1. Avoiding Financial Trouble
Slide 1 - This workshop is designed to provide an overview of the things we need to accomplish to maintain good financial health. We will introduce you to basic financial principles and hopefully, the result will be to improve your financial management literacy and money management skills. But first let me tell you about Cooperative Extension:
Virginia Cooperative Extension (use as much of this as you see fit).
1) Historically, CES grew out of the U.S. Congress’s concern for the education of the average citizen,
…originally addressing the needs of people who made their Livelihood from agriculture.
In 1863, Congress passed the Morrill Act which provided for a university in every state which would educate citizens in agricultural and mechanical fields.
These colleges today are known as “land Grant” Universities.
2) Congress realized that education must be based on research so it passed the Hatch Act in 1887.
The Hatch Act provided for the establishment of facilities where colleges could conduct research into agricultural, mechanical, and other problems faced by rural citizens.
These research facilities are out in the community.
3) Finally in order to pass the benefits to even the remotest parts of the state, Congress passed the Smith Lever Act of 1914.
Smith Lever provided for the establishment of the Cooperative Extension System.
As a result, there are Cooperative Extension offices in almost every one of the nation’s 3,150 counties (and in some cities too).
Cooperative - a nation wide network of educators who serve in the national interest
Extension - means that these offices extend to the public the information developed on the campuses and research stations of the land grant universities.
Cooperative Extension is a unique educational system that partners federal, state , & local government using funds from these three sources.
Prince William Area
Financial Education Program

2. A Way to Look at Personal Finances
Overview
Values & Goal Setting
Causes of Overspending
Credit
A Way to Look at Personal Finances
Financial Net Worth
Debt & Savings
Income & Expenses
Slide 2
There are three sections to the workshop:
1) The first section introduces goal setting, why we overspend, and the impact of credit card abuse
2) The second section goes into how we can compute financial measures such as net worth and cash flow to determine our financial health
3) The final section introduces some individual actions we can pursue to begin improving our financial health
“Bare Bones” Budget
Spending Plan
Record Keeping 4 4

3. Perceptions About Money
Medium of exchange?
Or something else?
Slide 3 - Perceptions about Money handout/questionnaire. Perceptions shape values and values shape perceptions; How/where did we learn our values? Will they change?
This will let participants understand that different people grew up with different perceptions about money and how it plays in one’s life.
Some families prepared their children to deal with personal financial management, some did not.
As a counselor, this information will help you to gain insight into the person you are helping.
See Handout 6 6

4. Money Problems Involve
Value conflict
Unrealistic goals
Emotional uses of money
Lack of planning
Slide 4 – Animated – one bullet at a time
Most families face money problems because of a lack of planning and communication. These problems generally fall under four categories.
1 - Value Conflicts - No two persons have exactly the same values, but when there are sharp differences in values in a household, negotiation is vital. To save or spend, to buy life insurance or a new car, to pay for college tuition or stereo equipment-these choices reflect values and potential conflicts.
2 - Unrealistic Goals - Striving immediately for the same quality house, furnishings, and car that took your parents 30 years to earn is a common problem. Insisting on unrealistic standards often results in frustration and , worse, over-indebtedness. Setting priorities, resisting outside pressures of advertising and peers, and taking satisfaction from the “no cost” aspects of life can help.
3 - Emotional Uses Of Money - Buying status, friendship or love; controlling or punishing others by withholding money; and overspending to get back at another family member are all emotional uses of money.
4 - Lack Of Planning - Impulse buying with credit cards, daily trips to the store, inadequate health insurance, and low-yield investments all indicate a lack of financial planning. Setting new goals and seeking alternatives are necessary for successful financial management. In times of inflation and rapid change, relying on old habits can be costly.
(Note: Advise the participants to refer to the “Values Test” worksheet, have participants complete in class if time. If training volunteers advise the group to also use the test on their clients.

