Income and Expense Statement Advanced Level

Similar documents
Income and Expense Statement Advanced Level

Income and Expense Statement

Monthly Expenses Worksheet

2. Analyze your spending. See how much you spend in each category. Notice any trends and look for expenses you can eliminate or cut back on.

Budgeting Your Money

Chapter 1: How to Make and Stick to a Budget

Estimating Monthly Income and Expenses Worksheet

Financial Needs Analysis Questionnaire (the involvement of ALL decision makers are required for an accurate assessment) Date: Time:

Income (Monthly) Current Projected Totals Amount Projected Inc % Inc % Total Outgoing $ - $ - Total Current Projected Surplus/Deficit $ - $ -

EBRI Databook on Employee Benefits. Chapter 11. Trends in Household Income and Expenditure for Older Americans

Money Management & Budgeting Skills Workshop

Unit Four: Financial Literacy Week Two: Managing Money

USE THIS GUIDE AND LEARN HOW TO

FINANCIAL BASICS FOR DVM STUDENTS

What is my financial future? My occupation. My yearly income. What does gross mean? Federal tax bracket % - Monthly gross income X.

Food Resource Management

2.2 Lifetime Loan Cost

CURRENT INCOME: PART 1

Personal Budget Project

MONEY. Of course, going to college means. Managing Your Money CHAPTER 3. Watching everyday spending

Budgeting for Success

Creating My Lifestyle Budget

A free publication provided by. Consolidated Credit Counseling Services, Inc.TM

Gaining and Maintaining Financial Stability Financial Documents and Workbook

You re On Your Own Checking Account Exercise

888-ADMIT-IT. Dealing with Money. Gambling is often about Money, Action, and Feelings

The Wise Wealth Planning Workshop Questionnaire

budget fixed expense flexible expense

CHRISTOPHER J. TAMMS 5 West Main Street Westerville, Ohio Phone: (614) Fax: (614)

Request to Modify Payment Plan

How Much Does School Cost? Academic Costs (Domestic) Tuition and Fees = $6,992 - $10,710. Books & Supplies = $700 - $1300. TOTAL = $7,692 $12,010/year

Smart Money I A TOOL FOR PLANNING YOUR PERSONAL BUDGET

DOMESTIC RELATIONS FINANCIAL AFFIDAVIT

Name Social Security#: Spouse: Social Security#: Address: City/State: Zip: Alternate mailing address: Home Phone: ( ) Work Phone: ( ) Cell: ( )

MAKE MONEY MAKE SENSE

, ) ) AFFIDAVIT OF FINANCIAL STANDING ) OF VS. ) (Name) ), ) Defendant. )

Family Living Account Book WASHINGTON STATE UNIVERSITY EXTENSION EB0544

Teacher's Guide. Lesson One. Making Decisions 04/09

Budgeting Your Way to a Better Tomorrow

Managing Your Money NET WORTH CASH FLOW CREATING A BUDGET

Financial Fitness Planner

COUNTY SUPERIOR COURT STATE OF GEORGIA DOMESTIC RELATIONS FINANCIAL AFFIDAVIT

Monthly Cash Flow Exercise

A tax is:,, and taxes account for. For many workers, are their single annual. expense, even more than, shelter, transportation,

Financial Aid and Scholarships. Budgeting 101: How to Make Your Financial Aid Last

BALANCED MONEY WORKBOOK

Spending Plans. Advanced Level

The Build-a- BudgeT Book

APPLICATION FOR FINANCIAL ASSISTANCE / SCHOOL YEAR

CHILD CARE QUESTIONNAIRE Service Code Business Owner s Name: Name of Business: Address of Business:

P.Y.F. Participant s Guide

This application is for ECE professionals working in a childcare facility. Please read through the entire application before you start.

Financial Disclosure Statement of Plaintiff Defendant

Goal Setting and Budgeting

TRUST RESPECT CUSTOMIZED

Algebra 3 Final Presentation!

1. Start tracking where your money goes: It s important to track everything. If you toss a dime into a fountain,

Like the federal government, individual consumers must manage their money. In this section, you will learn about budgeting and saving money.

