1. Family Finance

2. Family Finance E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL
www:
Mobile:
5 meetings + 1 exam (test)
Next meeting: 11th 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. The aim of family financial management?
Maximization of family wealth:
First: how we calculate realization of the general aim in nonfamily financial management?

4. 10 steps to Value CR Capital structure Operating Cycle FCF forecasting
Assets AP
Capital invested
Capital structure
FCF forecasting
IRR
Cost of Capital (CC)
∆ V

5. 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?

6. Create himself or buy? Two + four family (2p + 4 ch).
One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent.
Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family.
1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent.
For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food.
Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

7. Create himself or buy? Two adults family (2a).
One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent.
Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family.
1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent.
For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food.
Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

8. Create himself or buy? Two + one + seven family (2p + 1g + 7 ch).
One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent.
Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family.
1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent.
For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food.
Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)