FACS Unit 7FACS Unit 7

Home Management and Consumer EducationHome Management and Consumer Education

The Meaning of ManagementThe Meaning of Management

The process of using available resources The process of using available resources to meet goals.to meet goals.

Enables person to organize and control Enables person to organize and control certain aspects of their lifecertain aspects of their life

Sign of maturity and enables one to Sign of maturity and enables one to achieve moreachieve more

7.2

The Management ProcessThe Management Process Define the problemDefine the problem

focus on what needs to be donefocus on what needs to be done Gather informationGather information

get reliable and accurate informationget reliable and accurate information Consider alternativesConsider alternatives

explore choicesexplore choices Evaluate consequencesEvaluate consequences

consider the possible results of each alternativesconsider the possible results of each alternatives Make the decisionMake the decision

make the best choice and act on itmake the best choice and act on it Evaluate the decisionEvaluate the decision

consider whether the choice was good or bad and whyconsider whether the choice was good or bad and why

7.3

Human and Material ResourcesHuman and Material Resources

Human resourcesHuman resources resources that come from peopleresources that come from people

knowledge, skills, talents, creativity, health, knowledge, skills, talents, creativity, health, education, timeeducation, time

Material resourcesMaterial resources tangible items which help an person meet tangible items which help an person meet

goalsgoals money, property, housing, possessions, schools, money, property, housing, possessions, schools,

library, computerslibrary, computers

7.4

Techniques for Managing Techniques for Managing ResourcesResources

Make a list of things that need to be doneMake a list of things that need to be done planplan deal with items that have the highest prioritydeal with items that have the highest priority be prepared for each taskbe prepared for each task look ways to improvelook ways to improve don’t overload yourselfdon’t overload yourself limit your commitments by learning how to limit your commitments by learning how to

say “NO”say “NO”

7.5

Using a Computer to ManageUsing a Computer to Manage

Financial managementFinancial management EducationEducation Accessing the Internet and on-line servicesAccessing the Internet and on-line services Communication--faxes and emailCommunication--faxes and email Information research and management--word Information research and management--word

processing, spreadsheets, databaseprocessing, spreadsheets, database Telecommuting--work at home using Telecommuting--work at home using

computers to communicate with employercomputers to communicate with employer Entertainment--games, hobbiesEntertainment--games, hobbies

7.6

7.6.1 Plan ways to manage 7.6.1 Plan ways to manage resources using a computerresources using a computer

Online bankingOnline banking Computerized checkbookComputerized checkbook CalendarCalendar

Needs vs. WantsNeeds vs. Wants

WantsWants something a person would like, but does not something a person would like, but does not

need to surviveneed to survive new clothes, compact disc playernew clothes, compact disc player

NeedsNeeds essential for survivalessential for survival

food, air, water, shelter, security love, food, air, water, shelter, security love, companionshipcompanionship

7.7

Sources of IncomeSources of Income

AllowancesAllowances SalarySalary InterestInterest Dividends/InvestmentsDividends/Investments Inheritance/GiftsInheritance/Gifts RetirementRetirement Social SecuritySocial Security

7.8

Developing a Financial PlanDeveloping a Financial Plan

Determine financial goalsDetermine financial goals needs and wants need to be consideredneeds and wants need to be considered goals are established for the spending plangoals are established for the spending plan

Estimate total income from all sourcesEstimate total income from all sources Estimate total expensesEstimate total expenses

fixed and flexible expensesfixed and flexible expenses Compare total estimated income to total Compare total estimated income to total

estimated expensesestimated expenses Revise plan if necessaryRevise plan if necessary Follow planFollow plan Evaluate planEvaluate plan

7.9

Basic Banking ServicesBasic Banking Services

SavingsSavings CheckingChecking On-line bankingOn-line banking ATM--Automatic Teller MachineATM--Automatic Teller Machine LoansLoans Certificate of DepositCertificate of Deposit NotaryNotary Money MarketMoney Market Credit CardCredit Card

7.10

Check-WritingCheck-Writing

Write clearly in inkWrite clearly in ink Date the check the day it is writtenDate the check the day it is written After the words “Pay to the order of,” write After the words “Pay to the order of,” write

the name of the person or company to whom the name of the person or company to whom you are paying the money.you are paying the money.

Write the amount of the payment in numerals, Write the amount of the payment in numerals, close to the dollar sign.close to the dollar sign.

Write the amount of the payment in words, Write the amount of the payment in words, following the amount of dollars write the word following the amount of dollars write the word “and” for cents, ex. 50/100 or no/100“and” for cents, ex. 50/100 or no/100

7.11

Check Writing (con’t)Check Writing (con’t)

Draw in a line through the remaining space Fill in the line marked “for” Sign your name exactly as you signed your

signature card If a payment, write account number on check If an error is made, VOID the check and make

a note of this Keep an accurate record by completing your

check register at the time you write the check.

