Copyright Goodheart-Willcox Co., Inc. 49 Section 2.1 Personal Financial Landscape Many programs are basic and easy to use others are more advanced and intended for more experienced users. Some programs focus on basic budgeting, while others are intended for advanced investment tracking. Your choice will depend on the functions you want and your computer skills. It is a good idea to try a demo of a program before you decide whether it will work for you. Money management software may be available as a web-based service. With a web-based service, your information is stored on a server rather than on your computer. Before enrolling in one of these programs, make sure the company is reputable and is certified as a secured site. If you prefer to store your information on your computer, there are programs you can download from a disc, from a website, or as an app. Whether you are using a web-based program or one on your computer, appropriate virus checkers, malware protections, and backup systems should be installed for your data. Online money management, like many other online activities, requires confidential information regarding your finances. Take the necessary steps to ensure that your computer and your online connections are secure before providing sensitive personal information. Check Your Understanding 1. When establishing a budget, what types of expenses should be tracked? 2. List examples of benefits of charitable giving. 3. List two examples of personal financial statements. 4. Why should an individual create a recordkeeping system for personal documents? 5. What are some tasks that can be performed using money management software? Build Your Vocabulary As you progress through this course, develop a personal glossary. This will help you build your vocabulary and prepare you for a career. Write a definition for each of the following terms and add it to your glossary. life span nature of financial planning budget spreadsheet income expense fixed expense variable expense discretionary expense pay yourself first wealth emergency fund charity social responsibility data analysis discretionary income cash flow statement net worth asset liability net worth statement liquidity recordkeeping legal document money management software Review Section 2.1