FACS 56 life management

money management—budget & credit

money management—allocating

now you are ready to match future income to future expenditures—budgeting

goal:monthly spending plan (budget) that meets all your expenses

this is a dynamic process—may require movement between steps until all needs are met within resource limits

money management—allocating

FIRST:calculate amount of fixed expenses

NEXT:review status of emergency fund—PYFcould you survive for 6 months without income?

THEN:evaluate spending on variable expenses

money management—allocating

variable expenses—a little give an take may be necessary

•is there money here that could be used differently?•are you getting what you really need?•is a vacation more important that weekends at the movies?•is it worth giving up new carpeting to get a new car?•are your needs for insurance and retirement being adequately met?

allocate money based on goals, values & priorities

http://www.greenpath.com/tools-and-tips/calculators/budget-percent.htm

participation activity: analyze and allocate pgs. 285-288

…starting on page 285, read all the information and answer the questions according to the information you have gathered for the Add it Up activity…using figure 14-4 on page 288, create a monthly budget form that is customized to meet your particular needs…this activity and your completed budget is due April 25th in Packet #3

money management—adjusting your plan

like any plan a budget needs adjusting

•may have forgotten something•may have under- or overestimated an item•your expenses and income will change

keep an eye out for feedback and adjust accordingly

planning for the future

look at figure 14-2

no matter how old you are, you can always be thinking about planning for future…

what does your future include?

credit

cost of credit

http://www.youtube.com/watch?v=ws9Kyypunq4

credit

best creditors?

http://www.youtube.com/watch?v=avzdbf8f07Y

credit

which card is best for your situation?

http://www.youtube.com/watch?v=w0I_3T0ZTMw&NR=1

credit

credit score

http://www.youtube.com/watch?v=1kMjxjlYYMs&NR=1

credit—rights & responsibilities

used wisely can be more of a benefit than a burden

understanding your rights & responsibilitieshelps you to make wise choices

special issues during your life

life events have a way of coming upon us

predictable:•meeting the needs of growing children•supporting education for teens after high school

unpredictable•divorce•remarriage•child support

special issues during your life

other situations we could also anticipate:•caring for elderly parents•planning for retirement•life as a single elder

participation activity:credit card caper & debt load analysispgs. 287-292

…read all the valuable information provided on pgs. 287-289 referring figure 14-5 on pg. 290 as well…complete the worksheets on pgs. 291 & 292 in order to complete your own debt load analysis