7.11

Reconciling Your Bank StatementReconciling Your Bank Statement

Compare all recorded expenditures Compare all recorded expenditures and/or receipts to your bank statementand/or receipts to your bank statement

Some may not have been returned or Some may not have been returned or processed by the bank and these are processed by the bank and these are known as “outstanding” checksknown as “outstanding” checks

Mark off the checks and deposits that Mark off the checks and deposits that have cleared the bankhave cleared the bank

7.12

Reconciling Your Bank StatementReconciling Your Bank Statement

1. Write the closing balance shown on the bank statement 2. List the deposits you have made that you have made that are not shown on your statement. 3. Add the amounts from steps 1 and 2, and write the total on line 3. 4. List by number and amount all outstanding checks. Add the amounts to find out the total and write on line 4. 5. Subtract line 4 from line 3. 6. The difference should match the balance shown in your checkbook. 7. Remember to check for charges for services by the bank.

7.12

Shopping AlternativesShopping Alternatives

Discount StoreDiscount Store Specialty StoresSpecialty Stores Department StoresDepartment Stores On-lineOn-line CatalogCatalog

Outlet mallOutlet mall Resale shopsResale shops Yard salesYard sales Thrift storesThrift stores

7.13

How Advertising Influences ChoicesHow Advertising Influences Choices

BandwagonBandwagon everyone is doing iteveryone is doing it

TestimonialTestimonial celebrities tell you they use it and you want celebrities tell you they use it and you want

to be just like themto be just like them

PropagandaPropaganda flooding you with information to convince flooding you with information to convince

you that this is the right choiceyou that this is the right choice

7.14

Consumer Rights and ResponsibilitiesConsumer Rights and Responsibilities

RIGHTS:RIGHTS: The right to safety.The right to safety. The right to be informed.The right to be informed. The right to be heard.The right to be heard. The right to choose.The right to choose. The right to redress. (to have a wrong The right to redress. (to have a wrong

corrected quickly and fairly)corrected quickly and fairly) The right to consumer education.The right to consumer education.

7.15

Consumer Rights and Consumer Rights and ResponsibilitiesResponsibilities

RESPONSIBILITIES:RESPONSIBILITIES: To learn and use products safely according to To learn and use products safely according to

the manufacturer’s directions.the manufacturer’s directions. To make wise choices.To make wise choices. To seek redress when a product fails to meet To seek redress when a product fails to meet

standards.standards. To save receipts, instructions, and To save receipts, instructions, and

guarantees to provide to manufacturers if guarantees to provide to manufacturers if needed when there is a problem.needed when there is a problem.

7.15

Sources of Consumer ProtectionSources of Consumer Protection

FTC--Federal Trade CommissionFTC--Federal Trade Commission Better Business BureauBetter Business Bureau Arkansas Attorney GeneralArkansas Attorney General Consumer Product Safety CommissionConsumer Product Safety Commission Certain LawsCertain Laws

Truth In Lending LawTruth In Lending Law Lemon LawsLemon Laws

7.17

Effective Shopping SkillsEffective Shopping Skills

Consider wants, needs, and resourcesConsider wants, needs, and resources Gather informationGather information Do comparison shoppingDo comparison shopping Be flexibleBe flexible Decide where to buyDecide where to buy Evaluate sales and bargainsEvaluate sales and bargains Choose best time to buyChoose best time to buy Choose the best quality you can affordChoose the best quality you can afford Consider how to payConsider how to pay Resist impulse buyingResist impulse buying

7.16

Advantages and Disadvantages of Advantages and Disadvantages of CreditCredit ProsPros

freedom to buy when you want tofreedom to buy when you want to helps build credit ratinghelps build credit rating ability to purchase an item in times of crisisability to purchase an item in times of crisis

ConsCons have to repay in the futurehave to repay in the future lowers future income (because of payments made lowers future income (because of payments made

for past purchases)for past purchases) can affect borrowing power in the future because can affect borrowing power in the future because

of debt to income ratioof debt to income ratio

7.18

Types of InsuranceTypes of Insurance

AutomobileAutomobile HomeHome LifeLife

TERMTERM WHOLEWHOLE

LiabilityLiability HealthHealth Income protection insuranceIncome protection insurance

7.18

Reasons for Having InsuranceReasons for Having Insurance

Protect your family from financial loss in Protect your family from financial loss in case of death, fire, illness, or accident.case of death, fire, illness, or accident.

To replace items damaged or lostTo replace items damaged or lost

7.20

Occupations in Home Management Occupations in Home Management and Consumer Educationand Consumer Education

BankingBanking Credit UnionCredit Union Credit CounselorCredit Counselor Tech writer for manufacturersTech writer for manufacturers MarketingMarketing Consumer AdvocateConsumer Advocate

7.21

Personality traits needed to work Personality traits needed to work in Management / Consumer Edin Management / Consumer Ed

Good math skillsGood math skills Good communicatorGood communicator Attention to detailAttention to detail Like to work with othersLike to work with others PatiencePatience

7.22