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