1. Home Management and Consumer Education
FACS Unit 7
Home Management and Consumer Education

2. The Meaning of Management
The process of using available resources to meet goals.
Enables person to organize and control certain aspects of their life
Sign of maturity and enables one to achieve more
7.2

3. The Management Process
Define the problem
focus on what needs to be done
Gather information
get reliable and accurate information
Consider alternatives
explore choices
Evaluate consequences
consider the possible results of each alternatives
Make the decision
make the best choice and act on it
Evaluate the decision
consider whether the choice was good or bad and why
7.3

4. Human and Material Resources
Human resources
resources that come from people
knowledge, skills, talents, creativity, health, education, time
Material resources
tangible items which help an person meet goals
money, property, housing, possessions, schools, library, computers
7.4

5. Techniques for Managing Resources
Make a list of things that need to be done
plan
deal with items that have the highest priority
be prepared for each task
look ways to improve
don’t overload yourself
limit your commitments by learning how to say “NO”
7.5

6. Using a Computer to Manage
Financial management
Education
Accessing the Internet and on-line services
Communication--faxes and
Information research and management--word processing, spreadsheets, database
Telecommuting--work at home using computers to communicate with employer
Entertainment--games, hobbies
7.6

7. 7.6.1 Plan ways to manage resources using a computer
Online banking
Computerized checkbook
Calendar

8. Needs vs. Wants Wants Needs
something a person would like, but does not need to survive
new clothes, compact disc player
Needs
essential for survival
food, air, water, shelter, security love, companionship
7.7

9. Dividends/Investments Inheritance/Gifts Retirement Social Security
Sources of Income
Allowances
Salary
Interest
Dividends/Investments
Inheritance/Gifts
Retirement
Social Security
7.8

10. Developing a Financial Plan
Determine financial goals
needs and wants need to be considered
goals are established for the spending plan
Estimate total income from all sources
Estimate total expenses
fixed and flexible expenses
Compare total estimated income to total estimated expenses
Revise plan if necessary
Follow plan
Evaluate plan
7.9

11. Basic Banking Services
Savings
Checking
On-line banking
ATM--Automatic Teller Machine
Loans
Certificate of Deposit
Notary
Money Market
Credit Card
7.10

12. Check-Writing Write clearly in ink
Date the check the day it is written
After the words “Pay to the order of,” write the name of the person or company to whom you are paying the money.
Write the amount of the payment in numerals, close to the dollar sign.
Write the amount of the payment in words, following the amount of dollars write the word “and” for cents, ex. 50/100 or no/100
7.11

13. Check Writing (con’t) Draw in a line through the remaining space
Fill in the line marked “for”
Sign your name exactly as you signed your signature card
If a payment, write account number on check
If an error is made, VOID the check and make a note of this
Keep an accurate record by completing your check register at the time you write the check.
7.11

14. Reconciling Your Bank Statement
Compare all recorded expenditures and/or receipts to your bank statement
Some may not have been returned or processed by the bank and these are known as “outstanding” checks
Mark off the checks and deposits that have cleared the bank
7.12

15. Reconciling Your Bank Statement
1. Write the closing balance shown on the bank statement
2. List the deposits you have made that you have made that are
not shown on your statement.
3. Add the amounts from steps 1 and 2, and write the total on line 3.
4. List by number and amount all outstanding checks. Add the
amounts to find out the total and write on line 4.
5. Subtract line 4 from line 3.
6. The difference should match the balance shown in your
checkbook.
7. Remember to check for charges for services by the bank.
7.12

16. Shopping Alternatives
Discount Store
Specialty Stores
Department Stores
On-line
Catalog
Outlet mall
Resale shops
Yard sales
Thrift stores
7.13

17. How Advertising Influences Choices
Bandwagon
everyone is doing it
Testimonial
celebrities tell you they use it and you want to be just like them
Propaganda
flooding you with information to convince you that this is the right choice
7.14

18. Consumer Rights and Responsibilities
The right to safety.
The right to be informed.
The right to be heard.
The right to choose.
The right to redress. (to have a wrong corrected quickly and fairly)
The right to consumer education.
7.15

19. Consumer Rights and Responsibilities
To learn and use products safely according to the manufacturer’s directions.
To make wise choices.
To seek redress when a product fails to meet standards.
To save receipts, instructions, and guarantees to provide to manufacturers if needed when there is a problem.
7.15

20. Sources of Consumer Protection
FTC--Federal Trade Commission
Better Business Bureau
Arkansas Attorney General
Consumer Product Safety Commission
Certain Laws
Truth In Lending Law
Lemon Laws
7.17

21. Effective Shopping Skills
Consider wants, needs, and resources
Gather information
Do comparison shopping
Be flexible
Decide where to buy
Evaluate sales and bargains
Choose best time to buy
Choose the best quality you can afford
Consider how to pay
Resist impulse buying
7.16

22. Advantages and Disadvantages of Credit
Pros
freedom to buy when you want to
helps build credit rating
ability to purchase an item in times of crisis
Cons
have to repay in the future
lowers future income (because of payments made for past purchases)
can affect borrowing power in the future because of debt to income ratio
7.18

23. Income protection insurance
Types of Insurance
Automobile
Home
Life
TERM
WHOLE
Liability
Health
Income protection insurance
7.18

24. Reasons for Having Insurance
Protect your family from financial loss in case of death, fire, illness, or accident.
To replace items damaged or lost
7.20

25. Occupations in Home Management and Consumer Education
Banking
Credit Union
Credit Counselor
Tech writer for manufacturers
Marketing
Consumer Advocate
7.21

26. Personality traits needed to work in Management / Consumer Ed
Good math skills
Good communicator
Attention to detail
Like to work with others
Patience
7.22