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*Personal Financial Literacy Resource Guide*

Chapter 2 Introduction

Successful money management is based on organized financial records, accurate personal financial statements, and effective budgeting. This chapter offers a discussion of the importance and type of financial documents followed by an explanation of the components and procedures for preparing personal financial statements—the balance sheet and the cash flow statement. Next, the chapter covers the basics of developing, implementing, and evaluating a budget. Finally, savings techniques for achieving financial goals are discussed.

LO 2.2: Create a personal balance sheet and cash flow statement (Balance Sheet)

LO 2.2: Create a personal balance sheet and cash flow statement (Cash Flow Statement - Expenses)

LO 2.4: Connect money management activities with saving for personal financial goals

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