Money $mart Review Questions: Where are you now?

1. List 5 ways that you save money at home, either by getting things at lower prices, trading or sharing with neighbors, making extra cash, or just being frugal.
2. What is an asset?
3. What is the difference between an appreciating asset and a depreciating asset? Which does more to increase your long-term wealth?
4. What is the difference between good debt and bad debt?

Exercise 1: Track all your spending for two weeks in a spending diary, and record on the worksheet provided (or make your own, if that works better for you.) Remember to include expenditures using cash, credit/debit cards, and checks.

Exercise 2: Complete the Income and Expenses worksheet for where you are now. Use the information you gathered from tracking your spending to help you. This should be a reflection of your current financial situation, not necessarily the ideal situation. You will have time later to re-work this into a spending and savings plan that will incorporate your goals.

Exercise 3: Complete the Net Worth Statement. Your assets should be listed at your best estimation of their market value, and your liabilities should be listed at total outstanding debt (not monthly debt payment).

Exercise 4: Complete the Debt Tracker worksheet.

Exercise 5: Complete the Savings and Investment worksheet.

Items to return to CEI upon completion:

• Answers to review questions
• Spending diary that covers 2 weeks, plus categorized worksheet
• Income and Expenses worksheet
• Net Worth Statement
• Debt Tracker worksheet
• Savings and Investment worksheet

These items will be reviewed and returned to you for your use and reference.

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