- Budgeting
- Cash Management
- Introduction
- Realize the Importance of Good Cash Management in Achieving Your Goals
- Understand the Different Cash Management Alternatives and How to Compare Them
- Know the Different Types of Financial Institutions
- Understand the Time Commitment Necessary for You to Effectively Manage Your Finances
- Summary
- Assignments
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Review Answers
- The three main trade-offs regarding cash management are the following: (1) the risk-return trade-off, (2) the spending-investment risk trade-off, and (3) the return-time expended risk trade-off.
- The key to using liquidity wisely is relating cash management to your personal goals. By doing this you are able to choose the investment vehicles that will help you achieve your goals faster.
- An emergency fund is a resource that can be used to meet unexpected needs for cash. You should have one so that you have sufficient liquid funds available in the case of an emergency, job loss, and so on. The amount of the emergency fund should be equal to three to six months of expenses. Your emergency fund should be a resource that can be used to meet your unexpected needs for cash.
- Six account characteristics that can be used to analyze different cash management alternatives are the following: (1) liquidity, (2) minimum balances, (3) interest rates, (4) safety, (5) costs, and (6) benefits.
- The four key areas used to compare cash management alternatives are the following: (1) interest rates, (2) after-tax returns, (3) inflation, and (4) safety.