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