1 / 27

Household/Family Financial Management

Household/Family Financial Management. Steps to Managing Money. The indispensable first step to getting the things you want out of life is this: decide what you want. --Ben Stein. Understand your Spending Habits. Develop a Spending Plan. Get ready…. Get Organized

mercer
Download Presentation

Household/Family Financial Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Household/Family Financial Management

  2. Steps to Managing Money The indispensable first step to getting the things you want out of life is this: decide what you want. --Ben Stein

  3. Understand your Spending Habits

  4. Develop a Spending Plan

  5. Get ready….. • Get Organized • Find your papers and bills • Tools can help- Record Keeping • Gather Information • Determine how you are spending and saving • May need to track expenses • Make decisions and set priorities

  6. How to Get Started…. Motivation- the first HARD step. • Pull out all the papers and begin to sort them. • Discard any unnecessary papers (shred) • Decide who will take the lead on keeping these papers organized and safe. • Schedule a regular time each week to work on the family records.

  7. Where to Keep the Records • Home Safe • Safe Deposit Box • Home File • Your Wallet

  8. Personal and Family Records to Keep • Names, addresses, and phone numbers of relatives • Names, addresses, and phone numbers of advisors • Location of valuable records • Location of safe deposit box and key • Location of CD’s, videos and photos of home inventory. • Computer passwords and file names

  9. Personal and Family Records to Keep-- Continued… • Location and identification of valuables • Insurance Policies • Health Records • Education Records • Employment Records

  10. Property Information to Keep • Property Deeds • Motor Vehicle Records • Equipment warranties, guarantees and manuals • Records of home purchase and improvements • Burial plots • Other

  11. Financial Information to Keep • Earning Records • Account Records from financial institutions • Credit & Debit card information • Personal Tax Returns • Retirement Benefits • Notes and Money Owed

  12. Financial Accounts • Current Files • Bank Statements and Cancelled Checks • Bills to be Paid • Credit Card Statements • Permanent Files • Credit Records • Pension or Retirement Information • Contracts, Notes and Debts • Investments

  13. Legal Records to Keep • Official Certificates • Birth, Marriage, Death, etc. • Current Estate Planning Information • Wills, trusts, list of non-titled property • Advance directives and Powers of Attorney • Social Security Card • Passport

  14. How Long to Keep Records • Tax Records • IRS says at least 3-6 years • Consider keeping them 7-10 years • Bank Statements • 7 years • Cancelled Checks • 1 Year, unless it is for Home Improvement, then keep it for 6 years • Credit Card Statements • 1 Year, unless it is for a deductible expense, or for a major purchase, keep much longer

  15. Household Inventory • Reasons for a household inventory: • Amount of insurance to purchase • Basis for filing insurance claims or tax losses • Evidence of ownership • Value of possessions- net worth statement

  16. Net Worth • A snapshot of how much you are worth in dollars and cents • Assets – Liabilities = Net worth • Assets: Cash, investments, personal assets, use assets • Liabilities: Loans on assets, i.e. mortgage or car note and other debts, i.e. credit cards

  17. What does money mean to you? Satisfaction Security Security Success Status Power Envy Security Control

  18. People Value Money Differently

  19. Financial Goals Give Us: • Organization • Direction • Decision-making • Control • Predictions

  20. Emergency Fund

  21. Sources of Household/Personal Income • Salary & Tips • Social Security • Retirement • Child Support • TANF • Loans • Tax Refunds • Government Assistance Programs

  22. Household Expenses • Monthly Expenses • Fixed • Variable • Periodic Expenses

  23. Periodic Expenses

  24. DEBT

  25. Financial Goals

  26. Credit Reports • One free per year • Equifax 800.437.4619 • Experian 888.397.3742 • Transunion 800.916.8800 • Annualcreditreport.com • Check carefully • Dispute inaccurate information

  27. Financial Management is a continuous process which requires periodic adjustments

More Related