	Money IN/Money OUT INSTRUCTORS' GUIDE (NOTE: If teaching a four-session series, use this guide as your final lesson, adding handouts from Guides 4 and 6.)

Session Five: Setting Specific Goals

GOAL: To motivate participants to set up a record-keeping system and to develop a plan for reaching their debt reduction and increased savings goals.

Learner Objectives

Participants will be able to:

Set up a record keeping system
Use spending records to plan spending
Recognize potential ways to reduce spending
Understand how to get additional financial counseling (if this is the final session)

Materials Needed

5-a Two 52-card decks of playing cards
5-b Small prizes (candy, gum, etc.)
5-c Examples of home record-keeping systems: shoe box, basket,large envelopes, accordion folder, file box, loose-leaf notebook, ledger, software
5-d Sample Spending Record transparency or handouts (not included)
5-e Live Beneath Your Means handouts
5-f Spending Plan handouts
5-g Sample Spending Plan transparency or handouts (not included)
2-h Spending Record handouts
5-h The Top 10 Reasons... handouts
3-e Confidential Memo (extra copies for those who forget to bring it)
Overhead projector if using transparencies
Pens or Pencils

If this is the fourth and final session, you need the following items from guides 4 and 6:

4-a & 4-b How Much are You Worth? handouts
4-c Personal Property Inventory handouts
6-c Who Can Help? handouts
Letter-size envelopes, pre-stuffed with the 6-month and 12- month surveys and envelopes pre-addressed to the Extension Center (6-a,6-b,6-c)
6-e Who Can Help? handouts
6-g Evaluation Form handouts

1.Getting Started.

Divide participants into two groups. If possible, have groups seated or standing around a table. Give each group a deck of cards (5-a). (One deck should be stacked in numerical order by suits, suits alternated red/black/red/black. The other deck should be thoroughly shuffled.)

Without sorting or changing the order of the cards, have each group arrange the cards in four rows of 13 cards, face up on the table.

Randomly request a specific playing card, such as Jack of diamonds, Ace of spades, Two of clubs, Six of hearts, etc. Team members take turns finding the requested card, racing to see which team's player finds the requested card first. Award a small prize (5-b) to the first person finding the card requested. (The team with the organized deck should be much quicker. Explain that one team had a "stacked" deck and give everyone a piece of candy or gum.)

2. Get Organized.

Just as having the deck of cards organized made the game faster, organizing your records will make keeping up with your money easier.

Show ways to keep papers organized (5-c):

a box or basket to hold papers until they can be sorted and organized--kept in a convenient place
large envelopes labeled with each regular expense category
an accordion folder or small portable file box with labeled folders
(software examples, if appropriate)

There are three major factors in getting organized:

PERSON. Decide on one person to be the record keeper - even if this is a rotating task for a given period of time.

PLACE. Designate a place for all receipts and important papers to be kept until they can be filed.

SCHEDULE. Set up a schedule for filing the papers and paying the bills.

Weekly - sort receipts and bills. Enter expenses on your spending record and pay bills at least five days before due (to avoid late payment fees for slow delivery).
Monthly - look at what you earned and where you spent it. Estimate what you will make and spend during the next month. Reconcile your checkbook register against the bank statement so you are certain about your balance.
Yearly - clean out those envelopes or folders-tax time is a good time to do this! Keep receipts for items that are under warranty until the warranty expires. If an item is paid for and you have gotten a reasonable amount of use from it, throw away the receipt. If a receipt or canceled check is related to your income tax return, keep it with your tax return for three years.

3. The next step.

(If this is the fourth session, participants are almost ready to do a spending plan-they will need the records for an additional week. If this is the fifth session, they should have the information to complete a spending plan for the coming month.)

You now need to account for all of your family income. On page 5 of Managing Your Money (1-g) is a chart for listing regular income that you will base your plan on.

Once you have completed your Monthly Spending Record (2-h), total the various spending categories. (Show a sample completed spending record (5-d). Compare your spending with your income. Do you spend more than you make? If your income is greater than expenses, what options do you have for the money? ("Pay off debt" or "increase savings" are the answers you want to hear.)

Look at categories other than basic needs first -recreation, personal items-and ask yourself if the totals are as small as they might be. Can you identify unnecessary purchases? Perhaps these are impulse spending areas. Look at the more basic needs to see if reductions are possible by making less expensive choices. Distribute copies of Live Beneath Your Means (5-e) and invite additional suggestions as time permits.

Also, examine your Credit Tracking Record (2-i). Can you pay for the amounts charged in this month or did your debt load grow too much?

