1. Budgeting and Cash Flow Management

2. Comparison of Statements
PRESENT
Balance Sheet
PAST
FUTURE
Income and Expense Statement (Cash Flow Statement)
Budget

3. Six Phases of Budgeting
Achieve success in financial goals
Evaluate
Control
Implement
Decide
Monitor, review, revise after each period.
Organize
Set Goals

4. Financial Goal-Setting Phase of Budgeting
Setting long-term goals—anything more than 12 months away.
Developing short-term goals from long-term goals
Prioritizing goals
Making goals time and dollar specific

5. Organization Phase of Budgeting
Select recordkeeping format
Use cash or accrual basis
Select budget classifications
Select time periods

6. Decision-Making Phase of Budgeting
Inflation and other economic factors
Realistic budget estimates
Reconciling initial estimates

7. Implementation Phase of Budgeting
Recording actual income/expenditures
Managing with a cash-flow calendar
Utilizing a revolving savings fund
Calculating time-period totals

8. Control Phase of Budgeting
REASONS FOR BUDGET CONTROLS:
Stay on target
Check progress
Be alert to problems or errors

9. Control Phase of Budgeting
BUDGET CONTROL MEASURES:
Use a checking account
Employ a credit control sheet
Check accuracy
Monitor unexpended balances

10. Control Phase of Budgeting
BUDGET CONTROL MEASURES:
Justify exceptions
Use the envelope system
Employ subordinate budget

11. Evaluation Phase of Budgeting
Compare estimated and actual amounts
Decide how to handle balances
Assess progress toward goals

12. Discussions About Money
MONEY MANAGEMENT AND FINANCIAL DECISION MAKING FOR COUPLES:
Unilateral
Shared
Divided

13. Discussions About Money
COMPLICATIONS FOR DUAL-EARNER HOUSEHOLDS:
More income/more expenses
Reliance on “second” income
Discretionary account for each individual

14. Discussions About Money
COMPLICATIONS BROUGHT BY REMARRIAGE:
Child support
Alimony
His/Her/Our children
His/Her funds

15. Discussions About Money
Freedom
Trust
Self-esteem
Guilt
EMOTIONS AND MONEY:
Indifference
Envy
Security/Comfort
Power/Control

16. Talking About Financial Matters
Get to know yourself and partner
Learn to manage disagreements
Use “I” not “you” statements
Focus on commonalties
Be honest

17. Develop Money Sense in Children
Give access to money
Give freedom to save and spend
Teach responsibility
Allow freedom to fail
Talk about family finances

18. Your Personal Spending Style
Givers
Me-spenders
Big-spenders
Tightwads
Normal People

19. Couples Should Discuss Personal Finances
Child bearing
Employment
Food and clothing
Housing and transportation
Recreation and vacations
Future security and debt