1. Chapter 3 Quiz TODAY

2. Journal #10: “How do you keep records or important documents
Journal #10: “How do you keep records or important documents? What are they for…pay check stubs, car insurance, receipts, savings account info, checking account, debit card, tags on clothing, etc.?
Why do you keep these records? If you don’t do a great job, why would be important to start saving certain documents?

3. Chapter 3 Money Management Strategy
Personal Finance

4. Organizing Financial Records
Money management can help you…
Money Management is…
Plan and measure your financial progress
Handle routine money matters, such as paying bills on time
Determine how much money you have now and in the future
Make effective decisions about how to save money
Planning how to get the most from your money
Helps you keep track of where your money goes
Helps you make wise financial decisions
Helps you reach your financial goals

5. Places you can keep financial records
Home Files: file box or drawer used for savings account info, bank statements, paycheck stubs
Safe-Deposit Boxes: small secure storage you rent at a bank; used for birth certificates, jewelry, titles (house or car) etc.
Home Computers: good for certain financial records and used for a financial tool

6. Activity Review pages 60-64 in your textbook Get in groups of 3
Get an envelope of different items listed on paper
Categorize the items into 3 groups
Envelope marked Home Files = Home Files
Envelope marked Safe Deposit Box = Safe Deposit Box
Envelope marked Home Computer = Home Computer
Place the items listed on the sheets of paper in the correct folders
Be prepared to discuss in class

8. Article: 3 Frugal Resolutions for 2009
Question: What are 3 important facts that you can take from this article?
Chapter 3 Notes (cont)

10. Personal Financial Statements
Provides information about an individuals current financial position
Summary of income (What you make?) & spending (What you owe? (car payment, care insurance, cell phone bill))
Personal balance sheet/net worth statements
Net worth: difference between amount you own and debts that you need to pay

11. Assets…in the green!
Assets: items of value such as cash, property, personal possessions, and/or investments
Wealth: an abundance of valuable material possessions
Liquid Assets: cash items that can be quickly converted into cash (checking account item)
Can also include real estate recorded at market value

12. Liabilities…in the red!
Liabilities are debts you owe
(Car payment, money you owe your parents for spring break trip, cell phone bill for texting too much!)
Insolvency: financial state that occurs if liabilities are greater than assets
NET WORTH= Assets – Liabilities
( $3,200 = $4,000 - $800)

13. Income…making $$$
Cash flow: the money that actually goes in and out of your wallet and bank accounts
Take-home Pay: amount of income left after taxes and other deductions have been taken out
Discretionary Income: money left over after paying for essentials such as food, clothing, shelter, transportation etc. (you spend it at your own discretion)

14. What now… Get Personal Balance Sheet and Cash Flow Statement Review
Complete individually or with a partner
Be prepared to review your answers in class

16. Chapter 3 Quiz TODAY

17. Today's Activities Chapter 3 Packet
NEFE workbook pages read and complete individually
NEFE pages together

18. Journal
Do you currently use a budget? Do your parents use a budget? What are some advantages to using a budget?

19. Budget Plan for using money to meet wants and needs
Necessary for successful financial planning
Learn how to live within your income
Learn how to spend money wisely
Develop good money management skills
Reach financial goals!

20. Steps for Creating a Personal Budget
Set your Financial Goals
Estimate your Income
Budget for Unexpected Expenses
Emergency Fund (medical, unemployment)
3-6 month living expenses
Budget for Fixed Expenses
Mortgage, car payment, insurance, school loans etc.
Budget for Variable Expenses
Heating & cooling, medical
Consumer Price Index (CPI): measure of changes in prices for purchased goods
Record What you Spend
Budget Variance: what you budget to spend vs. what you actually spend
Review Spending & Saving Patterns

21. Budget Successfully by…
Planning carefully
Making the budget practical
Allowing for some flexibility
Writing the budget down and putting in an easily accessible location

22. Ways to Increase Savings!!!
Pay yourself first
“Write yourself a check” from your paycheck to immediate deposit into savings account
Payroll Savings
Set aside a fixed amount to go into savings directly from your paycheck
Spending less to Save
Spend less each day!
E.g. not getting that morning coffee, renting a movie instead of going out to one

23. Now what? Get a Chapter 3 packet from me
Ch 3 crossword puzzle
Money Management Strategy
Financial Pickles
Money Management Quiz
Review Financial Pickles together!