinner: $12/day

Groceries for one person:$60/week

Bills, Bills, Bills

House: $75/monthApartment: $40/monthRoom: $25/month House:

$75/monthApartment: $40/monthRoom: $25/month

House: $20/monthApartment: $15/monthRoom: Free

Bills continued

$25/month

Triple Play -$150/monthDouble Play - $100/month

$75/month

$35/month

Unlimited - $100/month450 min - $55/month900 min - $75/month

The Extras

What’s Left?

Based on your expenses vs. income will you be able to save to accomplish your goals?

Where can you make cuts/sacrifices in order to be sure you have enough?

If an emergency arose (car breaks down, medical emergency, etc.) will you have money saved to cover it.