1. Chapter 8 Budgets and Financial Records
MYPF Chapter 08
11-Sept-2001
Chapter 8 Budgets and Financial Records
Budgeting and Record Keeping
Legal Documents and Filing Systems
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2. Lesson 8.1 Budgeting and Record Keeping
Describe and prepare personal budgets.
Explain the purpose of record keeping.
Prepare a personal net worth statement and a personal property inventory.
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3. Importance of Financial Planning
Disposable income
Financial plan
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4. Preparing a Budget Estimate your income. Decide how much to save.
Estimate your expenses.
Balance your budget.
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5. 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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6. Monthly Budget Fixed expenses Variable expenses
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7. Personal Records Records of income and expenses Net worth statement
Personal property inventory
Tax records
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8. Net Worth Statement Assets – Liabilities Net worth
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9. Personal Property Inventory
Year Purchase Approximate
Item Purchased Price Current Value
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10. 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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11. Types of Contracts Express contracts Implied contracts Oral Written
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12. Elements of an Enforceable Contract
Agreement
Consideration
Contractual capacity
Legality
Genuine assent
Legal form
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13. 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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14. 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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15. Warranties Guarantee Limited warranty
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16. Filing Systems for Personal Records
Paper filing system
Electronic record keeping
Spreadsheet
Database
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17. Home Filing System Medical Warranties Insurance Utilities Household
Travel
Entertainment
Taxes
Automobile
Subscriptions
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