2. Money Management Strategy
Chapter 12
What money management techniques can you employ to achieve your future financial goals?

3. 12 Money Management Strategy
Chapter 12
Organizing and maintaining a personal financial plan are essential to budgeting for future financial goals.

4. personal financial statement net worth assets wealth liquid assets
Money Management Strategy
Chapter 12
money management
safe-deposit box
personal financial statement
net worth
assets
wealth
liquid assets
real estate
market value
liabilities
insolvency
cash flow
income
take-home pay
discretionary income
surplus
deficit
budget
budget variance

5. Money Management Strategy
Chapter 12

6. Explain the benefits of keeping financial records and documents.
Money Management Strategy
Chapter 12
Section 1
Organizing Financial Records
Discuss the relationship between opportunity costs and money management.
Explain the benefits of keeping financial records and documents.
Describe a system to maintain personal financial documents.

7. Organization of Financial Documents
Money Management Strategy
Chapter 12
Section 1
Organizing Financial Records
Organization of Financial Documents
Financial Documents
Automobile Titles
Pay Stubs
Birth Certificates
Bank Statements
Marriage License
Broker Reports
Credit Card Statements
Tax Forms

8. Organization of Financial Documents
Money Management Strategy
Chapter 12
Section 1
Organizing Financial Records
Organization of Financial Documents
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.

9. Storing Financial Documents
Money Management Strategy
Chapter 12
Section 1
Organizing Financial Records
Storing Financial Documents
Home Files
Safe-Deposit Box
Home Computers

10. 12 Money Management Strategy Section 1 Organizing Financial Records
Chapter 12
Section 1
Organizing Financial Records
How are the roles of maintaining financial records and managing opportunity costs in a sound financial plan similar and different?
Managing opportunity costs and maintaining financial records are both critical to a sound financial plan. Making sound financial decisions to get the most out of your money is an important step. In order to make and track these decisions you need to maintain financial records to keep track of your money and determine your financial position.

11. Balance Sheet Assets Liabilities
Liquid
Real Estate
Personal Possessions
Investments
Liabilities
Current
Long-term
The difference is Net Worth (assets minus liabilities)

12. Personal Balance Sheet
Money Management Strategy
Chapter 12
Section 2
Personal Financial Statements
Personal Balance Sheet
Reduce Expenses
How to Increase Your Net Worth
Reduce Spending and Debts
Increase Your Savings
Increase Your Investments

13. Cash Flow
Income
Expenses
Variable
Fixed

14. Cash Flow Statement Steps:
Record all your sources of income.
Record all your expenses.
Calculate your net cash flow.

15. Describe a personal balance sheet and cash flow statement.
Money Management Strategy
Chapter 12
Section 2
Personal Financial Statements
Describe a personal balance sheet and cash flow statement.
Develop a personal balance sheet and cash flow statement.

16. 12 Money Management Strategy Section 2 Personal Financial Statements
Chapter 12
Section 2
Personal Financial Statements
How are a personal balance sheet and cash flow statement similar? How are they different? What role does each play in the development of a personal financial plan?
A cash flow statement and a personal balance sheet both list expenses/liabilities and provide a snapshot of your financial situation. However, a cash flow statement does not break down all of your liabilities. It focuses on your monthly payments. A personal balance sheet does not show your income only the balance in your accounts.

17. Identify the steps to create a personal budget.
Money Management Strategy
Chapter 12
Section 3
Budgeting for Financial Goals
Identify the steps to create a personal budget.
Discuss the advantages of increasing your savings.

18. Steps to Developing a Budget
Money Management Strategy
Chapter 12
Section 3
Budgeting for Financial Goals
Preparing a Budget
7. Review Spending and Saving Patterns
Steps to Developing a Budget
6. Record What You Spend
5. Budget for Variable Expenses
4. Budget for Fixed Expenses
3. Budget for Unexpected Expenses
2. Estimate Your Income
1. Set Your Financial Goals

19. Characteristics of an Effective Budget
Money Management Strategy
Chapter 12
Section 3
Budgeting for Financial Goals
A Successful Budget
Characteristics of an Effective Budget
Carefully Planned
Easily Accessible
Practical
Flexible

20. Increasing Your Savings
Money Management Strategy
Chapter 12
Section 3
Budgeting for Financial Goals
Increasing Your Savings
Savings Strategies
Pay Yourself First
Use Payroll Savings
Spend Less

21. 12 Money Management Strategy Section 3 Budgeting for Financial Goals
Chapter 12
Section 3
Budgeting for Financial Goals
Explain why it is sometimes difficult for people to increase their savings. How will increasing the amount you put in savings affect your budget?
It is difficult to resist the temptation to spend any extra money each month. If you increase your savings you may need to adjust spending in another area such as your variable expenses.

22. Balance of Trade 12 Money Management Strategy
Chapter 12
Balance of Trade
What could a surplus in the balance of trade mean?
Balance of trade is determined by subtracting total imports from total exports over a period of time.
Strong Manufacturing Base
High Tariffs
Overseas Demand for U.S. Products
Less Disposable Income for Consumers

23. Money Management Strategy
Chapter 12

24. Money Management Strategy
Chapter 12

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