Chapter 2. Money Math
Good, solid financial planning is based on facts – money facts. If financial
planning is the roadmap, then money facts are its building blocks. You’ve
heard it said, “If you don’t know where you’re going, any path will do”! You
want to build a clear path to your future. That will involve fact gathering and
some money math.
This chapter will help you understand how to gather facts about your
finances and then analyze these facts. You will be surprised to learn that
you are probably better off than you thought you were! You will learn how
to use three important money tools: 1) Statement of Financial Position (Net
Worth Statement), 2) a Notebook Tool for Tracking Your Spending, and 3) a
Statement of Income and Expense. Then, you will use the analysis of your
money facts as a basis for setting financial goals. Finally, you will learn about
tools to use in performing helpful financial calculations.
Taking Stock of Net Worth: Your Statement of Financial Position
Real Life, Real Money
I know the facts, all right.
They’re spelled d-e-b-t....
I don’t feel like I’m getting
ahead at all, what with
the money I still owe on
my college loans, new car,
and credit cards. Sure,
I’m saving a little, but I
feel so depressed. I don’t
really know where I stand,
financially speaking.
The first step in planning your financial future is to know where you
currently stand. For this, you will take
a “snapshot” of your current financial
situation. This means knowing exactly
what your assets and liabilities are
at a particular moment in time. This
information will give you a picture of
your net worth or, as it is often called,
your Statement of Financial Position.
A good time to prepare a Statement of
Financial Position is when you have all
of your financial records for a particular
time period, such as at the end of the
calendar quarter or year. An especially
good time for preparing or updating a
Statement of Financial Position is during
the month of January, after end-of-year
statements arrive.
To complete this task, you will compile
a listing of what you own (assets) and
what you owe (liabilities). It really is
that simple. Of course, if you do not
have your money papers well organized, this step will take you longer.
Steps to Wi$ing Up – Step 2-1.
Prepare a Statement of Financial Position
Preparing a Statement of Financial Position is a fairly easy task because it
involves transferring information from money papers you have or will be
receiving. These papers include items like monthly, quarterly, or annual
statements from your bank, retirement fund, mortgage company, etc. It does
not involve an analysis of your income or spending, although it does reflect
decisions you have made about spending and saving/investing in the past.
1. Read Real Life, Real Money: Lisa Learns Her Net Worth on the following
page.
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Wi$eUp – Money Math
2. Look at Lisa’s Statement of
Financial Condition on page 2-3
as you study the following terms.
Real Life, Real Money:
Lisa Learns Her
Net Worth
Lisa is 31 and a single
mom of Julie, who is
three. Lisa finished her
college degree two
years ago, found a job
as an elementary school
teacher, and purchased
a home this year using
$20,000 of the money
she inherited from her
grandparents as a down
payment. She used the
rest of the money for a
down payment on a new
car and invested $4,000
in the stock market. Since
becoming a homeowner,
Lisa has developed
a serious interest in
financial planning.
When she obtained her
mortgage, she had to
prepare a Statement of
Financial Position. She has
decided she will keep her
Statement up-to-date on
an annual basis. That way
she can see how her net
worth changes over time.
Wi$eUp – Money Math
 Assets refer to everything
that you OWN. They include
cash and cash equivalents,
invested assets, and use assets.
Cash or cash equivalents include
checking accounts, savings
accounts, money market
accounts, and the cash value
of life insurance. Invested
assets include the money you
may have invested in the
stock market or in mutual
funds, and the money in
your retirement portfolios,
including individual
retirement accounts. Use
assets include real estate
and personal property,
automobiles, and other
things you may own. When
you add up your assets, you
may be surprised to discover
how much you “own.” Lisa
discovered that her assets
exceeded $280,000, and her
stock market portfolio grew by
$1,000!
 Liabilities refer to everything
that you OWE. It includes
credit card balances, college
loan balances, car note
balances, mortgage balances,
and any other type of personal
loan you may have. In Lisa’s
example, her total liabilities
were $163,800.
 Net worth is determined by
subtracting liabilities from
assets. In Lisa’s case, her net
worth is $123,700. This net
worth figure is a snapshot
of your current financial
situation. It is an image that is
captured at a moment in time.
It is a good idea to determine
net worth on an annual basis.
That will give you the best
idea of how your net worth
changes from year to year.