5. Dream A Picture - Your Life in Ten Years
House, townhouse, or apartment?
Big city, town, or country
Married or single
Children, grandchildren, no children
At home with children, employed by someone else, owning your own business, in school, or retired
Healthy, ailing, gone to the “beyond”
Slide 5 - Your picture is a reflection of your values-those beliefs that are deep-rooted- and indicate what goals in life you are willing to work the hardest to achieve.
Does this picture match your values?

6. Setting Goals Clearly define your goals Who needs to help you?
Personal, financial, career, social, etc.
Who needs to help you?
Goals should be
Specific
Measurable
Realistic
Time frame (deadline)
Placed in priority order
Visual!!!
Slide 6 Handout Goal Sheet
Define your Goals - There are all types of goals, but tonight we are interested in setting and achieving financial goals.
It sounds really simple, but setting goals is a powerful method to get things accomplished. Think of this from a sports context. If I handed you a football, which direction would you go? Obviously, you head towards your goal, and you have 4 quarters to do it. That’s why they call it a goal – it’s what you want to accomplish! Your goal has given you a direction, something to work towards. Perhaps more importantly, the goal gets your whole family (your team) working together and moving in the same direction. It sounds simple, but goals are extremely important in financial management.
For example:
My goal is to save $1,200 over the next twelve months toward my next vacation.
This example satisfies all the requirements of a goal:
Realistic but challenging- I make enough money or I can change my behavior to save $100 a month, but saving is not something I’m used to doing.
Measurable - $1,200
Time frame (deadline) - over the next 12 months
Visual - you can see yourself at your vacation spot lying on the beach or skiing in the mountains
Now ask participants to take out the goal sheet in the packet and set one goal when they go home and post it where they can see it. A university study found that people who write down their goals are nine times more likely to achieve them than people who don’t write them down. Achieving goals means defining needs and wants and setting priorities. Tell “Visual” story - East German Olympic Swimmers.
See Handout

7. Needs vs. Wants FOOD Steak or Hamburgers
Apartment, Townhouse, Condo, Detached Home
SHELTER
CLOTHING
Nike or Payless
Slide 7
Needs – need the basic requirements of life.
Wants – make life easier.
Go through slide.
In our society , we are bombarded daily with advertisements telling us we need the product being advertised. As a result, many people have trouble distinguishing between needs and wants.
A need is something that is thought to be a necessity and is basic for survival, wants are desirable to make your life more comfortable. For example, most people need transportation to and from work, but they do not need a new automobile for this purpose. Needs should be distinguished from wants before you make a decision to buy.
Financial planning involves managing all your resources to achieve your goals and objectives. Your time, talents, and money are some of those resources. Knowing the difference between your needs and wants will help you manage your money better.
CARS

8. Five Leading Causes of Overspending
5 - Thinking that money can buy happiness
4 - Wanting only the best for your children
3 - Trying to keep current
2 - Taking out car loans
Slide 8 - Animated slide - Here are the five top reasons people overspend. We will go from #5 to #1 - the top reason why people overspend.
5 - Thinking that money can buy happiness (ask the participants if money can buy happiness. Discussion. For most people it can not, or at least it can not for long. Exercise - Have everyone close their eyes for 3 seconds.. While their eyes are closed, ask them this question: Think of the event in your life where you were the happiest and hold the first thought that comes to mind. Then ask - “did anyone’s thought have to do with money (normally very few if any thoughts of happiness had to do with money).
4 - Wanting only the best for our children - Ask participants if they want only the best for their children (all usually say yes). Then ask if spending large amounts of money provides “the best” their children need. Then ask how many people with children spend more money for their children’s shoes than their own shoes.
3 -Trying to keep current - Buying the latest version of things when what they are replacing is still fine (whether cars, CD’s, electronic equipment, clothes, etc).
2 - Taking out car loans is the number 2 reason why people overspend. We get a job and think we can buy that Lexus, when a Saturn is better for our financial health. Or the salesperson asks what can we afford for a monthly payment rather than what we can afford to spend in total including car insurance, maintenance, personal property tax, etc. Or we don’t consider that we may be committing ourselves to 5 or 6 years of monthly payments of the amount quoted
And what is Number 1…?
...AND WHAT IS NUMBER 1?

