The document discusses personal money management and financial planning. It covers creating a personal balance sheet and cash flow statement to track assets, liabilities, and income/expenditures. It also discusses budgeting, including purposes of a budget, categories to include, and characteristics of effective budgets. Finally, it outlines the financial planning process, including developing goals, creating a plan, implementing it, and reviewing it over time.

1. Money Management and Financial Planning 16-1 Personal Financial Statements 16-2 Budgeting Techniques 16-3 Your Financial Future 16

2. LESSON 16-1 Personal Financial Statements Goals Explain the basics of money management. Create a personal balance sheet. Develop a personal cash flow statement.

3. Key Terms money management personal assets net worth cash flow statement

4. MONEY MANAGEMENT BASICS Refers to the day-to-day financial activities associated with using limited income to satisfy your unlimited needs and wants Involves getting the most for your money through careful planning, saving, and spending Involves making and using a plan for spending

5. SUCCESSFUL MONEY MANAGERS Set goals Make wise decisions Buy wisely Live within their income

6. >> C H E C K P O I N T What are some characteristics of a wise money manager?

7. PERSONAL BALANCE SHEET Assets Liabilities Net Worth

8. SAMPLE PERSONAL BALANCE SHEET

9. >> C H E C K P O I N T What are three main categories of a personal balance sheet?

10. PERSONAL CASH FLOW STATEMENT Cash inflows Cash outflows Compare inflows and outflows

11. SAMPLE PERSONAL CASH FLOW STATEMENT

12. >> C H E C K P O I N T What do cash outflows represent?

13. LESSON 16-2 Budgeting Techniques Goals Identify purposes of a budget. Describe steps for preparing a budget. Describe characteristics of successful budgeting.

14. Key Terms fixed expenses variable expenses allowance budget variance

15. BUDGET ACTIVITIES Live within your income Achieve your financial goals Buy wisely Avoid credit problems Plan for financial emergencies Develop good money management skills

16. >> C H E C K P O I N T What are the main purposes of a budget?

17. THE BUDGET PROCESS Set financial goals Plan budget categories BUDGET CATEGORIES Savings Food Clothing Household Transportation Health and personal care Recreation and education Gifts and contributions Maintain financial records Evaluate your budget

18. SAMPLE FAMILY BUDGET

19. >> C H E C K P O I N T What are eight commonly used budget categories?

20. CHARACTERISTICS OF AN EFFECTIVE BUDGET Must be realistic Should be flexible Should be evaluated regularly Must be well planned and clearly communicated Should have a simple format

21. BUDGETING FORMATS Software program Handwritten Checkbook Unwritten

22. SAMPLE INCOME AND EXPENSE RECORD

23. >> C H E C K P O I N T What are five characteristics of an effective budget?

24. LESSON 16-3 Your Financial Future Goals Describe the financial planning process. Explain actions for implementing a financial plan. Identify actions for reviewing a financial plan.

25. Key Terms financial plan individual retirement account (IRA) estate planning

26. ADVANTAGES OF FINANCIAL PLANNING Your financial uncertainties will be reduced. You will gain more control of your financial activities. Your family and household members will know more in case they need to assume control of your finances. Earning, spending, protecting, and saving your resources will be more systematic.

27. FINANCIAL PLANNING PROCESS 1. Analyze your current financial condition 2. Develop financial goals that are responsive to your vision 3. Create your financial plan 4. Implement the plan 5. Revise your financial plan

28. FINANCIAL INVENTORY Careful review of your finances Personal balance sheet Personal cash flow statement Information about current financial position Income Savings Investments Property Living expenses Insurance Money owed

29. PERSONAL FINANCIAL FILING SYSTEM Personal records Housing records Consumer purchase records Insurance records Money management records Tax records Financial services and credit records Investment, retirement, and estate records

30. FINANCIAL LIFE CYCLE Teen years Twenties Later Retirement

31. USING A FINANCIAL PLANNER Questions you might ask when choosing a financial planner What experience and training do you have? Are you willing to supply references from past clients? How are your fees determined?

32. >> C H E C K P O I N T List five recommended steps for financial planning.

33. IMPLEMENT A FINANCIAL PLAN Insure current income Disability income insurance Unemployment insurance Plan for future income Social Security Pensions Retirement accounts Annuities

34. >> C H E C K P O I N T What are common sources of income during retirement?

35. REVIEW YOUR FINANCIAL PLAN Revise financial goals Review financial activities Remember to save

36. >> C H E C K P O I N T What common activities are needed when reviewing a financial plan?