Now think about how your spending could be different in the coming month from last month's Spending Record (2-h), and estimate a practical amount to spend in each of the categories. On the Spending Plan (5-f) form, enter in pencil how you plan to spend next month's income in the same categories. Prepare and show a sample completed Spending Plan (5-g), using data that are typical for your area and audience.

In addition to the Spending Plan (2-f) form is a new blank Spending Record (2-h) for you to complete during the coming month. At the end of next month, compare your spending plan and your actual expenses (from your spending record). It is okay if the two forms do not match exactly. A plan is not set in concrete; its purpose is to provide a guide to help you set reasonable limits on spending and credit and to help you save.

4. Challenges.

Review your spending record thoughtfully and make a spending plan for the coming month. Keep a record of your spending during the month so that you will have both a record and a plan for the same month to compare. Continue doing a monthly spending record and plan for another two to three months, and then make a year's plan. On page 9 of Managing Your Money (1-g) is a spending plan for a year. A yearly plan allows you to consider expenses that are irregular or unpredictable, such as car insurance or health care, so you can set aside funds for these expenses. You can get a better idea of how much to set aside each month when you think ahead about things that are paid for quarterly, every six months, annually or once in awhile, like gifts and holidays.

5. Summary.

Many people feel burdened with record keeping and budgeting. It may seem like a "dirty job," but it is a reality everyone must deal with! Share The TOP 10 Reasons....(5-h)

6. Preview.

At the next session we will take a closer look at credit reports and other services you will find helpful as you begin to control your money. If you have received your personal credit report, review it and bring it to next week's session. (You will not be asked to show it to anyone.) Be sure to complete your Confidential Self Memo (3-e) and bring it with you to the next session. (Provide additional copies if some participants missed getting one or have misplaced theirs.)

If this is the 4th and final session:

Introduce Net Worth from Session Four.

Briefly explain what a net worth statement is and that it measures progress toward financial goals. Distribute copies of How Much are You Worth? (4-a & 4-b) and Personal Property Inventory (4-c). Encourage participants to complete a net worth statement in the next few days and again in six months and one year. If participants keep careful records and realistically plan for spending and saving, the net worth "bottom line" should increase.

Present Session Five in abbreviated form.

Present wrap-up from Session Six.

Distribute return envelopes (6-a). At a previous session, you received a Confidential Memo (3-e) to record your plans for increasing savings and reducing debt. [If someone forgot, provide another copy of 3-e.] You are to keep your copy of this memo, and make two additional copies now. Put one in each envelope I'm giving you (6-a) and address both envelopes to yourself. Note that one envelope has a 6-month survey and envelope for returning it. The other envelope has a 12-month survey and a net worth statement--and envelope for returning them. Please seal both envelopes now and return them to me. When you receive the 6-month envelope, please fill in the survey and return it promptly. When you receive the 12-month envelope, please complete a new net worth statement for yourself--and then complete the survey and return it to me. [Collect the 6-month envelopes, and then collect the 12-month envelopes. Label each group with the date you are to mail them.]

Conclusion. Answer any questions. Remind participants that one of the best services available to help with personal finances is the Consumer Credit Counseling Service. It is a local non-profit organization supported by banks, consumer finance companies, credit unions, merchants and others. Distribute copies of Who Can Help? (6-e) Summarize educational services available through Cooperative Extension.

Evaluate. If time permits, ask participants to share orally what they have learned or behavior they have changed from these sessions and what they would like to know more about. But make time for participants to complete the Evaluation Form (6-g). Point out that they are asked to include the dollar amount for their debt reduction and savings goals, and to fold the form before turning it in. These forms are NOT to be signed, so no one will know your dollar goals. It is important for me to be able to report the total goals of our entire group, and the total achievements in one year without revealing any personal information. I wish each of you good luck in your efforts to reach goals, and look forward to hearing from you about your progress.

Other Resources

Return to Money IN/Money OUT Home Page

This page (http://www.ces.ncsu.edu/plymouth/mimo/session5net.html) was created by Jan Lloyd (Extension Area Specialist, Family & Consumer Sciences), Michele Simpson(Program Assistant, Family & Consumer Sciences), and Bruce A. Emmons(Area Specialized Agent, Information Management).

Date Created April 17, 2000.
Last revised on June 27, 2001.

Published by North Carolina Cooperative Extension Service

Distributed in furtherance of the Acts of Congress of May 8 and June 30, 1914. Employment and program opportunities are offered to all people regardless of race, color, national origin, sex, age, or disability. North Carolina State University at Raleigh, North Carolina A&T State University, U.S. Department of Agriculture, and local governments cooperating.