1. Learning Objective # 1
Recognize relationships among financial documents and money management activities.

2. Planning for Successful Money Mangement
LO#1
Planning for Successful Money Mangement
Money Management: Day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security.
Daily spending and saving decisions are at the centre of financial planning
Coordinate these decisions with your needs, goals and personal situation
Maintaining financial records and planning your spending are essential to success

3. Opportunity Costs & Money Management
LO#1
Opportunity Costs & Money Management
Spending money reduces the amount you can save and invest.
Saving and investing reduces the amount you can spend now.
Buying on credit ties up future income.
Using savings for purchases results in lost interest earnings - savings can’t be used for other purposes.
Comparison shopping can save you money but uses up valuable time

4. Major Money Management Activities
LO#1
Major Money Management Activities
Store and maintain personal financial records and documents
Create personal financial statements (balance sheets and cash flow statements or income and outflow
Create and implement a plan for spending and saving (budgeting)