9. #1 Leading Cause of Overspending
Abusing Credit Cards ?
Slide 9
Any idea???
1 - Abusing credit cards - the number one reason - let’s go into more detail on this...

10. Paying Off Credit Cards
Situation
18% interest rate
Debt is $5,000
Slide 10 – animation- Explain Installment vs. Revolving credit; this is a revolving credit example
Paying Off Credit Cards
This slide illustrates a real life situation where a person has a credit card at 18% interest, incurs $5,000 of credit card debt over a few months time (items may include big screen TV, dining out, Christmas presents, unforeseen car repairs) and pays the minimum balance on their credit card when the bill comes.
Click once – Interest rate appears
Click again – Debt amount appears
Click again - Pays minimum balance appears
Click again – Happy guy comes into picture
He is happy because he has a “good deal.”
Pays minimum balance

11. Results in Time and Money
Takes about 3 years to pay off
Interest charge is $1,314
Total cost is $6,314
Slide 11 – Here is the Result
Click once – Takes about three years to pay off appears
Click again – Interest charge appears
Click again - Total cost appears
Click again – Sad guy comes slowly into picture
So now let’s look at why it takes 3 years and another $1,300 to pay off this charge.

12. Why? - Minimum Monthly Payment is usually 4% of Balance
$200
$5,000 Times .04
Interest Rate
1.5%
18% divided by 12
Interest
$75
$5,000 times 1.5%
Principal
$125
$200 - $75
Slide 12
Why?
Here is the credit card company math on why making minimum monthly payments is so costly – and dangerous.
Before Jan. 2006, credit card issuers required a payment of 2 to 3% of outstanding or average monthly balance when they computed the “Minimum Payment”. After Jan 2006 the minimum monthly payment became 4% to 6% in most cases.
Minimum payment is determined by multiplying the balance by the minimum percent due
The monthly interest payment is computed by first dividing the annual rate by 12, since payments are monthly, to get the monthly interest rate. (18% divided by 12 = 1.5%)
The interest charge is converted to a monthly amount before being applied to the balance (5,000 times .015 = $75)
What is left after the interest is computed goes towards principal
Note that the amount of interest they pay on this first payment is 75% of their payment ($75 of $200, in the new method the effective rate is 37.5% on this first payment).
But also note the monthly minimum payment is now doubled (it was only $100 when the minimum payment was computed at 2% of the balance owed.– can the family afford this increase in cash
Also consider that the effective rate on that first payment was 75% when companies used 2% of the balance to determine the minimum payment.
Effective January 2006, minimum payment amount increased from 2% to 4% – 6%

13. Managing Credit Spouses Understand co-signing loans Pay bills on time
Individually
Joint
Understand co-signing loans
Pay bills on time
Get credit report
Know credit score
Pay credit cards in full when due
Slide 13 - So what is the best way to manage our credit? First, ensure that spouses have individual accounts – accounts in their own name that they don’t share with anyone. Minimize joint accounts.
Understand co-signing loans - rarely is it smart to cosign a loan – it means you must pay the loan if the primary borrower does not.
Pay bills on time – the single biggest determinate for a good credit score is a history of on-time payments
Get credit report and check to make sure all information is correct – including your personal information
Know your credit score and why it is what it is. Meet with a reputable financial counselor if necessary
Pay credit cards in full when due – credit cards should never be used for “credit.” Rather they are for convenience and should be paid off in full when due. Don’t carry a balance.
Now we will move on to some measures of your financial health. We use measures of financial health just like doctors use measures of medical health – to prevent problems or to correct them when discovered….

14. “Financial Assets minus Financial Liabilities”
Financial Net Worth
“Financial Assets minus Financial Liabilities”
Financial Value of “You”
A Snapshot in Time
Shows Your Capacity to Accomplish Major Financial Goals
Slide 14
Financial Net Worth – animation After going thru the bullets, click on this slide and the message “Am I getting ahead?” appears on the bottom of the slide.
This is pretty simple: It is your assets minus your liabilities. Or
What you own (at what you can sell it for) minus what you owe (what it would take to pay off what you owe)
Financial Net Worth is the Financial Value of “You” and not a measure of your self worth
a snapshot of your financial health (you do not have to compare your number to your friends or neighbors) – it is a point in time and can change
It is not a scorecard of life.
Shows your capacity to accomplish major financial goals such as
buying a house,
retiring,
or withstanding unexpected losses of income.
Now let’s look at Assets and Liabilities in a little more detail; we will start with assets…
Can be used to answer the question:
“Am I getting ahead?”

