Question: Money Management

Answer: Day to day financial activities necessary to manage current personal economic resources while working toward long term financial security.

Daily spending and savings decisions are central to financial planning

• Must be coordinated with needs, goals, and personal situations.

• Question: Asset

• Answer: Cash and other tangible property with monetary value.

• Question: What are the 3 Components of Money Management activities?

• Answer: 1. Storing and maintaining personal financial records and documents.

• 2. Creating personal financial statements

• 3 Creating and implementing a plan for spending and saving (budgeting).

• Question: What a System for Personal Financial Records do:

• Answer: Provides a basis for:

• 1 Handling daily business affairs, such as bill paying.

• 2 Planning and measuring financial progress.

• 3 Completing required tax reports.

• 4 making effective investment decisions.

• 5 Determining available resources for current and future buying.

• Question: Records in Your Home File

• Answer: 1 Personal and Employment records

• 2 Money management records

• 3 Tax records

• 4 Financial services records

• 5 Credit records

• 6 Consumer purchase and auto records

• 7 Housing records

• 8 Insurance records

• 9 Investment records

• 10 Estate planning and retirement records

• Question: Safe Deposit Box

• Answer: A private storage area at a financial institution with maximum security for valuables.

• Question: What types of financial records and documents should be kept in a Safe-Deposit Box?

• Answer:

• Question: What types of financial records and documents should be kept in a Computer?

• Answer: - Current and past budgets

• - Summary of checks written and other banking transaction

• - Past Income Tax returns

• - Account summaries, performance results of investments

• - Digital versions of wills, estate plans and other documents.

• Question: Balance Sheet

• Answer: A financial statement that reports what an individual or family owns and owes: also called net worth statement or statement of financial position.

• Question: Items of Value minus ( - ) Amount Owed

• (what you own) (what you owe)

• Answer: = Net Worth

• (your wealth)