Car Financial Agreements by pnd13583


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									Dear Parent,

This financial notebook is designed to be a template for a notebook you can create to teach your
teenagers sound money management principles. Once downloaded you can adjust, change, or
delete any pages you want to. Our family assembled the notebook for each teen in a three-ring
binder with the cover sheet slipped in the see-through binder cover.

Here is a brief explanation of the following pages:

Personal Money Matters: This helps define common terms as well as laying a foundation for good
money management principles.

Family Money Matters: This defines how money responsibilities will work within the family unit. This
will definitely be a part of the notebook you will want to agree upon as parents first. Once the family
money matters are determined, presenting them in writing is very helpful in establishing guidelines
and boundaries.

Budget Allocation: This notebook operates off the principle of living on a budget rather than a
paycheck. When teens begin to work at their first job, you can help them manage their money by
using a budget. This will establish healthy lifetime money management routines. Adjust these
allocations to meet your family priorities.

Paycheck Worksheet: If you adjust any allocations on the Budget allocation, you’ll want to change
them on the paycheck worksheet. This is a page that you might want to copy—they will need a new
page for each paycheck. This helps them break down their paycheck into what needs to go into
savings and what they get to keep as cash. Once the money is in it’s correct place, the sheet can be

Individual Account Page: If your teen is using one savings account to save for multiple purposes,
they will need an account page for each purpose (i.e. Christmas, Future Events, Auto Expenses, etc).

Financial Request Form: You might want to copy these and keep them in a common place for all
family members to use. If a child needs a check for something at school or for a deposit on a church
event, they can fill out the form and give it to you. If your teen owes you for something, this can be a
formal way to request payment (i.e. car insurance, car repairs, etc).

In addition to what you find in this notebook, many parents choose to do a formal financial contract
(similar to the relationship contract and other contracts we talk about in Got Teens). This would spell
out your financial agreements based up on the notebook and would also document what
consequences would take place if the agreements are broken.

I hope this is as helpful to you as it has been for our family!

Jill Savage
                                       This notebook is copyrighted. Permission is granted only for use in your family.

Financial Notebook

     belongs to

                                  Personal Money Matters


Earning Power: the amount you are able to earn where you are employed. This is
figured by both hourly pay or salary as well as the number of hours you are able to work.

Also to be considered is the value of who you work with (Are the relationships
enjoyable? Is the boss easy to work for? Do they work well with your school schedule?)

PayDay Priorities:
    Tithe—(10% to God)
    Subdivide your paycheck into your saving/spending accounts and sub accounts.
    Take 15 minutes on every payday to sit down and manage your money which
     includes balancing your accounts, checking your account ledger, and paying any
    Whichever payday follows the receipt of your bank statement, take 30 minutes to
     also balance your account against your statement.

Tip: Keep your money management documents organized into folders, hanging files, etc, that are located
at your fingertips. This will help you be more likely to use them at a moment’s notice.


Spending Log:
    Once a year, do a one-month spending log. Carry a small notebook with you
     everywhere you go and record every penny you spend for one month. This will
     help you know where to establish or adjust your budget to reflect your spending.
     It will also help you know where you need to cut back on your spending in certain
     areas. We will do this as a family in January each year.

    Live off your budget, not off your paycheck.
    Don’t borrow from the next paycheck – either mentally or with credit. Live within
     your means. If you don’t have enough for your spending needs or wants you need
     to either decrease your spending in some areas or somehow increase your income.
                               Family Money Matters

Your job: Your primary job is to get good grades at school. A’s and B’s are the
standard and what is expected. When you receive a C on a paper, test, or project that
is a red flag that you need to either:
     Study differently.
     Ask the teacher for help.
     Ask someone else for help.
Even if a teacher isn’t much help, or isn’t your favorite, the fact that you are showing
interest in your grade goes a long way in building a sense of trust between you and the

Your second job: Your second job is what you do on the nights and weekends.
Guidelines for hours during the school year:
    In High School: no more than 10-15 hours/week
    In College: no more than 10-12 hours/week. (If you find a job that is primarily a
      Saturday job, you might be able to increase that to 15 hours/week)
Guidelines for hours during the summer:
    In High School or College: 20-40 hours/week.

Your financial responsibilities during the school year:
    Gas for your car. Paid by cash. Exceptions are listed below.
    All entertainment desires: movies, going out to eat with friends, video rentals,
      prom (including tux, dinner, pictures, etc. – start saving!), etc.
    25% of your car insurance
    20% of car repairs
    25% of special events (i.e. youth retreats, ski trips, etc)
    Keeping your checkbook and savings accounts properly managed.
    In college: basic living expenses (i.e. misc. runs for shampoo, soap, etc.)