15. Assets Are worth real money Can be converted into “hard” dollars
Generally include:
Your home
Money in bank accounts
Stocks & bonds
Mutual funds
Businesses owned
Real Estate owned
Slide 15
Assets – no animation
Are worth REAL money. Assets are valued a what you could sell them for, not what you paid for them.
You can turn assets into cash now or in the future.
HAND OUT ASSETS SHEET, GO OVER SHEET
Now let’s look at liabilities.
See Handout

16. Liabilities Generally Include: Good VS Bad Debt
Loans and Debts Outstanding
Credit Cards Auto Loans Education Loans
Money Borrowed from Family or Friends
Home Mortgage Debt
Good VS Bad Debt
Slide 16
Liabilities – no animation HAND OUT LIABILITIES SHEET, GO OVER SHEET
Only include money borrowed from friends or family that you expect to pay back.
If we subtract our liabilities form our assets, we have our Net Worth. After we compute our net worth, we are in a position to interpret our own net worth…
Bad Debt - Borrowing for Consumption - the item loses value over time or ceases to exist while we still pay for it (charging a vacation for example) – also known as “Consumer” Debt
Good Debt - Borrowing for Long Term Investment, the item you borrow against increases in value.
The amount of good debt you have is determined by your objectives. If your objective is to buy a house, you will have more good debt than someone who chooses to rent. Buying a home, financing your education, or investing in your business are all considered good uses of debt – but don’t forget, even though these uses are “good” it doesn’t mean we should borrow unreasonable amounts to achieve them
See Handout

17. Interpreting Net Worth Results
!!!
Negative
About Zero
Several Times Annual Income
Slide 17
Interpreting Net Worth Results – no animation
Negative:
- The majority of Americans fall into this category
- Not so bad if you are in your 20’s and just starting to work
Actions needed:
- Get rid of debts (highest interest ones first).
- Build a safety reserve: 3 to 6 months of living expenses. (The idea of the safety reserve is very important.)
About zero
- REDUCE SPENDING AND ACCELERATE SAVINGS and investing.
More than a few years annual income:
- You are on track or ahead of the game!
So where do we start after determining our assets and liabilities? Let’s move to budgeting (laugh if everyone groans)

18. Bare Bones Budget Savings Insurance Housing Food Health 6% Clothing 6%5%
Housing
11%
30%
Food
14%
Health 6%
Clothing 6%
Entertain 5%
Charity 4%
Misc 2%
17%
Slide 18
Bare Bones Budget
Explain that this is a minimum level budget – what you need to start out with for most people. It doesn’t reflect Bill Gates’ budget nor does it reflect “Bill Smith’s”, who lives on Social Security benefits, budget. But these percentages are a good starting point for most people to begin the budgeting process. Notice that there are no dollar amounts. A pie chart is used because it represents 100% of what we have available no matter what the dollar amount we earn.
What is missing from the pie is a piece for debt payments. The point is that when you take on debt and must make debt payments, those payments must come from some other part or parts of the pie, which makes those pieces smaller or disappear. The question is where do we take the money to pay for debt? Eventually too much debt will lead to bankruptcy because a person will not have enough money to pay for the essentials in the pie.
By the way, it is usually better if only one person maintains the records in your family, because then everything recorded will be done with the same system. Everyone is responsible for proper spending and record keeping, but only one person should actually maintain the records (that person should show the other person how though)
If the idea of a budget really turns you off, then consider a simple spending plan….
23%
Transportation
Note: percentages are averages, your individual budget may vary.

