Family Finances Management

2. Taking Stock - Financial Assessment

Getting control of your financial future starts with assessing your current situation and prioritizing your goals.

Taking inventory and determining Net Worth:

Your net worth is simply what you own (assets) minus what you owe (liabilities), and it tells you what you would have if you sold all of your assets and paid off all of your debts. The process of listing your assets and liabilities can pinpoint problem areas in your situation, such as an excessive amount of high-interest debt or inadequate emergency funds.

• Preparing and Using a Net Worth Statement (OSU)

The family income and expense statement:

Your income and expense statement shows your net cash surplus or deficit for a period of time and can help you evaluate your income and expenditures in light of your goals.

• Preparing and Using an Income and Expense Statement (OSU)
• Your Saving/Spending Plan (OSU)
• How do your expenditures compare to the national average? USDA/Center for Nutrition Policy publishes an annual report on national averages of "Expenditures on Children by Families."

Prioritizing your goals:

Deciding where your values and priorities lie may involve family discussions. Recognize that goals may initially be dictated by necessity, but can change over time. Housing, utilities, medical insurance, and transportation to work are all more critical than department store credit cards, but your plan can and should evolve to include longer-term goals as they become feasible.

• Deciding Which Bills to Pay First (OSU)
• Setting and Achieving Financial Goals (PDF) (University of Tennessee)
• Achieving Financial Goals (PDF) (University of Maryland)

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OSU Extension Education Center, Multnomah County
Caroline Cannon, OSU Extension Field Faculty, Family and Community Development
211 SE 80th Avenue
Portland  OR  97215-1597
Family Finance 503-725-2022, FAX 503-725-2020