section 1organizing financial records budgeting how do your spending options fit: day-to-day...
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Section 1 Organizing Financial RecordsBudgeting
How do your spending options fit:
Day-to-day financial activities necessary to get the most from one’s money
money management
Common financial documents that are helpful for money management
Section 1 Organizing Financial Records
Pay StubsAutomobile
Titles
Bank StatementsBirth
Certificates
Broker ReportsMarriageLicense
Credit Card Statements
Tax Forms
Organized Financial Documents = Important!
Section 1 Organizing Financial Records
Budgeting
What can an organized system do for you?
Determine your current financial status
Pay your bills on time
Complete required tax reports
Plan for the future
Make sound financial decisions related to investments
Storing Your Financial Documents
Budgeting
HomeFiles
Safe-DepositBox
HomeComputer
safe-deposit boxa small, secure storage compartment that can be rented in a bank
Financial documents will help you determine your:
assetsowned items of value
liabilitiesdebts that one owes
net worththe difference between the amount you own and the debts you owe
Section 2 Personal Financial Statements
Budgeting
Categories of assets
Liquid Assets
Real Estate
Personal Possessions
Investment Assets
liquid assetscash and items that can be quickly converted to cash
real estateland and any structures that are on it
Section 2 Personal Financial StatementsBudgeting
Types of Liabilities
Current Liabilities Long-Term Liabilities
Insurance premiumsCurrent taxesUtility billsMedical bills
Mortgage LoansHome improvement loansVehiclesCollege tuition
Bills Loans
To be paid longer
than a yearDue within a
year
Section 2 Personal Financial StatementsBudgeting
discretionary incomemoney left over after paying for essentials
BudgetBudgetSection 3 Budgeting for Financial Goals
Budgeting
A plan for spending and investing money
Steps to Develop a Budget
Section 3 Budgeting for Financial GoalsBudgeting
1. Set Your Financial Goals
2. Estimate Your Income
3. Budget for Unexpected Expenses
4. Budget for Fixed Expenses
5. Budget for Variable Expenses
6. Record What You Spend
7. Review Spending and Saving Patterns
Steps to Develop a Budget
Section 3 Budgeting for Financial GoalsBudgeting
4. Budget for Fixed Expenses
5. Budget for Variable Expenses
Fixed expenseAn expense that recurs and is the same amount every month
Variable expenseAn expense that recurs but is not the same amount every month
Budgeting
Sample budget form for teens