1. 1 Budgeting and Cash Flow Management

2. 2 Comparison of Statements PAST Income and Expense Statement (Cash Flow Statement) PRESENT Balance Sheet FUTURE Budget

3. 3 Six Phases of Budgeting Set GoalsOrganizeDecideImplementControlEvaluate Achieve success in financial goals Monitor, review, revise after each period.

4. 4 Setting long-term goals—anything more than 12 months away. Developing short-term goals from long-term goals Prioritizing goals Making goals time and dollar specific Financial Goal-Setting Phase of Budgeting

5. 5 Select recordkeeping format Use cash or accrual basis Select budget classifications Select time periods Organization Phase of Budgeting

6. 6 Inflation and other economic factors Realistic budget estimates Reconciling initial estimates Decision-Making Phase of Budgeting

7. 7 Implementation Phase of Budgeting Recording actual income/expenditures Managing with a cash-flow calendar Utilizing a revolving savings fund Calculating time-period totals

8. 8 Control Phase of Budgeting Stay on target Check progress Be alert to problems or errors REASONS FOR BUDGET CONTROLS:

9. 9 Control Phase of Budgeting Use a checking account Employ a credit control sheet Check accuracy Monitor unexpended balances BUDGET CONTROL MEASURES:

10. 10 Control Phase of Budgeting Justify exceptions Use the envelope system Employ subordinate budget BUDGET CONTROL MEASURES:

11. 11 Evaluation Phase of Budgeting Compare estimated and actual amounts Decide how to handle balances Assess progress toward goals

12. 12 Discussions About Money Unilateral Shared Divided MONEY MANAGEMENT AND FINANCIAL DECISION MAKING FOR COUPLES:

13. 13 Discussions About Money More income/more expenses Reliance on “second” income Discretionary account for each individual COMPLICATIONS FOR DUAL-EARNER HOUSEHOLDS:

14. 14 Discussions About Money Child support Alimony His/Her/Our children His/Her funds COMPLICATIONS BROUGHT BY REMARRIAGE:

15. 15 Freedom Trust Self-esteem Guilt Indifference Envy Security/Comfort Power/Control Discussions About Money EMOTIONS AND MONEY:

16. 16 Get to know yourself and partner Learn to manage disagreements Use “I” not “you” statements Focus on commonalties Be honest Talking About Financial Matters

17. 17 Develop Money Sense in Children Give access to money Give freedom to save and spend Teach responsibility Allow freedom to fail Talk about family finances

18. 18 Your Personal Spending Style Givers Me-spenders Big-spenders Tightwads Normal People

19. 19 Couples Should Discuss Personal Finances Child bearing Employment Food and clothing Housing and transportation Recreation and vacations Future security and debt