1. Consumer Education- Chapter 9
Financial Planning
Consumer Education- Chapter 9

2. Looking at Your Finances – Section 9.1
Live within Your Means
Elements of Financial Planning
Making a budget
Choosing investments
Establishing credit
Insurance
Retirement
Estate plan

3. Looking at Your Finances – Section 9.1
Accessing Current Finances
Assets-items of value that you own, including money
Liabilities- debts or obligations owed to others
Net Worth – amount by which assets exceed liabilities
Identify and Make financial Goals
Analyze Spending Habits
Adapting to changing needs
Marriage
Parenthood
Children moving out
Aging
Family Crises

4. Using Financial Software – Section 9.2
What Financial software can do
Checkbook and other transactions
Expense tracking
Budgeting
Automatic reminders
Income tax planning
Online Banking
Using financial Software
Well-designed software can make it easier to organize and manage finances
Purchasing and upgrading can be costly
Make regular backups
Stay aware of upgrades

5. Creating a Budget – Section 9.3
Estimate Income (Net Income)
Estimate Expenses
Fixed expenses – regular payments with set amount
Variable expenses – expenses that in normally increase or decrease
Based off your past spending habits
Planning for savings
Balanced budget
Using your budget
Evaluating and adjusting the budget

6. Organizing your records – Section 9.4
Why should you keep Records?
Identification
Legal Proof
Loan applications
Tax purposes
How Long to Keep Records
Birth and marriage certificates and Social Security Card should be permanently kept
Bank statements-3 years
Pay stubs – until after income taxes
Tax returns and documents – 7 years
Storing Records and Documents
Safe deposit box
Home safe
Home filing system
Electronic storage

7. Seeking Professional Advice – Section 9.5
Credentials- licenses, certifications, of degrees that indicate the person is qualified to perform a service
Who is Qualified to Help?
Certified Financial Planner (CFP)
Chartered Financial Consultant (ChFC)
Certified Public Accountant (CPA)
Insurance Agent
Attorney
Stockbroker