PowerPoint presentation on the subject of managing family finances. Presented at Southwest Keys Boys & Girls Club of Austin, TX. in conjunction with Financial Fitness Greater Austin; sponsored by University Federal Credit Union.

1. Provided by Ron Ratliff, CPA7703 North Lamar Blvd., Suite 128 Austin, TX 78613 (512) 206-4228 info@ronratliffcpa.com www.ronratliffcpa.com Money Matters: Keeping Track of Your Money

2. Granddad’s Coin Purse

3. Money Matters – How? Reaching milestones Buying your first home Getting married Becoming a parent Starting or buying a business Retirement Establish healthy credit Character Capacity Collateral Other

4. How does it matter to you? Your lifestyle – the ability to live like you want Your peace of mind – you’re prepared for difficult times Your retirement – you know what you want and you’re prepared to take advantage of opportunities Your children’s education – a good education is the single most valuable gift a parent can give a child

5. Relating With Money

6. In his book, Making Love Last Forever, Gary Smalley identifies 5 key differences between men and women: Men love to share facts, women love to express feelings. Men connect by doing things, women connect by talking. Men tend to compete, women tend to cooperate. Men tend to be controlling, women tend to remain agreeable. Men tend to be independent, women tend to be interdependent. 5 Behavioral Differences

7. The Emergency Fund: Men – “Boring…not sophisticated enough.” Women – “The most important key to our financial plan.” Shopping: Men get good deals by negotiating. Women get good deals by hunting. Financial Problems: Men lose self-esteem, because with men money usually represents a scorecard. Women face fear or even terror, because usually with women money represents security. Men, Women & Money:

8. Keeping Track of Your Money The Simplified Spending Plan A plan for every dollar before it arrives Keeping a record Write it down! Don’t over-complicate things – just be consistent Support one another Agree on a threshold that neither of you will spend without discussing it with the other Lock away your credit cards – stop digging yourselves deeper in debt!

9. Simplified Spending Plan Income (Take-Home) Expenses ZERO

10. Recurring Costs Fixed & Recurring Costs

11. Envelope Expenses Variable Costs

12. Plan to Spend ZERO

13. Typical Family Expenditures

14. Always tell the absolute truth. Use the power of cash. Cash is visual. Cash is emotional. Cash is immediate. Be prepared to walkaway! Shutup! Say “That’s not goodenough.” Avoid the “Goodguy, Badguy” routine. Ask for the “freetoaster”. 7 Basic Rules of Negotiation

15. Develop POP – (POWER OVER PURCHASES) Wait overnight before making a purchase Carefully consider your motive Never buy anything that you do not fully understand (KISS) Keep the “Opportunity Cost” in mind Seek wise counsel Maintaining Control over Purchases

16. Are you a spender or a saver? How do you know this? What advantages do singles have when it comes to finances? Disadvantages? In a marriage, why should a spending plan be agreed upon by both partners? Discussion Questions

17. Questions?