Transcript Slide 1

Household/Family
Financial Management
Steps to Managing Money
The indispensable first step to getting the
things you want out of life is this:
decide what you want. --Ben Stein
Understand your Spending Habits
Develop a Spending Plan
Get ready…..
 Get Organized
 Find your papers and bills
 Tools can helpRecord Keeping
 Gather Information
 Determine how you are
spending and saving
 May need to track expenses

Make decisions and set priorities
How to Get Started….
Motivation- the first HARD step.
 Pull out all the papers and begin to sort them.
 Discard any unnecessary papers (shred)
 Decide who will take the lead on keeping these
papers organized and safe.
 Schedule a regular time each week to work on the
family records.
Where to Keep the Records
 Home Safe
 Safe Deposit Box
 Home File
 Your Wallet
Personal and Family Records to Keep
 Names, addresses, and phone numbers of relatives
 Names, addresses, and phone numbers of advisors
 Location of valuable records
 Location of safe deposit box and key
 Location of CD’s, videos and photos of home inventory.
 Computer passwords and file names
Personal and Family Records to Keep- Continued…
 Location and identification of valuables
 Insurance Policies
 Health Records
 Education Records
 Employment Records
Property Information to Keep
 Property Deeds
 Motor Vehicle Records
 Equipment warranties, guarantees and manuals
 Records of home purchase and improvements
 Burial plots
 Other
Financial Information to Keep
 Earning Records
 Account Records from financial institutions
 Credit & Debit card information
 Personal Tax Returns
 Retirement Benefits
 Notes and Money Owed
Financial Accounts
 Current Files
Bank Statements and Cancelled Checks
 Bills to be Paid
 Credit Card Statements
 Permanent Files
 Credit Records
 Pension or Retirement Information
Contracts, Notes and Debts
 Investments
Legal Records to Keep
 Official Certificates
Birth, Marriage, Death, etc.
 Current Estate Planning Information
Wills, trusts, list of non-titled property
• Advance directives and Powers of Attorney
• Social Security Card
• Passport
How Long to Keep Records
 Tax Records
 IRS says at least 3-6 years
 Consider keeping them 7-10 years
 Bank Statements
 7 years
 Cancelled Checks
 1 Year, unless it is for Home Improvement, then keep it for
6 years
 Credit Card Statements
 1 Year, unless it is for a deductible expense, or for a major
purchase, keep much longer
Household Inventory
 Reasons for a household inventory:

Amount of insurance to purchase
 Basis for filing insurance claims or tax losses
 Evidence of ownership
 Value of possessions- net worth
statement
Net Worth
 A snapshot of how much you are worth in
dollars and cents
 Assets – Liabilities = Net worth
 Assets: Cash, investments, personal assets, use
assets
 Liabilities: Loans on assets, i.e. mortgage or
car note and other debts, i.e. credit cards
What does money mean to you?
Satisfaction
Security
Status
Envy
Control
Security
Success
Power
Security
People Value Money Differently
Financial Goals Give Us:
Organization
Direction
Decision-making
Control
Predictions
Emergency Fund
Sources of Household/Personal Income
 Salary & Tips
 Social Security
 Retirement
 Child Support
 TANF
 Loans
 Tax Refunds
 Government Assistance Programs
Household Expenses
 Monthly Expenses
Fixed
Variable
 Periodic Expenses
Periodic Expenses
DEBT
Financial Goals
Credit Reports
 One free per year
 Equifax 800.437.4619
 Experian
888.397.3742
 Transunion
800.916.8800
 Annualcreditreport.com
 Check carefully
 Dispute inaccurate information
Financial
Management is
a continuous
process which
requires
periodic
adjustments