1. Section 1Organizing Financial Records Budgeting How do your spending options fit: Day-to-day financial activities necessary to get the most from one’s money money management

2. Common financial documents that are helpful for money management Section 1Organizing Financial Records Pay Stubs Automobile Titles Bank Statements Birth Certificates Broker Reports Marriage License Credit Card Statements Tax Forms

3. Organized Financial Documents = Important! Section 1Organizing Financial Records Budgeting What can an organized system do for you? Determine your current financial status Pay your bills on time Complete required tax reports Plan for the future Make sound financial decisions related to investments

4. Storing Your Financial Documents Budgeting Home Files Safe-Deposit Box Home Computer safe-deposit box a small, secure storage compartment that can be rented in a bank

5. Financial documents will help you determine your:  assets owned items of value  liabilities debts that one owes  net worth the difference between the amount you own and the debts you owe

6. Section 2Personal Financial Statements Budgeting Categories of assets Liquid Assets Real Estate Personal Possessions Investment Assets liquid assets cash and items that can be quickly converted to cash real estate land and any structures that are on it

7. Section 2Personal Financial Statements Budgeting Types of Liabilities Current Liabilities Long-Term Liabilities Insurance premiums Current taxes Utility bills Medical bills Mortgage Loans Home improvement loans Vehicles College tuition Bills Loans To be paid longer than a year Due within a year

8. Section 2Personal Financial Statements Budgeting discretionary income money left over after paying for essentials

9. Budget Section 3Budgeting for Financial Goals Budgeting A plan for spending and investing money

10. Steps to Develop a Budget Section 3Budgeting for Financial Goals Budgeting 1. Set Your Financial Goals 2. Estimate Your Income 3. Budget for Unexpected Expenses 4. Budget for Fixed Expenses 5. Budget for Variable Expenses 6. Record What You Spend 7. Review Spending and Saving Patterns

11. Steps to Develop a Budget Section 3Budgeting for Financial Goals Budgeting 4. Budget for Fixed Expenses 5. Budget for Variable Expenses Fixed expense An expense that recurs and is the same amount every month Variable expense An expense that recurs but is not the same amount every month

12. Budgeting Sample budget form for teens