1. Chapter 3 Quiz TODAY

2. MTV True Life “I am a compulsive shopper”
How could budgeting have helped these ladies be in a better circumstance financially?

3. Why do you keep these records?
Journal: “Do you keep records? If so what are they for…pay check stubs, car insurance, receipts, savings account info, checking account, debit card, tags on clothing, etc.?
Why do you keep these records?

4. Chapter 3 Money Management Strategy
Personal Finance

5. Organizing Financial Records
Money management can help you…
Money Management is…
Plan and measure your financial progress
Handle routine money matters, such as paying bills on time
Determine how much money you have now and in the future
Make effective decisions about how to save money
Planning how to get the most from your money
Helps you keep track of where you money goes
Helps you make wise financial decisions
Helps you reach your financial goals

6. Places you can keep financial records
Home Files: file box or drawer used for savings account info, bank statements, paycheck stubs
Safe-Deposit Boxes: small secure storage you rent at a bank; used for birth certificates, jewelry, titles (house or car) etc.
Home Computers: good for certain financial records and used for a financial tool

7. Activity Review pages 60-64 in your textbook Get in groups of 3/4
Get an envelope of different items listed on paper
Categorize the items into 3 groups
Orange= Home Files
Purple= Safe Deposit Box
Yellow= Home Computer
Place the items listed on the sheets of paper in the correct folders
Be prepared to discuss in class

8. Article: 3 Frugal Resolutions for 2009
Question: What are 3 important facts that you can take from this article?
Chapter 3 Notes (cont)

9. Personal Financial Statements
Document that provides information about and individuals current financial position
Summary of income & spending
What you owe? (car payment, car insurance, cell phone bill)
What you make?
Personal balance sheet/net worth statements
Net worth: difference between amount you make/have and debts that you need to pay

10. Assets…in the green!
Assets: items of value such as cash, property, personal possessions, and/or investments
Wealth: an abundance of valuable material possessions
Liquid Assets: cash items that can be quickly converted into cash (checking account item)
Can also include real estate recorded at market value

11. Liabilities…in the red!
Liabilities are debts you owe
(Car payment, money you owe your parents for spring break trip, cell phone bill for texting too much!)
Insolvency: financial state that occurs if liabilities are greater than assets
NET WORTH= Assets – Liabilities
( $3,200 = $4,000 - $800)

12. Income…making $$$ JOURNAL: Why do we need to know our cash flow?
JOURNAL: Why do we need to know our cash flow? What do assets and liabilities have to do with your financial future?
Cash flow: the money that actually goes in and out of your wallet and bank accounts
Income: money that you receive from a job, allowance or interest earned on savings account
Take-home Pay: amount of income left after taxes and other deductions have been taken out
Discretionary Income: money left over after paying for essentials such as food, clothing, shelter, transportation etc. (you spend it at your own discretion)
JOURNAL: Why do we need to know our cash flow?
What do assets and liabilities
have to do with your financial future?

13. What now… Save your notes—we have one more day of notes next class
Get Personal Balance Sheet and Cash Flow Statement Review
Complete individually or with a partner
Be prepared to review your answers in class

14. Today's Activities
NEFE workbook pages read and complete individually
NEFE pages together
Journal Entry
Notes 15-20
Chapter 3 packet
HW: Read Chapter 4

15. Journal
Do you currently use a budget? Do your parents use a budget? What are some advantages to using a budget?
EXTRA CREDIT: Track all your income, expenses and spending for 1 week. Record it on a neat sheet of notebook paper or type. Worth 20 points!

16. Budget Plan for using money to meet wants and needs
Necessary for successful financial planning
Learn how to live within your income
Learn how to spend money wisely
Develop good money management skills
Reach financial goals!

17. Steps for Creating a Personal Budget
Set your Financial Goals
Estimate your Income
Budget for Unexpected Expenses
Emergency Fund (medical, unemployment)
3-6 month living expenses
Budget for Fixed Expenses
Mortgage, car payment, insurance, school loans etc.
Budget for Variable Expenses
Heating & cooling, medical
Consumer Price Index (CPI): measure of changes in prices for purchased goods
Record What you Spend
Budget Variance: what you budget to spend vs. what you actually spend
Review Spending & Saving Patterns

18. Budget Successfully by…
Planning carefully
Making the budget practical
Allowing for some flexibility
Writing the budget down and putting in an easily accessible location

19. Ways to Increase Savings!!!
Pay yourself first
Write yourself a check from your paycheck to immediate deposit into savings account
Payroll Savings
Set aside a fixed amount to go into savings directly from your paycheck
Spending less to Save
Spend less each day!
E.g. not getting that morning coffee, renting a movie instead of going out to one

20. Now what? Print your notes….3 days worth, 3 journals—20 points!!!
Get a Chapter 3 packet from me
Ch 3 crossword puzzle
Money Management Strategy
Financial Pickles
Money Management Quiz
Review Financial Pickles together!