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Money Management Strategies

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Presentation on theme: "Money Management Strategies"— Presentation transcript:

1 Money Management Strategies

2 Organizing Financial Records

3 What kinds of financial records do you keep? Brainstorm in your notes

4 Money Management Day-to-day financial activities necessary to get the most from your money. Money trade-offs

5 Financial Documents First step in effective money management is to organize your financial documents. Benefits: Financial status Pay your bills on time Tax reports Future planning Investing decisions

6 Storing Financial Documents
Locate your documents and sort them into categories such as payroll stubs, savings account, checking account, bills, etc. Label and file each document Maintain filing discipline

7 Safe-Deposit Box A small, secure storage compartment that you can rent at a bank.

8 Chapter 5.1 Review Questions
Textbook Page 125 #1-6 Due at the end of class When finished – write down the key words and definitions from Ch. 5.2

9 Personal Financial Statements

10 Personal Balance Sheet
Allows you to have a complete look at your financial situation. Step 1: Determine Assets Step 2: Determine Liabilities Step 3: Calculate Net Worth Step 4: Evaluate Financial Situation

11 Net Worth Example What is your net worth is you have $4,000 in assets and $1,250 in liabilities? $4,000 - $1,250 = $2,750

12 Document Detective Personal Balance Sheet Page 139 #1-7

13 Cash Flow Statement Movement of cash in and out of your wallet and/or bank account. Step 1: Record your income Step 2: Record your expenses Step 3: Calculate your net cash flow

14 Chapter 5.2 Review Questions
Textbook Page 134 #1-6 Due at the end of class

15 Budgeting for Financial Goals

16 Budget A plan for spending and investing your money to meet your wants and needs. Step 1: Set your financial goals Step 2: Estimate your income Step 3: Budget for unexpected expenses Step 4: Budget for fixed expenses Step 5: Budget for variable expenses Step 6: Record spending

17 Budget Variance The difference between the budget and the actual amount spent.

18 Chapter 5.3 Review Questions
Textbook Page 143 #1-6 Due at the end of class

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