CDAE 158 Lecture Notes - Lecture 4: Spreadsheet, Financial Services, Financial Statement
13 Sep 2018
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Document Summary
Chapter 3: money management strategy- financial statements and budgeting. Money management is the day to day financial activities necessary to manage current personal economic resources while working toward long-term financial security. Spending for current living expenses reduces the amount you can save and invest. Saving and investing for the future reduces the amount you can spend now. Using savings for purchases results in lost interest earnings and depletes savings. Comparison shopping can save money but takes valuable time. Components of money management: storing and maintaining personal financial records and documents, creating personal financial statements (balance sheets and cash flow statements, creating and implementing a plan. An organized system of financial records provides a basis for: Handling daily business affairs, such as paying bills. Determining available resources for current and future spending. Spreadsheet summaries of budgets and investment records. Digital versions of income tax returns, wills, and estate plans. Keep birth certificates, wills, and social security data permanently.