PRIMARY APPLICATION ACT 91 MORTGAGE ASSISTANCE

DOMESTIC RELATIONS FINANCIAL AFFIDAVIT. 1. AFFIANT S NAME: Age Spouse s Name: Dates of Marriage: Date of Separation:

Budgeting: 101 Financial Literacy Program

Budgeting Essentials

Robert A Cowen Certified Public Accountant year end Tax planning for individuals

Gain Future Financial Clarity

What are your three most important financial goals? What are your three most important personal goals? GOALS

Name Date Period. Money Management for Teens

Eight Simple Steps for Balancing your Checkbook

Budgets and Cash Flows

Unit 6: Budgeting OBJECTIVES LESSON MATERIALS LESSON PLAN

FINANCIAL INFORMATION CHECK LIST o Real estate information: Address, purchase price and date purchased (Final HUD settlement form) Copies of Final HUD

STATE OF WISCONSIN CIRCUIT COURT COUNTY. Case No. Name. Birthdate Age Birthdate Age Employer. Employer

Money Management Calendar

Go to whelanclassroom.weebly.com and click on the Economics tab Next, download the Boot Camp Spreadsheet

My Budget as a 24 Year Old

7/12/ July 12, We have many tools at our disposal:

In the Superior Court of County, Georgia. In re (Child(ren)): ) ) ), Petitioner ) ) vs. ) Civil Action No. ), Respondent ) )

Tax Deductions and Forms Checklist This Checklist Covers Most Jobs

MyCaseInfo. Client Questionnaire

Analyzing the short and long-term effects of the inflows and outflows on the financial portfolio through the development of numerical projections.

The Connecticut Tech Act Project s Assistive Technology Loan Program

FAMILY LAW FINANCIAL AFFIDAVIT

The Massachusetts Homeownership Collaborative

Budgeting: Making the Most of Your Money

FORECLOSURE FRAUD NOTICE

Financial Literacy Money Trek Program Module 1: Workbook Introduction to Money Management AAUW California Financial Literacy Committee

Your Retirement Lifestyle Workbook

BUBDGET COUNSELING WORKSHEET INSTRUCTIONS

FIRST-TIME HOMEBUYER EDUCATION PROGRAM

The Art of Budgeting

DOMESTIC RELATIONS FINANCIAL AFFIDAVIT

) ) ) ) ) Income Statement

TAX ORGANIZER Page 3

In The First Judicial District Court of the State of Nevada In and for Carson City

In the Superior Court of County, Georgia. ), Petitioner ) ) vs. ) Civil Action No. ), Respondent ) ) DOMESTIC RELATIONS FINANCIAL AFFIDAVIT

and Financial Disclosure Statement of:

IN THE SUPERIOR COURT OF CHEROKEE COUNTY STATE OF GEORGIA DOMESTIC RELATIONS FINANCIAL AFFIDAVIT

Your money goals. Choosing a goal

Courtney Hatch Blauvelt Assistant Director of Financial Aid. Todd Hoffmann Budget Director

Building a Spending Plan: All Six Steps 1

PURCHASING, LEASING OR SELLING A HOME HOMEBUYER S FINANCIAL WORKSHEET

Transcription:

Income and Expense Statement Advanced Level

The Costs Add Up How much do you think each item would cost if purchased every day for one month? Item Average Cost of Item Approximate Cost Per Month if purchased every day 16 oz. soda $1.00 - $2.00 $30.00 - $60.00 16 oz. energy or sports drink $2.00 - $3.00 $60.00 - $90.00 Candy bar $0.75 - $1.25 $22.50 $37.50 16 oz. Latte or flavored coffee $2.50 -$3.50 $75.00 - $105.00 Approximate Cost Per Year if purchased every day $365.00 - $730.00 $730.00 - $1095.00 $273.75 - $456.25 $912.50 $1277.50 Take Charge Today August 2013 Income and Expense Statement Slide 2

The Income and Expense Statement 2.2.4.G1 Income and Expense Statement - lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year Take Charge Today August 2013 Income and Expense Statement Slide 3

Money Management Tools Statement of Financial Position Income & Expense Statement Spending Plan What is my financial position today? How have I managed my money in the past? What is my future money management plan? Tells you where your money came from and where it went Take Charge Today August 2013 Income and Expense Statement Slide 4

