1. FaFi | Family Finance| © http://michalskig.com/ 2016-03-15 Family Finance

2. FaFi | Family Finance| © http://michalskig.com/ 2 Family Finance E-mail: erasmus.MICHALSKI@gmail.comerasmus.MICHALSKI@gmail.com www: HTTP://MICHALSKIG.UE.WROC.PL/HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 18 th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001. Millar R., A Complete Guide to Family Finance, Kogan Page Publishers 2004. Israelsen C. L., R. O. Weagley, Personal & Family Finance Workbook, Kendall Hunt Pub 2006.

3. FaFi | Family Finance| © http://michalskig.com/ Family Finance cases: Create himself or buy? (home products, home food or in restaurants, who should repair a tap, husband or plumber (tap expert), hire a maid? etc. Child in home or in kindergarden? (Homeschooling) Child in home or in school? Car: buy older but without the credit or a new but with credit? How many cars in a family? House or a flat? Why? A garden or a free time with fruits from a hipermarket? What kind of car? Which one? 3

4. FaFi | Family Finance| © http://michalskig.com/ Car: buy older but without the credit or a new but with credit? SEAT Alhambra II / Volkswagen Sharan II / Fiat Croma / Alfa Romeo 159 / Opel Vectra C / Saab 9-3 (or similar car). You plan to change car in every 6 years. In every year, car is used for 25oookm distance and for 150ooo km distance during 6 years. You have only 5ooo Euros. What do you prefer: New car (24ooo) or 4 year used one (76oo). Insurance: 3.5% for a new or 8% for an old. Your car value is in every year smaler, and go down 25%. Services (264 euros) for every 30oookm with the new or (428 euros) for Older for every 10ooo. Repair one time in every year (100 euros) for a new one, and (440 euros) for every 15ooo km for an old one. Cost of emergency transport is 0 for new and 300 euros for every 40ooo for old one. Old car uses 2 dec 3 of oil per every 100km more than a new one. Oil will costs 1,3 euro per 1 dec 3 After 6 years, you sell car for average value (15% less than value of your startup investment). Cost od debt = k d = 18%; cost of equity = k e = 4.6% * (1-T b ) (remember about BELKA TAX! T b = Belka Tax Rate) 4