My Financial Plan Step A: Monthly Income Support from parents or others Scholarships Loans Investments Earned income Total Monthly Income (A) Step B: Necessary Fixed Monthly Expenses Housing (mortgage or rent) Transportation (car payment, insurance, bus pass, car pool) Taxes (federal and state income, Social Security, Medicare) Insurance (house, health, and life) Child care Tuition Bank fees Debt payment Savings and investments Necessary Fixed Monthly Expenses (B) Step C: Necessary Variable Monthly Expenses Food and personal care items Clothing Telephone Gas and electric Water Transportation (car repairs, maintenance, gasoline) Laundry and dry cleaning Doctor and medicine Books and software Computer/Internet access Total Necessary Variable Monthly Expenses (C) Step D: Optional Fixed and Variable Monthly Expenses Eating out (including coffee snacks lunches) Amount Balance Discussion #2 A+ 18 18 This weeks discussion will focus on money management and the role it plays in your future: 1. Before you begin this discussion, you will need to take some time to create a personal financial plan. Copy from page 8 the budgeting expense form, and use as many categories that apply to you in Steps A/B/C/D (you may do this on binder paper, or on excel/word). Determine your totals for each step. If certain areas do not apply to your expenses or there are other areas you spend on not already included on the worksheet, feel free to leave blank or edit. 2. Question: What areas are you overspending in, and where are you on track? Share with the class the areas that you manage well in your budget & why its easy to you. 3. Next, Read Pages 6-14, and share in this discussion 2 areas (from Money flowing in & from Money flowing out) that you need to work on when it comes to personal money management and budgeting. 4. Look at the chart on page 6, "Salaries and Unemployment Rates" survey from 2013 (I know that's outdated, we'll use it as an example). Visualize yourself earning the median salary for the level of education that you want to achieve. (Keep in mind this was conducted 10 years ago and salaries have risen). They say that the more you visualize something occurring in your life, the probability of it happening is higher. What will be your motivation to achieve this in your future? and How will you get there? Share your thoughts with the class. 5. Don't forget: Each canvas discussion will be worth 10 points, totaling up to 100 points possible. (If you have any questions feel free to email me). IMPORTANT: Try your best to add/contribute a meaningful discussion post (I'm asking that you expand/elaborate and describe). 10 points = Your post + 2 comments to your peers within the discussion timeframe 8 points = Your post + 1 peer comment only within the discussion timeframe 6 points = Your post only within the discussion timeframe Mrs. Discua 6 Chapter 1 Getting On Course to Your Success Level of Education Median Earnings Unemployment Rate Less than a high school diploma $24,544 11.0% High school diploma, no college $33,852 7.5% Some college, no degree $37,804 7.0% Associate degree $40,404 5.4% Bachelor's degree $57,616 4.0% Master's degree $69,108 3.4% Doctoral degree $84,396 2.2% Professional degree $89,128 2.3% FIGURE 1.3 Yearly Salaries and Unemployment Rates by Levels of Education. (25 and older)