How can an Income and Expense Statement help you manage money? 2.2.4.G1 Make changes to increase net worth Evaluate past financial decisions Make changes to reach goals Improve financial well-being Take Charge Today August 2013 Income and Expense Statement Slide 5

Three Components Income Expenses Net gain or net loss Take Charge Today August 2013 Income and Expense Statement Slide 6

What is Income? Income money received Take Charge Today August 2013 Income and Expense Statement Slide 7

Income Categories Earned income any money earned from work Unearned income income received from sources other than employment Received Income from Government Programs offer a form of income, usually temporary What income category is represented on your card? Take Charge Today August 2013 Income and Expense Statement Slide 8

Earned Income Wages or salary before deductions Any money earned from working for pay Commissions/ tips/bonuses Tax refunds Take Charge Today August 2013 Income and Expense Statement Slide 9

Gross Income vs. Net Income Evan earns $1600.00 before taxes Evan s paycheck is worth $1277.60 This is his gross income Recorded in the income section of the statement Employer Address City, State Zip Code Evan Jones This is his net income One-thousand seventy seven dollars and 60/100 Net Income $1277.60 Employer Take Charge Today August 2013 Income and Expense Statement Slide 10

Unearned Income 2.2.4.G1 Interest earned during time period Income received from sources other than employment Money earned from investment during time period Sales of assets Money from savings and investments to help pay expenses during time period Take Charge Today August 2013 Income and Expense Statement Slide 11 Using savings and asset sales are not sources of income you can rely upon in the next time period!

Unearned Income Scholarships/ grants from nongovernment sources Income received from sources other than employment Money from others Child support Take Charge Today August 2013 Income and Expense Statement Slide 12

Received Income from Government Programs May offer a form of income, usually temporary Government programs such as workers compensation Scholarships/grants from government sources 2.2.4.G1 Place a checkmark next to income that you have Take Charge Today August 2013 Income and Expense Statement Slide 13

What are Expenses? Expenses money spent Take Charge Today August 2013 Income and Expense Statement Slide 14

Expense Categories Taxes Saving and Investing Insurance Housing Transportation Food Other Expenses will vary for every person Take Charge Today August 2013 Income and Expense Statement Slide 15

Taxes Deductions often taken from paychecks Includes income and payroll tax Numbers may be found on the paycheck stub Taxes included in other expense categories Property taxes such as housing and transportation Sales and excise taxes are included within the cost of other expenses Take Charge Today August 2013 Income and Expense Statement Slide 16

Saving and Investing Present Future Saving and Investing Includes any portion of income that is saved or invested for future use Retirement investments may be deducted directly from a paycheck Take Charge Today August 2013 Income and Expense Statement Slide 17

Why can savings and investments be both an income and expense? 2.2.4.G1 Using money from savings or investments to pay for expenses during the time period Adding money to savings or investments for future use Take Charge Today August 2013 Income and Expense Statement Slide 18

Insurance Health Insurance - a product that transfers risk from an individual to an insurance company or organization Property and liability (home, automobile) Life Disability Take Charge Today August 2013 Income and Expense Statement Slide 19

Four on the Floor If you receive a paper, add at least one expense to any of the categories that wasn t already recorded What expenses may be included in the housing category? What expenses may be included in the food category? What expenses may be included in the transportation category? What expenses may be included in the other category? Take Charge Today August 2013 Income and Expense Statement Slide 20

What expenses were recorded in the housing category? 2.2.4.G1 Housing payment (rent or mortgage) Utilities Property taxes Maintenance Household furnishings Home/renter s insurance (included in insurance) Take Charge Today August 2013 Income and Expense Statement Slide 21

What expenses were recorded in the transportation category? 2.2.4.G1 Personal automobile: Loan payment Fuel License and registration Repairs and maintenance Insurance (included in insurance category) Public transportation fees Take Charge Today August 2013 Income and Expense Statement Slide 22

What expenses were recorded in the food category? 2.2.4.G1 Groceries Meals eaten at restaurants Snacks away from home Kitchen supplies Take Charge Today August 2013 Income and Expense Statement Slide 23

What expenses were recorded in the other category? Family member care Communication and computers Medical costs not covered by insurance Clothing and personal care Child care Cell phone Medical care Shampoo Allowances Internet service Dental care Toothpaste Care for other dependents Cable/satellite television Medications Haircuts Take Charge Today August 2013 Income and Expense Statement Slide 24

