CHAPTER 3 FINANCIAL STATEMENTS, TOOLS, AND BUDGETS

Slides:



Advertisements
Similar presentations
Mrs. Wilson Business Essentials. This lesson provides information about money management basics and the reports used to measure financial progress.
Advertisements

Money Management Strategies
Money Management A system of planning for spending based on expected income.
© 2013 Pearson Education, Inc. All rights reserved.2-1 Measuring Your Financial Health and Making a Plan.
Measuring Your Financial Health and Making a Plan.
Chapter 3 Quiz TODAY.
Current Ratio Calculate the current ratio using the information above. Remember, the current ratio is Monetary Assets/Current Liabilities.
16 Money Management and Financial Planning
1 Chapter 2 – Measuring Financial Health Important parts Construct & interpret financial statements Budgeting Record-keeping Financial planners.
Chapter 9 – Incremental Cash Flow  Learning Objectives  Understand the importance of cash flow  Calculate the operating cash flow  Produce a Sources.
Personal Finance Garman/Forgue Ninth Edition
Money Management Strategies
Money Management Skills
© The McGraw-Hill Companies, Inc., All Rights Reserved. Irwin/McGraw-Hill Chapter 3 Money Management Strategy: Financial Statements and Budgeting.
2 Money Management Skills
Chapter 2 Money Management Skills Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Unit 2: Measuring Financial Health. Learning Objectives O Define asset, liability, and net worth. O Calculate the level of net worth using a balance sheet.
Monday January 30 th Personal Finance 1. Journal: 5 reasons you need to budget Journal Which reason is most important to you and why? How can you start.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Analyzing Year End Financial Reports to Evaluate the Business Objectives:  The student will describe five key factors of year end financial analysis 
Money Management Skills
Stock Market Analysis and Personal Finance Mr. Bernstein Personal Financial Statement, pp February 19, 2015.
Personal Finance Chapter 3 Section 3.1 and 3.2.
Section 1Organizing Financial Records Budgeting How do your spending options fit: Day-to-day financial activities necessary to get the most from one’s.
Money Management Strategy
FINANCE, It’s a Personal Thing ! WHICH WAY IS NORTH ?
Chapter 2 In-Class Notes. Personal Cash Flow Statement Record Your Income Salary, interest income, dividends Record Your Expenses Rent, living expenses,
CHAPTER THREE: MONEY MANAGEMENT & STRATEGY UNIT ONE PLANNING PERSONAL FINANCES “I didn't end up going bankrupt... I made some great investments and I held.
CHAPTER 3 MONEY MANAGEMENT STRATEGY. WHAT YOU’LL LEARN When you have completed this section (3.1), you’ll be able to: Discuss the relationship between.
Budgeting Personal Finance. Financial Planning Net Worth Income Expenditures Unplanned Expenditures Debt Savings.
Bennie D Waller, Longwood University Personal Finance Bennie Waller Longwood University 201 High Street Farmville, VA.
Phase 1 Exam Review 25 M/C, 25 T/F Questions 3 Time Value of Money Problems Chapters Personal Financial Planning FIN 235.
1 Understanding the Financial Statements Lecture No.35 Professor C. S. Park Fundamentals of Engineering Economics Copyright © 2005.
Overview of Financial Statement Analysis Chapter I.
Financial Management Back to Table of Contents. Financial Management 2 Chapter 21 Financial Management Analyzing Your Finances Managing Your Finances.
Chapter 3 Section 3.1 and 3.2.  Money Management  Spend your money on clothes or save it?  Shopping around for better deal on mp3 player?
Problem #9 Test 2 Solution. Record Keeping and Budgeting Chapter Three Objective: Compute the average monthly expenditure.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
User-Defined Placeholder Text Chapter 3 Money Management Strategy 3.2.
Learning Objective # 3 Develop a personal balance sheet and cash flow statement.
Topic 5: Cash Flow Management
TWO IMPORTANT FINANCIAL STATEMENTS SBM 110. INCOME STATEMENT The income statement’s primary role is to show a profit or loss over time. Using the difference.
Chapter 3 Money Management Strategy. Today’s topics are…  Opportunity Cost and Money Management  Benefits of Organizing Your Financial Documents.
BUDGETING Chapter 6. True or False ä Financial success depends on luck more than planning. ä Spending small amounts of money now will not affect your.
Chapter 12 Budgeting.
Personal Financial Statements Chapter 12 Personal Financial Statements The Balance Sheet.
Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved.
2-1. McGraw-Hill/Irwin Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 2 Money Management Skills.
 Case Studies Chapters  Chapter 1: The Financial Planning Process o Major Steps Engagement (Scope of Financial Plan) Gather Client Information.
Chapter 2 Measuring Your Financial Health and Making a Plan
Chapter 2 Money Management Skills McGraw-Hill/Irwin
Chapter 2 Money Management Skills McGraw-Hill/Irwin
“I’ve got a great job and no bills. I still live at home
Personal Finance Balance Sheet
Longwood University 201 High Street Farmville, VA 23901
Chapter 2 Money Management Skills McGraw-Hill/Irwin
Money Management Strategy Personal Financial Statement
Business and Personal Finance
Chapter 36 Financing the Business
Chapter 2 Money Management Skills McGraw-Hill/Irwin
Financial Decisions and Planning Chapter 4.
Section 3.2 Personal Financial Statements
“Where Did All the Money Go?”
Measuring Your Financial Health and Making a Plan
Chapter 3 Quiz TODAY.
General Money Management & Personal Savings and Investment
Money Management Strategy
Session Two A Financial Physical
Financial Statements, Tools, and Budgets
DEVELOPING YOUR FINANCIAL STATEMENTS AND PLANS
Presentation transcript:

CHAPTER 3 FINANCIAL STATEMENTS, TOOLS, AND BUDGETS FALL 2012 Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS LEARNING OBJECTIVES Identify your financial values, goals, and strategies. Use the balance sheet and the cash-flow statements to measure your financial health and progress. Evaluate your financial strength and progress using financial ratios. Collect and organize the financial records necessary for managing your personal finances. Achieve your financial goals through budgeting. Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS IDENTIFYING FINANCIAL VALUES, GOALS, AND STRATEGIES How will you define financial success? Setting achievable financial goals Spending Risk Management (medical, disability, life, liability) Capital accumulation Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS How are wealth-building principles related to financial goals? What strategies make sense given your goals and wealth-building principles? Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS IMPORTANCE OF FINANCIAL STATEMENTS The Personal Balance Sheet Assets: monetary, real, financial Liabilities: installment debt (S-T, L-T), credit cards Net Worth: increase assets, reduce liabilities Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS Cash Flow Statement (Cash Budget) See table 3-3 on page 76 Income Expenses: fixed, variable Savings and/or Investments Surplus: Discretionary Disposable Income uses Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS TRACKING FINANCIAL PERFORMANCE Using Financial ratios Liquidity Ratio: ability to pay your bills Debt ratio: total debt to total assets Debt Service to Income Debt payments to disposable income Investment assets to Total assets Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS Importance of keeping Good Records Helps in achieving goals Useful at tax time Removes guesswork when planning the future Dr. David P. Echevarria All Rights Reserved

FINANCIAL STATEMENTS, TOOLS, AND BUDGETS COMPONENTS OF BUDGETING Living expenses Debt service (especially credit card and installment purchases) Savings/investments HOMEWORK Do the Math: 2, 5 Dr. David P. Echevarria All Rights Reserved

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.