Day 50

Lesson Objectives

  • Understand the purpose of cash flow planning.
  • Identify reasons some people avoid having or sticking to a budget.
  • Identify changes in personal spending behavior that contribute to wealth building.
  • Explain the difference between a cash flow statement and a budget.

Assignment BUU2.3

  1. Watch Video 2.2
  2. As you watch the video, record the missing words from page 52 of the textbook as they pop up on the left side of the video screen by filling in this form.  (page 52)
  3. Discussion Questions:
    1. In what ways is money active?
    2. How is the blueprint for a house similar to a budget?
    3. How many months of initial budget development does it take to truly get a grasp of what your budget should look like?
    4. Why is it important to have a cash flow plan?
  4. Watch Video 2.3
  5. As you watch the video, record the missing words from pages 53-54 of the textbook as they pop up on the left side of the video screen by filling in this form.  (pages 53-54)
  6. Discussion Questions:
    1. Why do some people avoid writing or following budgets?
    2. Who has control of what is in the budget?

Assignment BUU2.4

  1. Obtain your partner from your instructor.
  2. Make a copy of this Google Sheet, rename it Cash Flow Statement Analysis-(Your Initials), share it with your partner, and move it into your Lesson 2 folder.
  3. Using the data in the spreadsheet, calculate the following in the appropriate column in the spreadsheet using functions and formulas:
    • Grey Rows: establish totals from the numbers above.
      • In cell C12 type in =SUM(C8:C10) and press return.  Copy this formula to all the grey cells in row 12.
      • In cell C27 type in =SUM(C16:C25) and press return.  Copy this formula to all the grey cells in row 27.
    • Black Row: the difference between the Cash In subtotal and the Cash Out subtotal.
      • In cell C29 type in =C12-C27 and press return.  Copy this formula to all the black cells in row 29.
    • Orange Columns: percent of total income for each component.
      • In cell D8 type in =C8/C$12 and press return.  Copy this formula to all the orange cells in columns D, F, H, J, L, N, P, R, T, V, X, and Z.
    • Blue, Red, & Green Cells:  average percentage for the year.
      • In cell AA8 type in =AVERAGE(D8, F8, H8, J8, L8, N8, P8, R8, T8, V8, X8, Z8), and press return.  Copy this formula to all the blue, red, and green cells in column AA.
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