Presentation on theme: "Learning Objective # 1 Recognize relationships among financial documents and money management activities."— Presentation transcript:
1 Learning Objective # 1Recognize relationships among financial documents and money management activities.
2 Planning for Successful Money Mangement LO#1Planning for Successful Money MangementMoney Management: Day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security.Daily spending and saving decisions are at the centre of financial planningCoordinate these decisions with your needs, goals and personal situationMaintaining financial records and planning your spending are essential to success
3 Opportunity Costs & Money Management LO#1Opportunity Costs & Money ManagementSpending money reduces the amount you can save and invest.Saving and investing reduces the amount you can spend now.Buying on credit ties up future income.Using savings for purchases results in lost interest earnings - savings can’t be used for other purposes.Comparison shopping can save you money but uses up valuable time
4 Major Money Management Activities LO#1Major Money Management ActivitiesStore and maintain personal financial records and documentsCreate personal financial statements (balance sheets and cash flow statements or income and outflowCreate and implement a plan for spending and saving (budgeting)