Family Financial Management

Annie’s Project

January 23, 2007

Coweta Oklahoma

Organize Household Records

It isn’t necessary to keep track of every penny that is spent by the entire household.

It is necessary to know where all of the important papers are located and they are accessible and secure.Bad ideas are a shoe box in the bedroom closet

or the top dresser drawer.

Important Records

Some of these records will be needed to prepare the income tax returns and need to be accessible.

If the home is damaged or destroyed, these records will be valuable so they need to be stored safely.

In the event of a death, these records will be necessary to settle the estate.

How To Get Started

MOTIVATION – the first HARD step.Pull out all of the papers and begin to sort

them.Discard any unnecessary papers (shred)Decide who will take the lead on keeping

these papers organized and safe.Schedule a regular time each week to work

on the family records.

Where to Keep the Records Home Safe

Should be fireproof Burglarproof Hard to be torandoproof

Safe Deposit Box

Investment Certificates Bonds

Deeds Mortgages

Contracts Insurance Policies

Automobile Titles Appraisals

Household Inventory Will / Trust Documents

Home File File Cabinet or a Sturdy Box

Items that are replaceable and used frequently

Insurance Policies Guarantees

Warranties Education Records

Financial Statements Health Records

Copies of Household Inventory

List of Safety Deposit Box Contents

Tax Payments Canceled Checks

Home Safe

A home safe should be used for frequently needed items that need to be protected from fire and theft. Income tax returns from previous yearsDurable powers of attorneyAsset and property records

Your Wallet

Your Wallet is a mini-storage location Personal ID Driver’s License Credit Cards Medicare or Health Insurance Card Blood Type Organ Donor Card Special Medication Information Name and Phone Number of Family Physician

Personal and Family Records To KeepNames, addresses, and phone numbers of

relativesNames, addresses, and phone numbers of

advisorsLocation of valuable recordsLocation of safe deposit box and keyLocation of CD’s, computer discs, video’s,

photo’s of home inventory.Computer passwords and file names

Personal and Family Records To Keep

Location and identification of valuablesInsurance policiesHealth recordsEducation recordsEmployment records

Property Information To KeepProperty deedsMotor vehicle recordsEquipment warranties, guarantees, and

instruction booksRecords of your home purchase and

improvementsBurial plotsOther property purchases and improvements

Household Inventory

Reasons for a household inventory:Amount of insurance to purchaseBasis for filing insurance claims or tax lossesEvidence of ownershipValue of possessions – net worth statement

Financial Information To KeepEarnings recordsAccount records from financial institutionsCredit and debit card informationPersonal tax returnsRetirement benefitsNotes and money owed

Financial Accounts

Current FilesBank statements and cancelled checksBills to be paidCredit card statements

Permanent FilesCredit recordsPension or retirement informationContracts, notes, debts Investments

Legal Records To Keep

Official certificates Birth, marriage, death, etc.

Current estate planning information Wills, trusts, list of non-titled property

• Advance Directives and Powers of Attorney

• Social Security Card

• Passport

How Long To Keep RecordsTax Records IRS Says at least 3 – 6 yearsConsider keeping them 7 to 10 years

Bank Statements7 years

Cancelled Checks1 year unless it is for a home improvement then keep it

for 6 yearsCredit Card Statements

1 years unless it is for a deductible expense or for a major purchase, keep much longer

Get Started

Make a plan Get organized Replace missing items

Complete inventoryUpdate at least annuallyMake an appointment with YOURSELFSchedule regular weekly sessions Stick to it