BYU Personal Finance Course -- Chapter 3: Saving, Income and Expense Planning: Giving Every Dollar a Name

Chapter 3: Saving, Income and Expense Planning: Giving Every Dollar a Name

Link here. 

Begins on page 52 / 63 of 352.

Papa's takeaways:

• one should keep an SEI journal, even if it's very rudimentary in the beginning
• grandparents needs to provide information regarding financial support they may be able to provide

Objectives:

• understand family record keeping
• understand the principles, methods and levels of successful saving, income and expense planning (budgeting) and its methods and process
• calculate your net worth using a personal balance sheet
• develop a personal income statement and use ratios to analyze your spending
• understand and create your budget (saving, income, expense -- SEI budgeting)

Then the chapter expands on each one of these. Scan through them quickly so you know what is there and then go back as needed.

There are five main types of SIE budgeting:

• the envelope method
• the 60% rule
• spreadsheets
• budgeting software
• DNAH-ial methods (do nothing and hope)

Definitions of lots of jargon.

This chapter becomes more important once:

• you graduate from college;
• have a job; earn an income;
• require less and less financial support from family;

My hunch:

• both Arianna and Olivia have already learned to budget;
• the question is whether they maintain a journal, or a record-keeping device (handwritten or electronic worksheet)

To make this chapter more interesting and more relevant, Arianna and Olivia need to know the financial contributions their grandparents and parents may provide over time.