Values - USU - Alena C. Johnson PDF

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USU - Alena C. Johnson...

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Values, goals, budgeting Values = Motivators  Relatively permanent belief about what is important  Tend to reflect upbringing  Not the same for everyone Write down things that are important to you 1. Religion 2. Family 3. Friends/relationships 4. School 5. Music Why talk about values in a Family Finance class? They affect your financial behavior - you are likely to spend more money on the things that you value as important. They should be the basis for your financial goals. Goals A well-defined goal has  Description - enough details to know what you are working towards  Target date  Cost  Plan - how are you going to accomplish the goal Three effective goal tools: accountability, commitment, write down goals Goal Sheet Assignment Time frame (one each) Short term - 0-12 months Intermediate - 1-5 years Long-term - 5+ years Specific and realistic Consider values Use financial checkup worksheet Turned in with financial checkup assignment Can do it now Good financial goals 1. Graduate with no debt 2. Purchase a ring/ pay for reception/ pay for honeymoon 3. Get a piano teacher and pay for lessons 4. Apply for a job (cost= nice clothes/ transportation) Statements  Cash-flow looks at the PAST  Balance sheet looks at the PRESENT  Budget looks at the FUTURE

Budgeting Assignment  Start October 1  Turned in with the Financial Checkup assignment  Tracking and I & E statement  Do you like what you spent in each category?  Keep or change for each spending category  Create a budget in the first column  During the month keep track of spending for the actual column  Figure out the difference in the last column Budgeting Stumbling Block 1 – Irregular expenses Solution – Revolving savings account Due with the financial checkup Stumbling Block 2 – Small unexpected expenses Solution – Miscellaneous Category Stumbling block 3 – Large Unexpected Expenses Solution – Emergency Fund Tips Have a ________________________ attitude Have a revolving savings account Have a miscellaneous category Have an emergency fund ________________________ Have a personal allowance TEST!!!!!! Rule of 72 - how long it takes your money to double ** How much should you have in an emergency fund?** At least 3-12 months of your take home pay Which statement would include a mortgage balance? Net Worth Statement Which financial statement would include a monthly payment to the dentist? Income and Expense Which financial statement would include rent? Income and Expense...