3What kinds of financial records do you keep? Brainstorm in your notes
4Money ManagementDay-to-day financial activities necessary to get the most from your money.Money trade-offs
5Financial DocumentsFirst step in effective money management is to organize your financial documents.Benefits:Financial statusPay your bills on timeTax reportsFuture planningInvesting decisions
6Storing Financial Documents Locate your documents and sort them into categories such as payroll stubs, savings account, checking account, bills, etc.Label and file each documentMaintain filing discipline
7Safe-Deposit BoxA small, secure storage compartment that you can rent at a bank.
8Chapter 5.1 Review Questions Textbook Page 125#1-6Due at the end of classWhen finished – write down the key words and definitions from Ch. 5.2
10Personal Balance Sheet Allows you to have a complete look at your financial situation.Step 1: Determine AssetsStep 2: Determine LiabilitiesStep 3: Calculate Net WorthStep 4: Evaluate Financial Situation
11Net Worth ExampleWhat is your net worth is you have $4,000 in assets and $1,250 in liabilities?$4,000 - $1,250 = $2,750
13Cash Flow StatementMovement of cash in and out of your wallet and/or bank account.Step 1: Record your incomeStep 2: Record your expensesStep 3: Calculate your net cash flow
14Chapter 5.2 Review Questions Textbook Page 134#1-6Due at the end of class
15Budgeting for Financial Goals CHAPTER 5 SECTION 3
16BudgetA plan for spending and investing your money to meet your wants and needs.Step 1: Set your financial goalsStep 2: Estimate your incomeStep 3: Budget for unexpected expensesStep 4: Budget for fixed expensesStep 5: Budget for variable expensesStep 6: Record spending
17Budget VarianceThe difference between the budget and the actual amount spent.
18Chapter 5.3 Review Questions Textbook Page 143#1-6Due at the end of class