Transcript Money Management Activities

Money Management Activities
3. Creating and implementing
a plan for spending and saving
(budgeting).
2. Creating personal
financial statements
(balance sheet and cash
flow statements of income
and outflows).
1. Storing and
maintaining personal
financial records and
documents.
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Get Organized
• Home File
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Personal and Employment Records
Money Management Records
Tax Records
Financial Services Records
Credit Records
Consumer Purchase and Automobile Records
Housing Records
Insurance Records
Investment Records
Estate Planning and Retirement Reports
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Get Organized
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Safe Deposit Box
– Death Certificates, Citizenship Papers, Adoption, Custody Papers, Military
Papers, Serial Numbers of Expensive Items, Photographs or Video of Valuable
Belongings.
– Certificate of Deposits, List of Checking and Savings Account Numbers and
Financial Institutions, Credit Contacts
– Mortgage Papers, Title Deed, Automobile Title, List of Insurance Policy Numbers
and Company Names, Rare Coins, Stamps, Gems, and Other Collectibles, Copy
of Will.
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Personal Computer
– Current and Past Budgets, Summary of Banking Transactions, Past Income Tax
Returns, Account Summaries and Performance Results of Investments,
Computerized Version of Wills, Estate Plans, and Other Documents.
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Comparison of Statements
PAST
Income
and
Expense
Statement
(Cash
Flow
Statement)
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PRESENT
FUTURE
Balance
Sheet
Budget
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Balance Sheet
Item of value (what you own)
- Amounts owed (what you owe)
= Net worth (your wealth)
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Cash Flow Statement
Total Cash Received During the Period
- Cash Outflows During the Time Period
= Cash Surplus or Deficit
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Six Phases of Budgeting
Evaluate
Achieve
success in
financial
goals
Control
Implement
Decide
Monitor,
review, revise
after each
period.
Organize
Set Goals
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Financial Goal-Setting Phase of
Budgeting
• Setting long-term goals—anything more
than 12 months away.
• Developing short-term goals from longterm goals.
• Prioritizing goals.
• Making goals time and dollar specific.
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Organization Phase of Budgeting
• Select recordkeeping format.
• Use cash basis.
• Select budget classifications.
• Select time periods.
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Decision-Making Phase of
Budgeting
• Inflation and other economic factors
• Realistic budget estimates
• Reconciling initial estimates
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Implementation Phase of
Budgeting
• Recording actual income/expenditures
• Managing with a cash-flow calendar
• Utilizing a revolving savings fund
• Calculating time-period totals
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Control Phase of Budgeting
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REASONS FOR BUDGET CONTROLS:
1. Stay on target
6. Check progress
2. Be alert to problems or
errors
7. Use a checking
account
3. Employ a credit
control sheet
8. Check accuracy
9. Justify exceptions
4. Monitor unexpended
balances
10. Employ subordinate
budgets
5. Use the envelope
system
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Evaluation Phase of Budgeting
• Compare estimated and actual amounts
• Decide how to handle balances
• Assess progress toward goals
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www.sa.utah.edu/personalfinance
Go to “Resources.”
At the bottom of the page click on
CASH expo May 15, 2009Budgeting For School, Fun, and
the Future
Jerry Basford 801-581-3435
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