family finance

FaFi | Family Finance| © http://michalskig.com/FaFi | Family Finance| © http://michalskig.com/

21.04.23

Family Finance

FaFi | Family Finance| © http://michalskig.com/

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Family Finance E-mail: [email protected]

www: HTTP://MICHALSKIG.UE.WROC.PL/

Mobile: 48.503452860

5 meetings + 1 exam (test)

Next meeting: 11th March.

Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001.

Millar R., A Complete Guide to Family Finance, Kogan Page Publishers 2004.

Israelsen C. L. , R. O. Weagley, Personal & Family Finance Workbook, Kendall Hunt Pub 2006.


The aim of family financial management?

Maximization of family wealth:

First: how we calculate realization of the general aim in nonfamily financial management?

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n

nn

n

CC

beneconon

CC

FCFV

1

__

1


10 steps to Value

1) CR

2) Operating Cycle

3) Assets

4) AP

5) Capital invested

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6) Capital structure

7) FCF forecasting

8) IRR

9) Cost of Capital (CC)

10) ∆ V


Family Finance cases: Create himself or buy? (home products, home food or in restaurants, who should

repair a tap, husband or plumber (tap expert), hire a maid? etc.

Child in home or in kindergarden?

(Homeschooling) Child in home or in school?

Car: buy older but without the credit or a new but with credit?

How many cars in a family?

House or a flat? Why?

A garden or a free time with fruits from a hipermarket?

What kind of car? Which one?

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Create himself or buy? Two + four family (2p + 4 ch).

One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent.

Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family.

1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent.

For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food.

Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

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Create himself or buy? Two adults family (2a).






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Create himself or buy? Two + one + seven family (2p + 1g + 7 ch).






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family finance

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