1. May 15, 2009CASH Expo1 Money Management Activities 1. Storing and maintaining personal financial records and documents. 2. Creating personal financial statements (balance sheet and cash flow statements of income and outflows). 3. Creating and implementing a plan for spending and saving (budgeting).

2. May 15, 2009CASH Expo2 Get Organized Home File –Personal and Employment Records –Money Management Records –Tax Records –Financial Services Records –Credit Records –Consumer Purchase and Automobile Records –Housing Records –Insurance Records –Investment Records –Estate Planning and Retirement Reports

3. May 15, 2009CASH Expo3 Get Organized Safe Deposit Box –Death Certificates, Citizenship Papers, Adoption, Custody Papers, Military Papers, Serial Numbers of Expensive Items, Photographs or Video of Valuable Belongings. –Certificate of Deposits, List of Checking and Savings Account Numbers and Financial Institutions, Credit Contacts –Mortgage Papers, Title Deed, Automobile Title, List of Insurance Policy Numbers and Company Names, Rare Coins, Stamps, Gems, and Other Collectibles, Copy of Will. Personal Computer –Current and Past Budgets, Summary of Banking Transactions, Past Income Tax Returns, Account Summaries and Performance Results of Investments, Computerized Version of Wills, Estate Plans, and Other Documents.

4. May 15, 2009CASH Expo4 Comparison of Statements PAST Income and Expense Statement (Cash Flow Statement) PRESENT Balance Sheet FUTURE Budget

5. May 15, 2009CASH Expo5 Balance Sheet Item of value (what you own) - Amounts owed (what you owe) = Net worth (your wealth)

6. May 15, 2009CASH Expo6 Cash Flow Statement Total Cash Received During the Period - Cash Outflows During the Time Period = Cash Surplus or Deficit

7. May 15, 2009CASH Expo7 Six Phases of Budgeting Set GoalsOrganizeDecideImplementControlEvaluate Achieve success in financial goals Monitor, review, revise after each period.

8. May 15, 2009CASH Expo8 Setting long-term goals—anything more than 12 months away. Developing short-term goals from long- term goals. Prioritizing goals. Making goals time and dollar specific. Financial Goal-Setting Phase of Budgeting

9. May 15, 2009CASH Expo9 Select recordkeeping format. Use cash basis. Select budget classifications. Select time periods. Organization Phase of Budgeting

10. May 15, 2009CASH Expo10 Inflation and other economic factors Realistic budget estimates Reconciling initial estimates Decision-Making Phase of Budgeting

11. May 15, 2009CASH Expo11 Implementation Phase of Budgeting Recording actual income/expenditures Managing with a cash-flow calendar Utilizing a revolving savings fund Calculating time-period totals

12. May 15, 2009CASH Expo12 Control Phase of Budgeting 1. Stay on target 2. Be alert to problems or errors 3. Employ a credit control sheet 4. Monitor unexpended balances 5. Use the envelope system REASONS FOR BUDGET CONTROLS: 6. Check progress 7. Use a checking account 8. Check accuracy 9. Justify exceptions 10. Employ subordinate budgets

13. May 15, 2009CASH Expo13 Evaluation Phase of Budgeting Compare estimated and actual amounts Decide how to handle balances Assess progress toward goals

14. May 15, 2009CASH Expo14 www.sa.utah.edu/personalfinance Go to “Resources.” At the bottom of the page click on CASH expo May 15, 2009- Budgeting For School, Fun, and the Future Jerry Basford 801-581-3435