When you apply for a loan,
the lender will ask you to
provide a current Statement
of Financial Position before
finalizing the loan and may
require you to use the form
2-2
supplied by the lending
institution.
Notice on Lisa’s Statement
of Financial Position that
the final figure in the righthand column is called Total
Liabilities and Net Worth.
This figure is identical to Total
Assets and is obtained by
adding together net worth and
total liabilities.
3. Prepare your own Statement
of Financial Position using the
blank form on page 2-4. Modify
the form to account for your
various types of assets and
liabilities. Put a date on the
statement. Remember that a good
time to prepare this statement
is in January, after end-of-year
statements arrive. But you can
also prepare the statement at
any point in time. Sometimes,
the financial statements you
use to develop your net worth
statement will show different
dates. That’s all right. Just note
the dates next to the asset or
liability you have listed on the
form. When you estimate your
use assets (cars, homes, personal
property, etc.), use your best
estimate of “fair market value.”
In other words, what price would
you get if you were to sell the
asset today? Keep in mind that
homes and real estate usually
(but not always) appreciate
(increase) in value, while
automobiles and some personal
property (think computers, large
screen televisions, refrigerators)
depreciate (decrease) in value
over time.
4. Analyze your Statement of
Financial Position. Is your net
worth positive or negative?
Are you “worth” more or less
than you thought? Are there
circumstances beyond your
control that have influenced your
net worth? Some factors such as
a general decline of real estate
values in your area or an increase
in your debt because you have
recently purchased a new car
will influence your Statement
of Financial Position. Is there
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anything you can do to increase your assets and decrease your liabilities, or is your situation the result of larger
economic forces? Complete these statements:
What surprised me most about my Statement of Financial Position is:
__________________________________________________________________________________________
I can increase my assets over the next year by:
__________________________________________________________________________________________
I can decrease my liabilities over the next year by:
__________________________________________________________________________________________
5. Make a file folder to archive your Statement of Financial Position. You can add the latest copy each time you
update your net worth. Over time, these “snapshots” will help you see the changing nature of your financial
position. And someday, your grandchildren may even chuckle at this part of their “family history.”
6. (Optional Step.) If you use some type of computerized accounting system, take the time to enter your asset and
liability data into the program. Doing so will allow you to automate the preparation of a Statement of Financial
Position through the “reports” function of your accounting package.
Example – Statement of Financial Position – Lisa
As of December 31, 2009
ASSETS (at Fair Market Value)
LIABILITIES & NET WORTH
Cash/Cash Equivalents
Liabilities
Checking Accounts
$1,100
Credit Card Balances
$2,800
Savings Accounts
$3,600
Auto Note Balance
$16,000
Money Market Account
$1,800
Mortgage Note Balance
$145,000
Total Liabilities
$163,800
Net Worth
$123,700
TOTAL LIABILITIES
& NET WORTH
$287,500
Life Insurance Cash Value
Total Cash/Cash Equivalents
$6,500
Invested Assets
Stock Portfolio
$5,000
Limited Partnership
IRAs
$3,000
Pension Plans
$5,000
Total Invested Assets
$13,000
Use Assets
Residence
$165,000
Cars
$28,000
Personal Property
$75,000
Other Real Estate
Total Use Assests
TOTAL ASSETS
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$268,000
$287,500
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Wi$eUp – Money Math
My Statement of Financial Position
As of: ____________________________________ (date)
ASSETS (at Fair Market Value)
LIABILITIES & NET WORTH
Cash/Cash Equivalents
Liabilities
Checking Accounts
Credit Card Balances
Savings Accounts
Auto Note Balance
Money Market Account
Mortgage Note Balance
Life Insurance Cash Value
Total Cash/Cash Equivalents
$
Total Liabilities
$
NET WORTH
$
TOTAL LIABILITIES &
NET WORTH
$
Invested Assets
Stock Portfolio
Limited Partnership
IRAs
Pension Plans
Total Invested Assets
$
Use Assets
Residence
Cars
Personal Property
Other Real Estate
Total Use Assets
$
TOTAL ASSETS
$
Wi$eUp – Money Math
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money has gone. There are several
methods to track spending. Over
time, you will develop methods that
suit your style comfortably without
feeling overburdened by the task.
