quote:

For this assignment, you will need to complete your personal financial statements. As previously indicated, only you and I will will be able to see your work.

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The 12 month budget is looking into the future. It is a spending plan projection of what you hope will happen. Obviously, the future is uncertain, but it should none the less serve as a guide to your spending behavior. It should list your various sources of income - including loans, scholarships and gifts and then your various expenses (the expenses are likely the same as those listed on the income statement)

For these statements, I will be looking for internal consistency - that means that they are related and something that is one statement should probably be reflected in another. For example, if you list automobile payments - and insurance and maintenance costs in your budget, there should be an automobile listed in your balance sheet as an asset. Also, if you are a college student, there should be related costs (tuition, books etc.) in your budget. If you are getting scholarship money or a gift from your parents to pay your bills, that should be shown on the Cash Flow Statement as a source of revenue (income) with the related expenses in the budget.

I understand that some of you who are married or in a relationship, may be hesitant to share the information with me. Or, you may be embarrassed by your financial condition (which is perhaps why you are taking this class) I can assure you that the information will remain confidential. You must present information that is as accurate as possible. If you have a spouse that is unwilling to have the information shared, please let me know and we can discuss an accommodation.

If you are unwilling to use your exact dollar figures, you may alter them in a fashion of your choosing know only to you.. So for example you may multiple all figures by 3 or divide them by .6 or whatever factor you choose. BUT I would need to know the figures have been modified. I do not need to know the modification factor, just that they were modified.

The real importance of this assignment is to have you understand your financial condition and to have a spending plan. Real progress and the attainment of your goals can only be accomplished by knowing where you are (financially) and where you want to go (your goals) The statements are a tool that will help you live within your means and to attain your goals. When I grade these statements, I am not looking at the absolute amounts (so if someone has assets of $ 50, 000 and another assets of $ 500, ) there may no difference in the grade. I am looking for the presentation of the information not so much the amounts. Obviously a married student that owns a home and has children will have a more elaborate statement than a 19 yr. old college student living at home with their parents. But they can both get a grade of A on the assignment if the information is presented well. They will be submitted on-line with a paper copy sent to my office This submission will be private, that is whatever you provide can only be viewed by me and the information will not be shared with anyone.



Keep a copy of your statements in the unlikely event I do not receive your statements electronically or in the mail. You must send me a paper copy by the due date listed in the course schedule Please remember to put you name on all the statements you send to me

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Under " income"

Earnings, scholarships, gifts (for example if parents are paying some of your expenses including college expenses), employer educational benefit, unemployment, Social Security Payments, Social Services Contributions, veterans benefits, income tax refund etc

Under expenses

Income taxes, mortgage or rent, homeowner's or renter's insurance, cable/dish, water, utilities, cellphone, groceries, restaurant, clothing, car payment, car insurance, gasoline, auto maintenance, vacation, entertainment, dental insurance, health insurance, life insurance, retirement contributions, union dues, student loans gift giving (birthdays, christmas, wedding etc) daycare, pet care, home/apartment maintenance, educational expenses, savings, club memberships, dues, wedding expenses etc

Under assets

Monetary assets (checking, savings, cash)

Investment assets, (bonds, 401K's, mutual funds, collectibles, real estate etc)

Personal property (clothing, furniture, washer dryer, tools, electronics, hobby related (stamping, golf, tennis, roller skating etc), college text books, Jewlery, household items etc) Identify the broad categories of personal property - if you just provide a single amount you will not receive full credit

Automobiles, snow mobiles, 4 wheeler's, boats etc

House or other real estate

Cash Value of Life Insurance (not face value)



Identify the process you used to value your various assets

Under liabilities

short term - rent payment or mortgage, utility bill, cell/cable, credit card due, current auto loan payment, current school loan or revolving loan payment etc

long term - balance of mortgage, balance of auto loan, balance of school loan or installment credit, credit card etc


ALSO Provide a brief personal profile - your age , if you are a full time student, If parents or an employer is helping cover your education costs, married/single, if you have children, your employment status, if you live with parents, have an apartment, own a house and so on. This brief statement adds a great deal of meaning to your financial statements.