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Chapter 5

Chapter 5. Money management Strategy. C5DN. Chapter 5 begins the grades for MP4! WOW! Open a New Do Now: This is chapter 5 do now Open a new document for Notes: Chapter 5 Answer this do now:

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Chapter 5

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  1. Chapter 5 Money management Strategy

  2. C5DN • Chapter 5 begins the grades for MP4! WOW! • Open a New Do Now: This is chapter 5 do now • Open a new document for Notes: Chapter 5 • Answer this do now: • Do you think it is necessary to keep organized copies of your financial records? Why or why not?

  3. Money Management Strategy Chapter 5 What money management techniques can you employ to achieve your future financial goals?

  4. Money Management Strategy Chapter 5 Organizing and maintaining a personal financial plan are essential to budgeting for future financial goals.

  5. Money Management Strategy Chapter 5 • money management • safe-deposit box • personal financial statement • net worth • assets • wealth • liquid assets • real estate • market value • liabilities • insolvency • cash flow • income • take-home pay • discretionary income • surplus • deficit • budget • budget variance

  6. Money Management Strategy Chapter 5 Section 1 Organizing Financial Records • Discuss the relationship between opportunity costs and money management. • Explain the benefits of keeping financial records and documents. • Describe a system to maintain personal financial documents.

  7. Opportunity Costs and Money Management • Opportunity Costs and Money Management • What is Opportunity Cost? • Trade-offs • Money Management is planning how to get the most from your money • Example: Buy clothes or save • How do you make the choice • Consider your values, goals and state of your bank account

  8. Money Management Strategy Opportunity Costs and Money Management Chapter 5 Section 1 Organizing Financial Records How do your spending options fit: Your Goal of EffectiveMoney Management Your Current FinancialSituation Your Values money management day-to-day financial activities necessary to get the most from one’s money

  9. Benefits of Organizing Your Financial Documents • Plan and measure your financial progress • Handle routine money matters, such as paying bills on time • Determine how much money you will have now and in the future • Make effective decisions about how to save money

  10. Money Management Strategy Organization of Financial Documents Chapter 5 Section 1 Organizing Financial Records Financial Documents AutomobileTitles Pay Stubs BirthCertificates Bank Statements MarriageLicense Broker Reports Credit Card Statements Tax Forms

  11. Where to Keep your Financial Documents • Home file • Safe-Deposit box • On Computer • All of the above • What are 3 documents you might store in a home file? • Paychecks, receipts for major purchases, guarantees on items purchased

  12. Home files, Safe-Deposit Box, Computer Home Files Safe-Deposit Box • File drawer, folders • Simple to set up • Does not take up much space • Label the files • File receipts • Bank Statements • Do Not keep important papers here: Example: car title, mortgage loan • Small secure storage you rent at a bank • Mortgage papers, car title, rent agreement, birth Certs, insurance policies, stock certificates, valuable collectibles • You have one key and the bank has one key • Or fire-proof file cabinet at home

  13. Computer Computer • Tool for planning your future • Keep track of your financial records • Software designed to keep track of checking • Software to do your taxes • Keeps track of daily spending and income • Compare expenses from year to year Handout: Benefits of Organizing Fin Docs

  14. Job Offer Legal Document Banking • Complete a W-4 • Congrats on your graduation and job acceptance! • Your family has given you $5,000 to begin your new life • Open a bank account • Savings • Checking • Signature Card • Beginning your life • “My Life Part 1” (project grade) Deposit Slip • Example • Example filled out • Complete a Deposit Slip putting your $5,000 into your checking account

  15. Bank Account Forms & Checking Account • “My Life” • Open Excel • We will begin our checking account • Column • Row • Discuss a spreadsheet • Create your Checkbook • Save in PF, Checkbook • Save AS: Checkbook Register • Open your google email • Share as a google.doc with myself pamsouto418 @gmail.com

  16. C5DN • Name two places to keep your financial records save in your c5 do now • Any late work is due to me no later than tomorrow for Marking Period 3 • Next, open your checking account & minimize • Next, open your gmail account & minimize

  17. Monday Pd 5b • We need to complete the titles on the checkbook spreadsheet • We will work together to share as a google.doc with me

  18. Monday-5 &Pd 6 • Open your checkbook and minimize • Your first paycheck • Launch: paycheckcity.com

  19. C5DN • Name two places to keep your financial records • Any work that is due to me for MP3 is due no later than tomorrow

  20. Monday Pd 6 • Open your checkbook spreadsheet • Make sure it is complete with titles • We will work together to share with me as a google.doc

  21. Monday • Open your checkbook and minimize • Your first paycheck • Launch: paycheckcity.com

  22. C5DN-Tuesday • What is a W4 • All work for MP3 is due to me by today!

  23. Click “Salary Paycheck Calculator” • Click “Get Started” on the LEFT • Click “Salary Paycheck Calculator” • Check today’s date and pull down New Jersey

  24. Click “Gross Pay” and put in your yearly salary • Gross Salary YTD (year to date) leave “0” • Pay Frequency: Choose “Be-Weekly” • # Federal Allowances? • 2 • Total Allowances? • 2 • Click “Calculate” • Once it calculates choose “Print Options” • Choose: Check on top

  25. Type in YOUR information (Name address etc) • Your ID # is your computer # • Check # 1, today’s date • Company Name is the company that you are working for. Click “Submit”

  26. First Paycheck Continued • Fill out a deposit slip to deposit your Net pay into the checking account—place your class folder for now graded • Open your Gmail • Open your Checking Account • Rename Worksheet #2 to Savings Account --IF you have not done so • In your Checking Account Spreadsheet deposit your Net paycheck #1 –follow me-- • Do an Online Transfer: 10% of your net pay into your savings account • Update this on your Savings Spreadsheet • *Remember to deduct that 10% from your checking account to keep a correct balance

