PART 2

1. PART 2 On Your Own

2. Family Financial Management: PART 2 Performance Outcomes In Part 2 of this simulation, you will learn to: 1. Determine a single person’s net worth. 2. Plan a realistic budget for a single person. 3. Record a person’s daily financial activities in a record book or in a computer file. 4. Organize the receipts, forms, and other paperwork involved in financial activities. Performance Outcomes are continued on the next slide.

3. Family Financial Management: PART 2 Performance Outcomes 5. Maintain a checking account, including making deposits, writing checks, and balancing a checkbook register. 6. Use an automated teller machine (ATM) and a debit card. 7. Make smart purchasing decisions that fit within a person’s budget. 8. Evaluate a person’s financial activities at the end of each month.

4. Family Financial Management: PART 2 Meet Tyra M. Burns • Tyra Burns is 24 years old. • She lives alone in a rented apartment. • Tyra works full time as the assistant manager of the Water Point Grille. • She earns $32,400 a year.

5. Family Financial Management: PART 2 Figuring Out Net Worth • Assets—what you own • Liabilities—what you owe • Net Worth—the dollar value of what you own minus the sum of your all your debts Assets – Liabilities = Net Worth

6. Family Financial Management: PART 2 Statement of Net Worth

7. Family Financial Management: PART 2 Statement of Net Worth List assets and their cash value.

8. Family Financial Management: PART 2 Statement of Net Worth Add the amounts and enter the sum.

9. Family Financial Management: PART 2 Statement of Net Worth List liabilities and their cash value.

10. Family Financial Management: PART 2 Statement of Net Worth Add the amounts and enter the sum.

11. Family Financial Management: PART 2 Statement of Net Worth Calculate net worth by subtracting total liabilities from total assets.

12. Family Financial Management: PART 2 Statement of Net Worth Add total liabilities and net worth.

13. Family Financial Management: PART 2 Tyra's Assets • Checking account, $740.12 • Savings account, $69.65 • Savings bond, $200.00 • Current value of her used car, $3,700.00 • Value of her personal items, $1,200.00 • Cash, $90.00

14. Family Financial Management: PART 2 Tyra's Liabilities • Amount she owes her parents for her car, $1,400.00 • October rent, $450.00 • Tri-County Gas & Electric bill, $42.53 • Maplewood Telephone Company bill, $35.95

15. Family Financial Management: PART 2 Statement of Net Worthfor Tyra Burns

16. Family Financial Management: PART 2 Budget Worksheet

17. Family Financial Management: PART 2 Planning Tyra’s Budget • Monthly Income • Monthly Expenses

18. Family Financial Management: PART 2 This period Year-to-date Tyra’s Monthly Income Gross pay Deductions Net Pay Gross pay – Deductions = Net Pay

19. Family Financial Management: PART 2 Savings/Debt Payoff Home Food/Sundries Personal Transportation Entertainment Miscellaneous Health Care Expense Categories

20. Family Financial Management: PART 2 Savings/Debt Payoff Transportation Home Entertainment Total expenses should be the same as net pay. Miscellaneous Food/Sundries Health Care Personal Budget Worksheetfor Tyra Burns

21. Family Financial Management: PART 2 Recording Tyra’s Transactions • Use the Financial Record Book to record every transaction in one master record. • A transaction is any event that involves money coming in or going out. • To see how this works, you are going to record all of Tyra’s transactions for October.

22. Family Financial Management: PART 2 Deposit column Budget categories Add the deposit to the amount in the Balance column. The result is the current balance—the total amount in the account after the transaction. Subtract the payment from the amount in the Balance column. Again, the result is the current balance—the total amount in the account after the transaction. Financial Record Book

23. Family Financial Management: PART 2 Date Fee Balance Check Number or other notation Description of transaction Payment or debit Deposit or credit Checkbook Register

24. Family Financial Management: PART 2 Endorsement for deposit only Endorsement area Back of check Paycheck Endorsed for Deposit Only

25. Family Financial Management: PART 2 Filled-Out Deposit Ticket Account holder’s name and address Amount of checkto be deposited Date Total amount to be deposited Account number

26. Family Financial Management: PART 2 Check number Account holder’s name and address Date Amount using numerals Payee Amount in words Purpose of the check Signature Account number Write a Check

27. Family Financial Management: PART 2 Card Reader Slot Receipt Printer Selection Buttons Speaker Keypad Deposit Slot Cash Dispenser Display Screen Parts of an Automated Teller Machine (ATM) • All ATM machines are similar. • They all have the eight parts shown here.

28. Family Financial Management: PART 2 JUMPSTART • Standard: Develop a plan for spending and saving. • It is never too early to develop a plan for spending and saving. • You can start planning by thinking about where you get money and how you spend it.

29. Family Financial Management: PART 2 Special Topic Readings on the Data CD Special Topic 4: How a Budget Puts You in Control Special Topic 5: Where Does All the Money Go? Special Topic 6: Saving for Something Special