The University of Wyoming is an equal opportunity/affirmative action institution.The University of Wyoming is an equal opportunity/affirmative action institution.

Managing Your Family Finances

Planning forFinancial Security

Bill Taylor

University of Wyoming

Northeast Area Extension Educator

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What is Financial Security? It is not being wealthy. It is having enough money so that you have

power over financial anxiety. Financial security is the ability to meet future

needs (not wants) while maintaining day-to-day obligations.

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Are You Financially Literate? Do you understand your relationship to

money? Do you read about, discuss, and

communicate regarding financial issues? Do you possess knowledge of banking and

credit? Do you practice money management? Do you plan for major life events?

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Are You Financially Literate? Do you understand the need for protection

against unforeseen emergencies? Do you save and invest for the future? Do you know how and where to find

information to make effective personal financial choices?

And, are you a lifetime learner who applies that learning to new financial situations?

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Households Are Diverse

Households are diverse in their employment, income, investments, and expenditures

Households face wide-ranging decisions about how to allocate limited resources among various activities

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Money Decision Modelin the perfect world

YOU

your decisions

your money

your goals

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External pressurespushing at us

YOUdecisions

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Adding another person to the model

decisions

YOU

Spouse

decisions

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Impacts

When our financial world is out of alignment, so are our decisions Impact on money, relationships, and

ability to reach important goals

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Wealth Distribution ‘giving it to your chosen ones’

Wealth Accumulation‘giving it to yourself’

Estate Planning

Basic Wealth Protection ‘quit giving it to others’

Children’s Education Retirement Planning

Building Long Term Wealth: planning financial future, goal setting, regular savings plan

Home Ownership

Investments

Cash Management: record keeping, spending plans, emergency cash reserve,

regular savings plan, net worth and income-expense statements

Financial Management Pyramid

Credit Management: wise credit use, avoid credit abuse, debt reduction

Tax Management: reduce income taxes

Risk Management: protection against economic loss

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Practice goodmanagement skills

Successful managers – set goals and priorities involve everyone who will be directly affected know their strengths, work on their

weaknesses plan carefully work at carrying out their plans

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Involve family members

Increased awareness commitment participation

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Identifying Your Income

Is your family dependent on more than one source of income?

Is the primary income earner self-employed with a fluctuating income?

Is your job unstable and subject to layoffs?

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Know income patterns

Regular - save on a monthly basis

Erratic - may be more realistic to save quarterly, semi-annually, or annually

Lump - save semi-annually or annually

Time

Inco

me

regularerratic

lump

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Identify expense categories

Fixed insurance mortgage interest bearing

savings account

Variable clothing food utilities transportation recreation

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Monitor types of expenses

Essential

Necessities food utilities insurance payments mortgage payments medical payments

DiscretionaryCan be delayed or reduced in

amount food clothing recreation transportation gifts

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Find out where you are spending your money

Know where your money goes

Keep a record of expenses

Set up listing for each expense category

Date Food & grocery

Auto & mainten.

Clothing Medical & health

Home mort. & mainten.

Utilities Recreation & entertain.

May 2

May 5

May 6

150.25

80.36 22.50

24.56

36.00

25.00

100.45

37.50

43.00

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Protecting Against Identity Theft

Shred or tear up sensitive papers, especially pre-approved credit applications and all identifiers

Be careful at ATM’s/phones Have checks delivered to bank Be sure credit cards arrive on time Cancel all credit cards that you do not use in

6 months Put passwords on all accounts

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Protecting Against Identity Theft (cont.)

Ask what businesses do with your information Locked mail box Don’t carry identifiers you don’t need Pictures on credit and business cards Don’t put credit card number on unencrypted

sites, envelopes, checks Ask for SS# alternative Monitor all statements

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Protecting Against Identity Theft (cont.)

Order your credit report twice a year Immediately correct credit reports Opt out of pre-approved credit card offers Keep list of all account numbers and

customer service numbers in safe place Install a software firewall program Put a stop on mail delivery when gone Know who you’re doing business with

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Protecting Against Identity Theft (cont.)

Don’t put telephone number on checks Don’t put SS# on checks, driver’s license or

credit receipts Don’t open phishing emails Avoid Internet pop-ups

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If Your Identity Has Been Stolen

Report it immediately Any of the Credit Reporting Agencies:

Equifax 1-800-525-6285 Experian 1-888-397-3742 TransUnion 1-800-680-7289

Close tampered or unauthorized accounts File police report File complaint with Federal Trade Commission

www.consumer.gov/idtheft 1-877-438-4338 Identity Theft Clearinghouse, Federal Trade Commission,

600 Pennsylvania Avenue, NW, Washington, D.C. 20580

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If Your Identity Has Been Stolen (cont.)

Notify creditors Keep a log of all actions taken Check post office for unauthorized change of

address

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