1. Looking at Your Finances
Chapter 9.1

2. What is Financial planning?
Clarifying your financial goals and what you need to do to reach them.

3. Benefits of Financial Planning:
Live with a specific budget
Identify financial priorities
Establish funds to pay expenses
Reduce or eliminate buying on impulse
Prepare to face emergency expenses
Reduce worry about financial health
Meet long-term financial goals
Gain or maintain a sense of financial stability
Work toward retaining understanding of finances.

4. What does it mean to live within your means?
Making smart decisions about spending based on the resources available.

5. What is premature affluence?
Since many teens don’t have to pay for expenses such as groceries, electric bills and rent, they have the freedom to spend their money on other things such as clothing, music and nights out. This can create premature affluence ( a false sense of wealth)

6. The 4 elements of financial planning
Identifying financial goals
Guided by what’s important to you.
Analyze Current Finances
Create a budgeting sheet
Assets-Items that you own, including your home
Liabilities-Debts(money you owe others)
Net worth-The difference between your assets and liabilities.
Analyze Spending Habit
Keeping a log of all spending during a typical month
Planning for Financial Goals
Developing a budget ( a plan for spending and saving your funds, based on your income and expenses).

7. Needs Change Over Time Requires revising your Financial Plan Marriage
Having Children
Children Moving Out
Aging