1. Family Finance

2. Family Finance E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL
www:
Mobile:
5 meetings + 1 exam (test)
Next meeting: 18th 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. 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?

4. Car: buy older but without the credit or a new but with credit?
Daewoo Nubira / Suzuki Forenza / Chevrolet Lacetti Wagon (it is the same 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 3ooo Euros. What do you prefer: New car (12ooo) or Used one (3ooo).
Insurance: 3.5% for a new or 8% for an old. Your car value is in every year smaler, and go down 18%.
Services (264 euros) for every 30oookm with the new or (428 euros) for every 10ooo.
Repair one time in every year (100 euros) for a new one, and (340 euros) for every 15ooo km for an old one.
Cost of emergency transport is 0 for new and 200 euros for every 40ooo for old one.
Old car uses 1 dec3 of gasoline per every 100km more than a new one. Gasoline will costs 1,1 euro per 1 dec3
After 6 years, you sell car for average value (18% less than your startup investment).
Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)