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Family Finance

Family Finance. E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 11 th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001.

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Family Finance

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  1. Family Finance

  2. E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 11th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001. Millar R., A Complete Guide to Family Finance, Kogan Page Publishers 2004. Israelsen C. L. , R. O. Weagley, Personal & Family Finance Workbook, Kendall Hunt Pub 2006. Family Finance

  3. The aim of family financial management? • Maximization of family wealth: • First: how we calculate realization of the general aim in nonfamily financial management?

  4. 10 steps to Value • CR • Operating Cycle • Assets • AP • Capital invested Capital structure FCF forecasting IRR Cost of Capital (CC) ∆ V

  5. Family Finance cases: • Create himself or buy? (home products, home food or in restaurants, who should repair a tap, husband or plumber (tap expert), hire a maid? etc. • Child in home or in kindergarden? • (Homeschooling) Child in home or in school? • Car: buy older but without the credit or a new but with credit? • How many cars in a family? • House or a flat? Why? • A garden or a free time with fruits from a hipermarket? • What kind of car? Which one?

  6. Create himself or buy? • Two + four family (2p + 4 ch). • One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. • Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. • 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. • For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

  7. Create himself or buy? • Two adults family (2a). • One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. • Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. • 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. • For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

  8. Create himself or buy? • Two + one + seven family (2p + 1g + 7 ch). • One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. • Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. • 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. • For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

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