19. Formula for Financial Success L+S+D=Income
Living expenses + savings + debts = Income
Debts
Savings
15%
10%
Slide 19
One key to financial success is creating a spending plan. Living expenses plus savings, plus debts must be equal income. This is a quick way to do a financial check-up and keep the spending plan balanced. Live on 75% of take-home pay, save 10%, and spend no more than the remaining 15% repaying your debts (excluding your mortgage). As debts are paid off, this frees additional money for long or short term savings. (Lifestyle choices and changes in spending behavior top the list of effective ways to balance the spending plan.) This example is a rule of thumb and like all these rules must be adapted to your situation. Bear in mind a spending plan is a working tool, and it should remain flexible. It is designed to fulfill your changing needs, wants and goals.
Another way to look at balancing the spending plan is to divide the monthly income into weekly controls or limits:
l Use 1 week’s pay to cover savings and debts (10% & 15% of monthly income respectively)
l Use 1 week’s pay to cover housing cost (25%)
l Use 2 week’s pay for all other living expenses (50%)
l For a total of 4 weeks of disposable income
Living
Expenses
75%
Simple Spending Plan

20. How to Develop a Working Spending Plan
Conduct an Earnings and Spending Analysis! Determine Your
Income from all sources
Fixed Expenses
Stay the same every month
Flexible expenses
Usually change from month to month
Periodic Expenses
Usually occur once or twice a year
Slide 20 – Slide is self explanatory

21. Earnings & Spending Analysis
Record What You Earn
Understand where your money comes from
Record What You Spend
Figure out on what you typically spend your money
Compute the Difference
This is your cash flow
Slide 21 Earnings & Spending Analysis – Why do more than the simple spending plan?
You aren’t saving enough money to meet your financial goals.
You believe your spending is out of control or you don’t know where all your income goes.
You’re anticipating a significant life change:
marriage/divorce
children
new career/job loss/relocation
retirement
sickness/death
aging parents
You need to set up an emergency fund.
Now let’s see how you do an earnings & spending analysis…
Spending Analysis –
1) You record what you earn – HAND OUT INCOME SHEET – GO THRU SHEET BRIEFLY
Understand Where Your Money Comes From
2) You record what you spend – HAND OUT EXPENSES SHEET – go thru expenses categories briefly
Figure Out What you Typically Spend Your Money On
3) You compute the difference (is it plus or minus) This is your “cash flow”
This helps you:
Establish Good Financial Habits like saving, paying bills on time (just like washing your face, brushing your teeth, and exercising are good health habits)
Maintain a Regular Automatic Savings Routine – pay yourself firs.
Once you do this analysis you are in a much better position to understand debt, savings, and investing - - building your net worth;
Let’s look at debt –
See Handout

22. Consumer Debt Ratios (Bad Debt)
Debt to Income Ratio
Monthly Consumer Debt Payments
Slide 22 –Although there are many different debt ratios lenders use to evaluate borrowers and planners use to assist their clients, we are going to focus on these two. They measure ‘bad debt” or consumer debt.
Home mortgage is not included in these ratios.
The debt to income ratio measures our ability to meet our monthly debt payments – this ratio works with cash flow.
The debt burden ratio is how much total debt we carry. We compare how much we owe in total to our annaul income.
Let’s illustrate these, first we’ll look at the debt to income ratio.
Debt Burden Ratio
Total Consumer Debt

23.  Debt to Income Ratio = $500 $2,500 20% Less than 15% - Good!
Total Monthly
Debt Payments
(Exclude Mortgage) 
Monthly After
Tax Income =
Debt to
Income Ratio
$500
$2,500
20%
Slide 23 - Debt to Income Ratio - Animated Click on slide and the numbers appear.
This is one way to measure debt. It allows a person to see how much of a monthly payment can be afforded for debt.
Take the total monthly payments on debt (exclude mortgage) divide by monthly after tax income and you get the ratio. It should be 15% or less to be safe.
It is not unlike the approach of a car salesman who asks if you can afford $199 per month, not if you can afford a $20,000 car.
It is a good measure from a cash flow perspective, but it fails to show a person’s debt burden, how much in total the person is in debt (the debt danger ratio shows “burden “).
When used with the debt danger ratio a truer financial picture emerges.
Now let’s look at total debt….
Less than 15% - Good!