What expenses were recorded in the other category? Educational expenses Pet care Entertainment Credit costs Tuition Food Movies Credit cards Private lessons/ tutoring Veterinary costs Music Student loans Supplies Boarding Gifts and charitable contributions Take Charge Today August 2013 Income and Expense Statement Slide 25

Make the Income and Expense Statement your own! 2.2.4.G1 Customize the categories to represent all income and expenses you have Specific categories may be more effective Place a checkmark next to expenses that you have Take Charge Today August 2013 Income and Expense Statement Slide 26

Find a tracking method that works for you 2.2.4.G1 Record in writing Smartphone Keep receipts Depository institution account statements Money management computer software program A written system is more effective than a mental system like Evan you can trick yourself into thinking you spend less than you do! Take Charge Today August 2013 Income and Expense Statement Slide 27

Net Gain or Net Loss Income Expenses Net gain Net loss Net Gain or Net Loss Goal is to have income (from sources other than drawing down savings or selling assets) greater than expenses. Take Charge Today August 2013 Income and Expense Statement Slide 28

Net Gain Use that money for savings or other expenses Net Loss Increase income and/or decrease expenses Statement of Financial Position Income & Expense Statement Spending Plan A spending plan will help you plan your spending What is my financial position today? How have I managed my money in the past? What is my future money management plan? Take Charge Today August 2013 Income and Expense Statement Slide 29

Summary Tells you where your money is coming from and where it is going Three components: income, expenses, and net gain/loss Use a tracking method that works best for you Customize income and expense categories Take Charge Today August 2013 Income and Expense Statement Slide 30

Meet Evan Paid once per month Puts enough money in his checking account to cover his expenses for the month He runs out of money each month before all of his expenses are paid Take Charge Today August 2013 Income and Expense Statement Slide 31

How does Evan think he is spending his money? 2.2.4.G1 Evan created a list of all of his expenses First allocates money to his savings account Estimates that his remaining expenses will be no more than $1000/month: But he runs out of money before the end of each month Expense Amount Rent and Utilities $500 Health insurance $100 Renter s Insurance $10 Car insurance $40 Gas $100 Groceries $100 Cell phone $70 Personal care $30 Entertainment $50 Total $1000 Take Charge Today August 2013 Income and Expense Statement Slide 32

Are you sure there isn t anything else you spend your money on, Evan? 2.2.4.G1 Well I do purchase a cup of drip coffee almost every morning but that is only $1.00! And I usually eat lunch at a restaurant about once per week but I didn t think that added up to much money. $1.00/ day $30/ month $365/ year Lunch at $8.00/ week $32/ month $416/ year Evan wasn t accounting for $62.00 per month! Take Charge Today August 2013 Income and Expense Statement Slide 33

Help Evan Create an Income and Expense Statement 2.2.4.G1 Create an Income and Expense Statement for Evan for the month of March Evan has summarized the information from his March paycheck This is Evan s only source of income Gross Income $1600.00 Federal Income Tax $200.00 Social Security $99.20 Medicare $23.20 Net Income $1277.60 Take Charge Today August 2013 Income and Expense Statement Slide 34

Evan s Expenses Used an app on his smartphone to track his expenses 3/1 Automatic transfer to savings account $255.52 3/1 $400 check for rent payment 3/1 Health insurance $100 3/2 Withdrew $20 in cash to purchase daily coffee 3/3 Lunch $6.50 3/3 - Hockey game admission - $10 3/5 Purchased gas for $40 3/6 Movie theater ticket $7.50 3/7 Groceries $52 Take Charge Today August 2013 Income and Expense Statement Slide 35

Evan s Expenses 3/10 Lunch $8 3/12 Basketball game admission $15 3/15 Cell phone payment $70 3/15 Car insurance payment $40 3/15 Renter s insurance payment $10 3/16 Haircut $15 3/17 Purchased gas for $40 3/20 Lunch $7.50 3/25 Bowling with friends $15 3/27 Groceries $38 3/27 Concert ticket - $45 3/28 Purchased gas for $40 3/31 Electricity payment $50 3/31 Water payment $50 Take Charge Today August 2013 Income and Expense Statement Slide 36