1. Money Management Strategies
CHAPTER 5

2. Organizing Financial Records
CHAPTER 5 SECTION 1

3. What kinds of financial records do you keep? Brainstorm in your notes

4. Money Management
Day-to-day financial activities necessary to get the most from your money.
Money trade-offs

5. Financial Documents
First step in effective money management is to organize your financial documents.
Benefits:
Financial status
Pay your bills on time
Tax reports
Future planning
Investing decisions

6. Storing Financial Documents
Locate your documents and sort them into categories such as payroll stubs, savings account, checking account, bills, etc.
Label and file each document
Maintain filing discipline

7. Safe-Deposit Box
A small, secure storage compartment that you can rent at a bank.

8. Chapter 5.1 Review Questions
Textbook Page 125
#1-6
Due at the end of class
When finished – write down the key words and definitions from Ch. 5.2

9. Personal Financial Statements
CHAPTER 5 SECTION 2

10. Personal Balance Sheet
Allows you to have a complete look at your financial situation.
Step 1: Determine Assets
Step 2: Determine Liabilities
Step 3: Calculate Net Worth
Step 4: Evaluate Financial Situation

11. Net Worth Example
What is your net worth is you have $4,000 in assets and $1,250 in liabilities?
$4,000 - $1,250 = $2,750

12. Document Detective
Personal Balance Sheet
Page 139
#1-7

13. Cash Flow Statement
Movement of cash in and out of your wallet and/or bank account.
Step 1: Record your income
Step 2: Record your expenses
Step 3: Calculate your net cash flow

14. Chapter 5.2 Review Questions
Textbook Page 134
#1-6
Due at the end of class

15. Budgeting for Financial Goals
CHAPTER 5 SECTION 3

16. Budget
A plan for spending and investing your money to meet your wants and needs.
Step 1: Set your financial goals
Step 2: Estimate your income
Step 3: Budget for unexpected expenses
Step 4: Budget for fixed expenses
Step 5: Budget for variable expenses
Step 6: Record spending

17. Budget Variance
The difference between the budget and the actual amount spent.

18. Chapter 5.3 Review Questions
Textbook Page 143
#1-6
Due at the end of class