  27. C5 DN • What do you have to fill out in order to open a bank account?

  28. c5DN: Give one example of what you should keep in a safe deposit account • Open your Gmail • Open your Checking Account • Do an Online Transfer: 10% of your net pay into your savings account • Update this on your Savings Spreadsheet • *Remember to deduct that 10% from your checking account to keep a correct balance • Pay yourself first! • Follow steps to share your spreadsheet with me as a google.doc

  29. c5DN: What is the difference between Net Pay and Gross Pay • Open your gmail and your google.doc spreadsheet • Use your MAC and • Withdraw $40 for gas for the week to get to work • Remember to take the $40 cash out of your Excel spreadsheet and update your balance • Complete a direct Deposit Form (on the back)--different then a DEPOSIT SLIP • So we no longer need to fill out a deposit slip every time we get paid

  30. c5DN: What is the difference between Net Pay and Gross Pay • My Life Part 2 • Learning how to write a check & parts

  31. My Life Part 2—Period 5b • Apartment Hunting in New Jersey • Realestate.nj.com/for-rent

  32. Apartment floor plan

  33. How to complete a check

  34. My Life Part 2 • Open your gmail and your spreadsheet • Rename your ss “Period 5b YOUR NAME ckbk” • Review: • Locate an apartment—in New Jersey • Write a check to Souto Management Properties for 1 and ½ months security • *Remember to deduct this check “check #101 from your check register” • Period 5b You will now have to purchase apartment insurance for $10 a month—you will pay 6 months in advance. How much is that? You must write out a check! Check #102. Remember to also deduct this from your check register! • Check is payable to Apartment Insurance Inc.

  35. Money Management Strategy Chapter 5 Section 1 Organizing Financial Records C5DN: How are the roles of maintaining financial records and managing opportunity costs in a sound financial plan similar and different? Managing opportunity costs and maintaining financial records are both critical to a sound financial plan. Making sound financial decisions to get the most out of your money is an important step. In order to make and track these decisions you need to maintain financial records to keep track of your money and determine your financial position.

  36. Monday Period 5b • Write a check to Souto Management Properties for 1 and ½ months security • *Remember to deduct this check “check #101 from your check register” • Period 5b You will now have to purchase apartment insurance for $10 a month—you will pay 6 months in advance. How much is that? You must write out a check! Check #102. Remember to also deduct this from your check register! • Check is payable to Apartment Insurance Inc.

  37. Monday Pd 6FOOD SHOPPING • Going food shopping for your first apartment (which you do not have yet) • You must spend no less than $150 but no more than $200 • Fill out the paperwork on what you are buying (grocery list) • Attach to the back of My Life P2

  38. Writing a check to Shop Rite • Check #101 • Today’s date • Pay to the order of: Shop Rite • In the box you write the amount. Example • 105 00/100 in numbers • Next line you actually write: one hundred five dollars & 00/100 • Memo: Food Shopping #1 • Your signature next line • Now go to your spreadsheet and make the payment for check #103 for Shop Rite

  39. Items to purchase

  40. Review/Catch Up IF all caught up Play PF Game Lesson #5 • Take out your my Life Part 2 • Cross Off on your coversheet “Create your apartment on paper (layout) • We are not doing this you have attached your floor plan • Open your Gmail checking account • Insert new spreadsheet and title it “Wish List” • Create a wish list of items you want to purchase and prices • Review what should be completed in your ss to date • If you need to catch up you are to come in the morning!

  41. DNc5 • Why do you pay a security deposit before you move into your apartment?

  42. Thursday • Payday • Pick from Bucket… Life event

  43. TUESDAY 4/17 • Open Gmail • Open checking account through documents • Click on “Savings” tab • Do you have a formula in your balance cell? • If not, what should the formula be? • Let’s do the formula now • Week A--Complete your bills those bills we did not finish yesterday • *Remember the life events • We will continue with notes and the importance of a balance sheet

  44. Wed • Take out My Life Part 2 • Step by step attach everything • Ck to be sure it is all done in your checking account • Ck to be sure all is done in savings • Staple all to cover sheet • Hand in to be graded • Complete Chapter 5 notes

  45. Period 5b: Monday C5DN What is an asset? • My Life P2 • Review • All checks must be attached and in your spreadsheet in order! • Make sure if it said to use a check you used a check if it said use MAC you keyed that in • Attach all necessary documents • Hand in to be graded • Open Chapter 5 notes

  46. Money Management Strategy Chapter 5 Section 2 Personal Financial Statements • Describe a personal balance sheet. • Develop a personal balance sheet.

  47. Money Management Strategy Personal Balance Sheet Chapter 5 Section 2 Personal Financial Statements Personal financial statements can help you: Determine what you own and what you owe Measure your progress toward your financial goals Track your financial activities Organize information required to file your tax return or apply for credit personal financial statement a statement that gives information about current financial position and presents a summary of income and spending

  48. Money Management Strategy Personal Balance Sheet Chapter 5 Section 2 Personal Financial Statements Your personal balance sheet includes your net worth. personal balance sheet a financial statement that shows what one owns and debts that one owes net worth the difference between the amount you own and the debts you owe

  49. Money Management Strategy Personal Balance Sheet Chapter 5 Section 2 Personal Financial Statements Your assets are an indication of your wealth. assets owned items of value, such as cash, real estate, personal possessions, and investments wealth property that has a money value or an exchangeable value

  50. Money Management Strategy Personal Balance Sheet Chapter 5 Section 2 Personal Financial Statements Liquid Assets Real Estate Categories of Wealth Personal Possessions Investment Assets liquid assets cash and items that can be quickly converted to cash real estate land and any structures that are on it, such as a house or any other building

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