24.  Debt Burden Ratio = 40% $12,000 $30,000 Less than 25% - Good!
Total Bad
Debt
(Exclude Mortgage)
Gross Annual Income
(After Taxes)  =
Debt Burden Ratio
40%
$12,000
$30,000
Slide 24 – Animated Click on slide and the numbers appear
Debt Burden is from “Personal Finance for Dummies.”
In this example we are only considering bad debt. The Total Bad Debt of $10,000 includes an auto loan and $2,000 of credit card debt.
The $30,000 is the gross annual income.
For northern Virginia, an allowable bad debt ratio of 25% may seem not high enough. However, the point here is that over our lifetimes we need to get this ratio down to zero. The idea is that since it is “bad” debt we want to have none of it.
When you use this ratio along with the monthly debt to income ratio you can see if your monthly payments are too high and if you total debt is getting out of hand. Using only one of these can mask are true debt picture. One measures our ability to meet our monthly obligations (Debt to Income Ratio), while the other (Debt Burden Ratio) measures whether we have taken on too much debt in total.
Now that we have discussed debt, let’s look at the other side - savings...
Less than 25% - Good!
…but should be zero!
From Personal Finance For Dummies™, 2nd Edition by Eric Tyson. Copyright © 1996 by Eric Tyson. All rights reserved. Reproduced here by permission of IDG Books Worldwide, Inc. …For Dummies is a registered trademark under exclusive license to IDG Books Worldwide, Inc., from International Data Group, Inc.” 17 17

25. Tips on Saving $ Pay Yourself First!
Treat Savings as a Fixed Expense
Save at Least 5% - 10% of your Gross Salary
Build up 3 to 6 Months of Living Expenses
Emergency Reserve (loss of job)
Periodic Expense Reserve (insurance, vacation, holiday gifts)
Start Investing
Slide 25
Tips on Saving – no animation
Pay yourself first simply means that you make savings an expense, just like paying the rent or electric bill – only you pay your savings account.
Build up enough money in a savings account or money market fund to cover 3 to 6 months of expenses. This money should not be in a mutual fund or other investment vehicle because it is an emergency reserve and emergency means it must be there when you need it.
This is to cover emergencies such as losing your job, and still allow you to live in your home, buy food, and make the car payment, etc. until you find another job
Alternatives could include borrowing money from friends and family (if they will lend it to you), or moving back in with your parents (if they will let you.) But what you need is the financial independence to take care of yourself – an emergency reserve helps provide that independence.
Let’s take a look at how money grows if invested properly…

26. How $100 A Month Will Grow Over $182,000 Dollars YEARS (8%)
Slide 26 – animation
How $100 per month will grow.
Can you invest $100 per month?
Click once, blank chart appears - What do you think happens if you invest $100 per month for 30 years (at an 8% return)
Click again filled chart sowing growth appears
It doesn’t really start to grow until about year 10, just like we have already seen – but it grows to over $180,000.
This happens in just 30 years – so if you are 25 now (or know someone who is) just look at what you will have at age 55!
And if you can’t put away $100, put away $50 – you’ll have over $90,000!
The point is, do not wait… let’s look at what procrastination does…
YEARS
(8%)

27. Procrastination (Waiting to Start)
+$109,236
$18,000
9 Years
Jill
$579,488
$70,000
35 Years
Jack
Slide Animation Procrastination (Waiting to Start)
Let’s take an example of Jack & Jill (you remember them don’t you)? Went up the hill for water, Jack fell down, so did Jill but she didn’t get hurt. Jack broke his crown and spent some time in the hospital – 10 years in fact (head injuries are serious, after all he broke his crown).
Click Jill’ name appears
Click – Jack’s name appears
Click again – Jill’s info comes out.
Jill got a job and began investing right away. She was 21. She put $2,000 in an IRA for the first 9 years she was working for a total of $18,000. Then she quit working after she got married to raise her family.
Click – Jack’s Data comes out
Jack started slower, set back by his time in the hospital. So he started at 31 and put $2,000 away in an IRA for 35 years for a total of $70,000.
Now they are 65 and ready to start cashing in on their IRA’s. Who has more money?
Click again – Jack’s total comes up (over $470,000).
Click again – Jill’s total comes up (almost $580,000).
Click again – or over $109,000 more than Jack – the cost of waiting.
Now, while Jill does have more money even though she put in less money, this also shows that it is never too late to save or invest. After all, Jack still has over $470,000!
So how do you get started – well you start by living within your means...
$470,249 22 30 31 65
Age
$2,000 per Year at 9%