What mom and dad will pay for while you are in high school or college:
   Family entertainment (i.e. when we all go to a movie together, renting videos as a
     family, going bowling as a family, going out to eat as a family, etc.)
   75% of your car insurance
   80% of car repairs
   Gas for your car:
           ~ High School: Mom and Dad will fill your gas tank every other Sunday for
           driving to school.
            ~ College: Mom and Dad will transfer money to your account to pay for a
            tank of gas any time you come home or desire to visit grandparents

Your responsibilities for Higher Education:
    Maintain an A/B GPA to keep any scholarships in place.
    Earn $2000 each summer for college tuition – this is payable to mom and dad each
    Work approximately 10 hours/week (work-study) to pay for your basic
      entertainment and living expenses.
    School tuition/loans, as agreed on, payable after graduation.
    Be wise with your money – make choices for saving more often than for spending.
    Purchase books on E-bay or in some discounted way.

Mom   and Dad’s responsibilities for Higher Education:
      School tuition/loan (as agreed upon)
      Living expenses as listed above
      Books
      Health care

Other guidelines:
   Large-scale trips, road trips, vacations (outside of family vacations), etc. will be
     considered only if you have the extra $500-$1000 needed for the trip over and
     above your $2000 you need to earn each summer.
   One spring break trip to a special agreed upon location (grandparent’s or friend’s
     condo…) during your 4 years of college can be considered, however the money
     ($500) will need to be in your hands before you can make the request.
   If you do not save the $2000 during the summer, you will have made the decision
     to go to the local community college rather than the college of your choice. If
     you lose scholarship monies by getting a low GPA, you may very well have made
     that decision as well unless you can make up the monies lost somehow.
   As you enter into adulthood, your responsibilities do increase. Your choices do
     make a difference. Attention to the little details will make a difference when it
     comes to grades, jobs, money, and relationships.
   Learn the value of sacrifice. We go without today so that we can have and do
     tomorrow. This is also called ―delayed gratification‖. ―I choose not to go to the
      concert so I won’t deplete my spending money until the next paycheck. Then when
      someone asks me to go bowling, I have the money to do it.‖
                                  Budget Allocation

TITHE (Take to church)
10% God

SAVINGS (Put in money market or savings account)
10% Long Term Investment Savings (retirement/investment)
5%  Car, College, or Housing Down Payment

BUDGET (Put in savings account)
5%  Christmas
10% Future Events (concerts, prom, etc)
10% Auto Expenses (repairs, oil changes, etc)
5%  Clothing

20% Gas
25% Entertainment and Spending

                                  Budget Principles

      Shop or spend for larger items out of your account, not from your paycheck.

      Never completely empty a budget account.

      Use cash for everything.

      Never use a credit card for any purchases. If you don’t have the cash, you don’t
       make the purchase.

      Use a loan only for a house or car. If you save earnestly, it is even possible to pay
       cash for a car as an adult.

      Keep very good records. Balance your checking account once a month.
                            Paycheck Worksheet
                           Date _______________

Amount of paycheck:              $______________________

Tithe (10%)                      $______________________ (take to church)

Savings (10%)                    $_______________________         (deposit in Savings/Money Market acct)

Future Car, College, Housing (5%) $_______________________ (deposit in Savings/Money Market acct)

Christmas (5%)                    $_______________________ (deposit in savings)

Future Events (10%)               $_______________________ (deposit in savings)

Auto Expenses (10%)               $_______________________ (deposit in savings)

Clothing (5%)                     $_______________________ (deposit in savings)

Gas (20%)                         $_______________________ (cash)

Entertainment/Spending (25%)      $_______________________ (cash)
                     INDIVIDUAL ACCOUNT PAGE

_________________________      $_____________________________________
   ACCOUNT CATEGORY              Regular Deposit (Monthly or each paycheck)

                        Financial Request Form:

   o   Mom and Dad
   o   (Child’s name)
   o   (Child’s name)
   o   (Child’s name)

Request from:
   o Mom and Dad
   o (Child’s name)
   o (Child’s name)
   o (Child’s name)

$_______________ for _____________________________________

Date requested ____________    Date completed ___________

                        Financial Request Form:

   o   Mom and Dad
   o   (Child’s name)
   o   (Child’s name)
   o   (Child’s name)

Request from:
   o Mom and Dad
   o (Child’s name)
   o (Child’s name)
   o (Child’s name)

$_______________ for _____________________________________

Date requested ____________    Date completed ___________

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