Name______________________________________________Date______________Class_________________________

Chapter 8 Budgets and Financial Records

LESSON 8.1 BUDGETING AND PLANNING

FINANCIAL PLANNING BASICS

Getting Started : Make a plan, consider income and expenses.

Visualizing Your Future: Know what changes you need start

Preparing a Budget: Money coming in must equal money going out

Steps in Preparing a Budget: Estimate your income.

Estimate your expenses.

Decide how much to save.

Balance your budget.

A Typical Monthly Budget

Fixed expenses are costs that do not change from month to month.

Variable expenses are costs that vary in amount and type, depending on the choices you
make.

PERSONAL RECORDS

Managing Your Personal Finances Chapter 8 2010 South-Western, Cengage Learning 23

Name______________________________________________Date______________Class_________________________

Income and Expenses Records: W-2 Forms, statements from banks and
investment companies.

Net Worth Statement: A net worth statement shows a persons net worth
based on his or her assets and liabilities.

Personal Property Inventory

Tax Records: Keep copies of tax record at least 3 years.

Other Records: Keep lists of credit card numbers and phone numbers

Lesson Features

Net Bookmark: Envelope Budgeting p. 163 (article found in BB Ch. 8 folder)

LESSON 8.2 LEGAL AGREEMENTS AND RECORD KEEPING

LEGALLY BINDING AGREEMENTS

Contract Elements: A contract is a legally enforceable agreement between two or

more people

Agreement: A contract has legal agreement when a valid offer is made and
accepted

Consideration: is something of value exchanged for something else of value

Managing Your Personal Finances Chapter 8 2010 South-Western, Cengage Learning 24

Name______________________________________________Date______________Class_________________________

Contractual Capacity: Refers to the competence of the parties to enter a contract

Legality: To be legally enforceable, a contract must have a lawful purpose.

Statute of Frauds: Every state has a statute of frauds to prevent harm due to
fraudulent conduct.

Responsibilities in Agreements: Fill in all blank spaces or indicate N/A for items that are
not applicable.

Write all terms clearly.

Enter dates, amounts, and other numbers correctly and clearly.

Be sure the seller has supplied all relevant information.

Understand all terms contained in the agreement.

Check that no changes have been made after you have signed it.

Keep a copy of the agreement.

Negotiable Instruments

Warranties: A guarantee, is a statement assuring quality and performance of a product or

service.

Managing Your Personal Finances Chapter 8 2010 South-Western, Cengage Learning 25

Name______________________________________________Date______________Class_________________________

PERSONAL RECORD KEEPING

Paper Filing System: Include folders and labels and a file cabinet.

Electronic Record Keeping: Invest in home computers and software for personal
financial planning and record keeping.

Managing Your Personal Finances Chapter 8 2010 South-Western, Cengage Learning 26