Money Management

Money management address the concepts of cash flow (a.k.a., budgeting), personal net worth and financial goal setting. Adults should be able to create a budget, analyze their net worth, and set short-term and long term financial goals.

Its all about managing cash flow. Generally speaking there are six components to a budget: Income, Taxes, fixed expenses, Varibale Exspenses, Periodic expenses and discretionary Expenses. Each part of the budget is essential to piecing together your entire financial picture. Leave one part out and there’s a gaping hole.

Budgeting includes three basic steps:

1. Listing income and expenses;
2. Evaluating where changes need to be made in the event the budget dosen’t balance.
3. Following through to maintain the budget.

There will be more info regarding this topic in the next few days.