Household/Family Financial Management

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