1. Chapter 8 Standard FIN-FL-4
MYPF Chapter 08
11-Sept-2001
Chapter 8 Standard FIN-FL-4
Develop and evaluate a spending and savings plan while applying rational decision making to personal spending and saving choices.
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2. Intro Wants and needs. Unlimited resources.
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3. Importance of Financial Planning
Disposable income
The money you have left to spend or save after taxes have been paid.
Financial plan
Is a set of goals for spending, saving, and investing the money you earn.
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4. Financial Planning Having a financial plan helps you:
Determine and evaluate options for your money
Prioritize your options so your money goes as far as possible.
Avoid careless and wasteful spending.
Organize your financial resources so you can achieve your financial goals.
Avoid money worries by planning your savings, spending and borrowing to live within your income.

5. Preparing a Budget
Budget is a spending and savings plan based on your income and expenses.
Estimate your income. Monthly, semi monthly/biweekly, weekly
Revenue
Decide how much to save.
Always take out savings first!! 10%
Estimate your expenses.
Balance your budget.

6. Simple Budget Income Work $320 Allowance 20 Lunch money 40 Expenses
Lunches $ 80
Supplies 20
Snacks 40
Entertainment 120
Total income $380
Total expenses $280
Savings
To credit union $100
Total expenses plus savings $380
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7. Monthly Budget Fixed expenses Variable expenses
The cost stays the same each month
Ex Rent, mortgage, car note
Should not be more than 50-60% of income
Variable expenses
The cost varies
Ex Groceries, gas

8. Personal Records Records of income and expenses Net worth statement
Personal property inventory
Tax records
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9. Net Worth Statement Assets – Liabilities Net worth
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10. Personal Property Inventory
Year Purchase Approximate
Item Purchased Price Current Value
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11. Lesson 8.2 Legal Documents and Filing Systems
Discuss the elements of legal contracts and your responsibilities regarding contracts.
Describe negotiable instruments and warranties.
Discuss ways to set up a filing system for personal records.
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12. Contracts Is a legally enforceable agreement between two more parties.
Common legal agreements are credit plans, mortgages and rental agreements.
Express contracts
Oral- verbal
Written
Implied contracts
Ex you have agreed to certain things when riding a bike on the streets.. Such as obey traffic laws.

13. Elements of an Enforceable Contract
Agreement
Consideration
Anything of value exchanged as part of the contract.
Contractual capacity
Legal ability

14. Elements of an Enforceable Contract
Legality
Must be lawful
Genuine assent
is a complete agreement between two competent parties
Legal form

15. Consumer Responsibilities in Agreements
Understand agreement.
Keep a copy of the agreement.
Be sure the agreement is dated correctly.
Be sure all blank spaces are filled in or marked out.
Be sure all terms agreed upon are written clearly.
Be sure all dates, amounts, and other numbers are correct and clearly written.
Be sure proper disclosure is made by the seller.
Be sure all cancellations and adjustments are made in accordance with the contract.
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16. Negotiable Instruments
Must be in writing and signed by the maker
Must contain an unconditional promise to pay a definite amount of money
Must be payable on demand or on a fixed or determinable future date
Must be payable to the order of a particular person or to the holder of the note
Must be delivered to the payee
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17. Warranties Also called Guarantee
All products contain implied warranties, and some also have written warranties.
Will not protect against normal wear and tear.
Limited warranty

18. Filing Systems for Personal Records
Paper filing system
Electronic record keeping
Spreadsheet
Database
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19. Home Filing System Medical Warranties Insurance Utilities Household
Travel
Entertainment
Taxes
Automobile
Subscriptions
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