28. Live Within Your Means Spend Less Than You Earn
Save What You Do Not Spend
Invest
Take a break to hand out mints now
Slide Income & Expenses – no animation
Explain what Living within your means is:
Spending Less Than You Earn
Saving What You Do Not Spend (saving is a habit)
Investing What You Save
You must categorize yourself - Do you:
Spend more than you earn?
Spend what you earn?
Save?
HAND OUT MONEY MANAGEMENT QUIZ and pass out Mints
Go thru quiz. Discuss.
Now ask what is the one thing you can do to live within your means? Answer - To live within your means you must practice “DELAYED GRATIFICATION” Hold up the mint you did not eat. Ask who ate their mint. These people practiced instant gratification.
Now, in order to live within your means, go back to your earnings and spending analysis. If you have no analysis start now – where to begin? - start with record keeping. You already have the forms to measure income and expenses.
See Handout

29. Record Keeping Keep all records in one place & organized
Decide which family member has the major responsibility - Be prepared for emergencies
Set a specific time to handle your filing and records maintenance
Slide 29 - Source: Managing Your Money Lesson 6 – Keeping Records in Order
Keep all records in one place & organized – Make it easy to get to them and to maintain them, don’t just throw the information in a box
Decide which family member has the major responsibility – But everyone needs to understand how the system works and cooperate
Set a specific time to handle your filing – establishing a regular routine will save time and effort
Why keep records?
Means of tracking expenses, planning for expenses, and to see if the plan is working
Makes it easier to find information when you need it
Provides security for hard to replace items
Provides proof of transactions
Helps in emergency situations
Helps someone else if you are not available
Proves ownership in a lawsuit, inheritance or property fight
Helps with property settlement in a divorce
Sample records to keep:
Home ownership or home rental related
Home improvements
Income tax related
Insurance papers
Sales receipts for major purchases
Pay stubs

30. Summary Clarify values Set goals Develop and implement plan
Keep records, & review plan
Make adjustments as needed
Diploma
Certified Financially Responsible Person
Slide 30
Summarize the various points from the presentation – hit the one’s you are believe are most important and from the feedback participants provided during the presentation

31. Determine your financial health. Call Virginia Cooperative Extension
What’s Next for You?
Determine your financial health.
Get an assessment!
Call Virginia Cooperative Extension
Slide 31
So…what is next for you? Get an assessment or do it yourself. Remind participants about Virginia Cooperative Extension

32. An “extension” of Virginia Tech & Virginia State Universities…
We Provide
Education
Guidance
Confidentiality
We Don’t Provide
Investment Services
Legal or Marital Advice
Financial Assistance
Slide 32 – Explain our services

33. 4 Components of Discipline
Some Final Thoughts
4 Components of Discipline
Delayed gratification
Acceptance of responsibility
Dedication to truth
Balance
Slide 33
Successful financial management requires discipline Basically there are four components of discipline . (A Road Less Traveled, Scott Peck)
Delayed gratification
We have already experienced and discussed this aspect of discipline
Acceptance of responsibility
This simply means that wherever we find ourselves financially it is our responsibility and no one else’s if we wish to improve it.
Dedication to truth
This component means above all that we do not lie to ourselves. For example, putting down incorrect information on assessment forms hurts no one but ourselves, since it is our assessment. Only by knowing the truth about our financial situation can we help ourselves to improve it.
Balance
Balance is simply the ability to say no. Sometimes this is the most difficult component of all.