Personal finance

Personal finance, budgeting, balance, cash flow

1. Personal finance

2. Research areas of personal finance Personal finance (funds) is the study of personal and family resources that are important in achieving financial success.

3. Glossary Financial literacy ? Financial liability? Asset?

4. Financial planning

5. Identify current financial situation – Balance Asset Liability Net asset = Asset – Liability Assessment of financial condition

6. Assets The assets section summarizes a list of items valued at a fair price on the market. This is the current cost that a person who is ready to buy pays to someone who is ready to sell . Types : Cash assets (cash equivalents) are a type of asset that is easily converted to cash, with the same value as current and savings accounts. Tangible assets are private property belonging to a person. Investment assets are assets spent on the financial market.

7. Discussion about assets like house, car To the according cash flow / passive income To the according for balance, ability to close liabilities

8. Liabilities Short-term (current) liabilities: personal loans received from other persons; credit card; other credit obligations; Long-term liabilities : credits; mortgage ; education loan

9. Example College student Martha's parents presented an apartment worth 45 thousand dollars. Martha has a credit card 2 thousand (payback in 1 year) and a tuition fee 20 thousand for 2 years. Determine current net asset . Determine the net asset of Martha in 2 years, if the cost of the apartment will decrease by 32 percent ?

10. 2) defining financial goals Goals amount time Assign goals by terms Long-term goals Mid term goals Short term goals

11. 3. Give an estimate of the cash flow. Development of an action plan to achieve the goals (budget)

12. Cash flow parts Revenues Expenditures Total Total Surplus (deficit)

13. Budget parts Revenues Expenditures Revenues Expenditures Total Total Surplus (deficit)

14. Differences cash flow: shows current income and expenses where you stand financially in the past tense. A budget is a paper or electronic document that is planned for a certain period and is used to record your actual income and expenses. Budget indicates where you want to be in the future. Balance report: evaluates your current financial situation.

15. References E. Thomas Garman, Raymond E. Forg . Personal finance. Khan academy MOOC Open2study MOOC