managing your family finances
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The University of Wyoming is an equal opportunity/affirmative action institution.The University of Wyoming is an equal opportunity/affirmative action institution.
Managing Your Family Finances
Planning forFinancial Security
Bill Taylor
University of Wyoming
Northeast Area Extension Educator
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What is Financial Security? It is not being wealthy. It is having enough money so that you have
power over financial anxiety. Financial security is the ability to meet future
needs (not wants) while maintaining day-to-day obligations.
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Are You Financially Literate? Do you understand your relationship to
money? Do you read about, discuss, and
communicate regarding financial issues? Do you possess knowledge of banking and
credit? Do you practice money management? Do you plan for major life events?
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Are You Financially Literate? Do you understand the need for protection
against unforeseen emergencies? Do you save and invest for the future? Do you know how and where to find
information to make effective personal financial choices?
And, are you a lifetime learner who applies that learning to new financial situations?
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Households Are Diverse
Households are diverse in their employment, income, investments, and expenditures
Households face wide-ranging decisions about how to allocate limited resources among various activities
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Money Decision Modelin the perfect world
YOU
your decisions
your money
your goals
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External pressurespushing at us
YOUdecisions
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Adding another person to the model
decisions
YOU
Spouse
decisions
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Impacts
When our financial world is out of alignment, so are our decisions Impact on money, relationships, and
ability to reach important goals
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Wealth Distribution ‘giving it to your chosen ones’
Wealth Accumulation‘giving it to yourself’
Estate Planning
Basic Wealth Protection ‘quit giving it to others’
Children’s Education Retirement Planning
Building Long Term Wealth: planning financial future, goal setting, regular savings plan
Home Ownership
Investments
Cash Management: record keeping, spending plans, emergency cash reserve,
regular savings plan, net worth and income-expense statements
Financial Management Pyramid
Credit Management: wise credit use, avoid credit abuse, debt reduction
Tax Management: reduce income taxes
Risk Management: protection against economic loss
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Practice goodmanagement skills
Successful managers – set goals and priorities involve everyone who will be directly affected know their strengths, work on their
weaknesses plan carefully work at carrying out their plans
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Involve family members
Increased awareness commitment participation
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Identifying Your Income
Is your family dependent on more than one source of income?
Is the primary income earner self-employed with a fluctuating income?
Is your job unstable and subject to layoffs?
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Know income patterns
Regular - save on a monthly basis
Erratic - may be more realistic to save quarterly, semi-annually, or annually
Lump - save semi-annually or annually
Time
Inco
me
regularerratic
lump
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Identify expense categories
Fixed insurance mortgage interest bearing
savings account
Variable clothing food utilities transportation recreation
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Monitor types of expenses
Essential
Necessities food utilities insurance payments mortgage payments medical payments
DiscretionaryCan be delayed or reduced in
amount food clothing recreation transportation gifts
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Find out where you are spending your money
Know where your money goes
Keep a record of expenses
Set up listing for each expense category
Date Food & grocery
Auto & mainten.
Clothing Medical & health
Home mort. & mainten.
Utilities Recreation & entertain.
May 2
May 5
May 6
150.25
80.36 22.50
24.56
36.00
25.00
100.45
37.50
43.00
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Protecting Against Identity Theft
Shred or tear up sensitive papers, especially pre-approved credit applications and all identifiers
Be careful at ATM’s/phones Have checks delivered to bank Be sure credit cards arrive on time Cancel all credit cards that you do not use in
6 months Put passwords on all accounts
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Protecting Against Identity Theft (cont.)
Ask what businesses do with your information Locked mail box Don’t carry identifiers you don’t need Pictures on credit and business cards Don’t put credit card number on unencrypted
sites, envelopes, checks Ask for SS# alternative Monitor all statements
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Protecting Against Identity Theft (cont.)
Order your credit report twice a year Immediately correct credit reports Opt out of pre-approved credit card offers Keep list of all account numbers and
customer service numbers in safe place Install a software firewall program Put a stop on mail delivery when gone Know who you’re doing business with
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Protecting Against Identity Theft (cont.)
Don’t put telephone number on checks Don’t put SS# on checks, driver’s license or
credit receipts Don’t open phishing emails Avoid Internet pop-ups
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If Your Identity Has Been Stolen
Report it immediately Any of the Credit Reporting Agencies:
Equifax 1-800-525-6285 Experian 1-888-397-3742 TransUnion 1-800-680-7289
Close tampered or unauthorized accounts File police report File complaint with Federal Trade Commission
www.consumer.gov/idtheft 1-877-438-4338 Identity Theft Clearinghouse, Federal Trade Commission,
600 Pennsylvania Avenue, NW, Washington, D.C. 20580
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If Your Identity Has Been Stolen (cont.)
Notify creditors Keep a log of all actions taken Check post office for unauthorized change of
address
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