Chapter 3 Money Management Strategy Personal Finance Chapter 3 Money Management Strategy

Opening Questions How do you organize your schoolwork, homework, projects, etc.? Does being organized increase your ability to make good grades? Can organizational skills transfer to other aspects of your life like personal finances?

Objectives Recognize relationship between financial documents and money management

Financial Document Examples Bank Statements Pay stubs Car titles Birth Certificates Tax Forms

Why be Organized? Plan and measure progress Handle routine money matters, like paying bills on time Determine how much spending money you have Make effective decisions about saving

Where do you keep the records? Home Files: File drawers, system of folders, shoebox, etc… What type of documents should be in a home file?

Safe-Deposit Boxes Small, secure storage compartment that you can rent at a bank, usually $100 per year or less What type of documents? Car titles, mortgage papers, etc…

Home Computers Current and past budgets Summaries of checks and other documents Tax records Resume

Question Are there special security measures that you should take if you keep your financial records and information on a computer? If so, what type of measures?

Ethical Dilemma You recently began working for a computer company. You are excited because, after much research, you believe the job matches your skills and abilities. Last week the owner of the company asked you to change some of the financial information on the reports you produce. In addition, he asks you to destroy the originals. What would you do?

Money Management Quiz (Answer Always, Sometimes, or Never) I would create a budget for my income and expenses I would pay the rent or mortgage payment and utility bills on time I would keep three months of my living expenses in reserve for emergencies I would save 10% of my take-home pay I would set money aside for large expenses I would save to buy what I want I would use credit only when I have money to cover the charge I would balance my checkbook every month

Money Management Quiz (Answer Always, Sometimes, or Never) Give yourself 2 points for each “Always”, 1 point for each “Sometimes”, and 0 points for each “Never” If you scored 12-16, you’re practicing good money management skills If you scored 6-11, with a little more effort you could improve your money management skills If you scored 0-5, it’s time to start developing money management skills

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