Managing Finances

1
Managing Finances

• FCS 3000
• Chapter 13

2
Financial Management

• Science or practice of managing money or assets
• Financial Planning
• Managing info. decision support systems
• Objective of Finance Mgt.
• Business
• Individuals families

3
Terms

• Values
• Principles that guide behavior
• Goals
• End result
• Decision making
• choice between alternatives
• Attitude
• Feelings in regards to an idea, person, object,
  situation, or relationship

4
Systems method Throughput

• Identify goal
• Collect information
• Analysis of resources
• Decide to spend, invest, or save
• Evaluate decision

5
Economic Indicators

• Personal spending
• New home sales
• Consumer price index (CPI)
• Unemployment rate
• Gross domestic product (GDP)

6
Business cycle

• Recession
• Recovery
• Expansion
• Inflation

7
Types of income

• Income
• Amount of money received in a given time
• Discretionary
• Disposable
• Gross
• Psychic
• Real

8
Financial worth

• Net worth Assets minus liabilities
• Liquidity of assets
• Budget spending plan
• Fixed expenses
• Flexible expenses

9
Money short?

• Increase income
• Reduce expenses
• Sell something/downsize
• Combination of all three

10
Credit

• Method of deferred payment
• Pros Cons
• Credit reports
• Equifax www.equifax.com
• Trans Union Corp. www.transunion.com
• Experian ww.experian.com
• Identity theft

11
Children

• Housing
• Food
• Transportation
• Clothing
• Health care
• Education/child care
• Misc

12
The way to wealth is to be debt free

• Living within ones means
• Sacrifice
• Discipline
• Hard work
• Poverty
• Temporary
• chronic