[Objective 1]
Recognize relationships among financial documents and money management activities. Successful money management requires effective coordination of personal financial records, personal financial statements, and budgeting activities.

[Objective 2]
Design a system for maintaining personal financial records. An organized system of financial records and documents is the foundation of effective money management. This system should provide ease of access as well as security for financial documents that may be impossible to replace.

[Objective 3]
Develop a personal balance sheet and cash flow statement. A personal balance sheet, also known as a net worth statement, is prepared by listing all items of value (assets) and all amounts owed to others (liabilities). The difference between your total assets and your total liabilities is your net worth. A cash flow statement, also called a personal income and expenditure statement, is a summary of cash receipts and payments for a given period, such as a month or a year. This report provides data on your income and spending patterns.

[Objective 4]
Create and implement a budget. The budgeting process involves four phases: (1) assessing your current personal and financial situation, (2) planning your financial direction by setting financial goals and creating budget allowances, (3) implementing your budget, and (4) evaluating your budgeting program.

[Objective 5]
Relate money management and savings activities to achieving financial goals. The relationship among the personal balance sheet, cash flow statement, and budget provides the basis for achieving longterm financial security. Future value and present value calculations may be used to compute the increased value of savings for achieving financial goals.