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