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23 terms

Budgeting and Spending Plans

STUDY
PLAY
What are the traits to successful budgeting?
-well planned
-realistic
-flexible
-clearly communicated
What are the steps in the budgeting process?
-Set financial goals
-Estimate income
-Budget emergency funds/savings
-Budget fixed expense
-Budget variable expense
-Record spending amounts
-Records saving amounts
What are the reasons behind fights regarding financial issues?
1. debts
2. levels of spending and saving
3. time spent working
4. difference in long-term financial goals
5. money chores
What are some common financial mistakes people do?
1. personal characteristic
2. what peeps don't do
3. what peeps don't know
What are some personal characteristics that cause peeps to make finical mistakes?
1. values are not clarified
2. inability to make decisions
3. procrastination
4. use money for ulterior purposes
5. only 1 family member doing finances
6. conflicting values/goals
What are some things that peeps don't do?
1. set goals
2. follow through
3. keep records
4. maintain adequate liquidity
5. buy disability income insurance
6. maintain adequate diversification
7. get advice from profession
What people don't know?
1. fed income tax laws
2. amount and type of life insurance needed
3. employer benefits
4. up to date financial info
How do you develop money sense in children?
-give children access money
-give children freedom to spend and save
-allow children the freedom to fail
-talk about family fiances with children
what is the first commandment for financial sucess?
have a properly written will
What is the second commandment for financial success?
have a relationship with a banker
What is the third commandment for financial success?
buy a home
What is the fourth commandment for financial success?
have excellent credit rating
What is the fifth commandment for financial success?
have adequate insurance
What is the sixth commandment for financial success?
develop and adhere to a budget
What is the seventh commandment for financial success?
Plan for retirement
What is the eighth commandment for financial success?
develop a savings plan
what is ninth commandment for financial success?
be a comparison shopper
what is the tenth commandment for financial success?
Do not define thyself by thy possesions
True of false? Do not set impossible limits
true
True or false? Ignore your wants
false
True or false? remember unexpected expenses
true
True or false? do not include family members
false
True or false? dont underestimate the importance of detailed record of actual expenditures
true