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
- Watch Video 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) .
- Discussion Questions:
- In what ways is money active?
- How is the blueprint for a house similar to a budget?
- How many months of initial budget development does it take to truly get a grasp of what your budget should look like?
- Why is it important to have a cash flow plan?
- Watch Video 2.3
- 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) .
- Discussion Questions:
- Why do some people avoid writing or following budgets?
- Who has control of what is in the budget?
Assignment BUU2.4
- Obtain your partner from your instructor.
- 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.
- Using the data in the spreadsheet, calculate the following in the appropriate column in the spreadsheet using functions and forumlas:
- Grey Rows: establish totals from the numbers above.
- Black Row: the difference between the Cash In subtotal and the Cash Out subtotal.
- Orange Columns: percent of total income for each component.
- Blue, Red, & Green Cells: average percentage for the year.