Taking Stock: Where the
Money Goes
Knowing your net worth is
important, but knowing your net
worth alone is not enough. You
should also know where your money
goes on an annual, monthly, and
daily basis. Some people keep very
close records and know where every
penny goes. Other people rely on
their monthly bank statements to
give them an idea of where their
Before you can engage in good
financial planning for the future, you
have to assess where your money
is going today and every day. Keep
in mind that how you spend money
can vary each day. The ways you
spend your money include cash or
debit card, check, and credit card.
Some people also have electronic
accounts, such as Pay Pal, but such
accounts are normally associated
with a primary checking account.
Why is it important to write down
every amount that is spent, even the
smallest cash sums? Because it is the
only sure-fire way of knowing what you
have done with your money. You cannot
make successful financial plans for
the future without knowing your
spending history.
Steps to Wi$ing Up – Step 2-2. A Notebook Tool for Tracking Your Spending
1. Get a small notebook, and make three columns that reflect how you spend your money: cash, check or debit card,
and credit card. Carry this notebook with you, and make it a habit to jot down what and how you spent your
money. Do it as it happens – before you forget. Your spending notebook can look like this:
My Spending Notebook
Date
What
Cash
Check or Debit Card
Credit Card
There is one way to save time with this task. If you are consistent and regular in entering into your checkbook
register every check, every debit card purchase, and every ATM cash withdrawal that you make, you will only
have to enter your cash and credit card purchases into your notebook. Keeping your checkbook register current is
an important step in money management because it avoids expensive overdraft charges and psychologically helps
by keeping you aware of your current balance.
2. Here’s an example from just a few days from Lisa’s notebook. Lisa has chosen to write down everything in this
notebook for a two-month period to understand how she really spends her money.
A Notebook Tool for Tracking Your Spending – Lisa’s Example
Date
What
Cash
Check or Debit
Feb 2
coffee - latte
Feb 3
#1501 utility bill
Feb 3
AmEx - new shoes
Feb 3
groceries (debit)
$34.89
Feb 4
planter (eBay/PayPal)
$16.34
Feb 6
#1502 mortgage payment
Feb 6
coke at school
Feb 7
AmEx - nails
Feb 8
#1502 day care bill
Feb 8
ATM cash withdrawal for weekend
entertainment
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Credit Card
$4.38
$156.23
$120.50
$1,372.00
$1.00
$18.00
$200.00
2-5
$62.00
Wi$eUp – Money Math
3. Use the chart below to decide right now when you will begin the process of tracking your spending and how long
you will continue it. Keeping track of your spending over a two to three-month period will give you a good idea of
how you are spending your money. Lisa tracked her spending for two months, starting February 1st. When she told
her friend Susanna how well the system was working for her, Susanna decided she should do it, too. But because
Susanna had rarely kept track of her spending, she decided she would gain a better understanding of her spending
if she tracked it for three months.
Money Tracking Goals
Lisa
Starting Date:
February 1st
February 1st
Ending Date:
March 31st
April 30th
Taking Stock: Do You Like
What You See?
Tracking your spending has no
meaning unless you analyze the
data you have recorded. You can
make your analysis as general or as
specific as you wish at this point. The
important thing is to do something
with the information. In our case
study example about Lisa, you saw
only a few days’ expenses from Lisa’s
notebook. Lisa discovered some
interesting things about herself and
her spending habits during the twomonth period that she kept records
in her notebook – and she didn’t like
everything she saw. Here were some
of her discoveries.
 Household maintenance
costs were higher then she
thought they would be. During
this period, she had several
unanticipated expenses for her
new house.
 Personal care costs were twice as
high as she expected. Having her
nails done is important to her, but
she had not realized how much
money was going for manicures.
 Clothing costs were a surprise to
Lisa. She only bought clothes with
Wi$eUp – Money Math
Susanna
My Starting/Ending
a credit card, never with a check.
Lisa realized that by using her
credit card to buy clothes, she was
allowing herself to live beyond an
affordable amount for clothing;
her credit card allowed her to
buy what she wanted, not what
she could really afford. As she
checked her closet, she discovered
new articles of clothing that she
had forgotten about and didn’t
even like. She thought she was
“saving money” by getting
them on sale.
ended in regret. Some of the
purchases in this category included
the purchase of DVDs, items bought
on sale, a few of the items she bought
on eBay, and about three too many
magazine subscriptions. Lisa liked
using a “could have lived without
it” category when she analyzed her
data. It helped her to recognize that
thinking before spending could put
her financially ahead.
 Debt repayment costs took
a lot of Lisa’s income each
month. In another chapter
of Wi$eUp, you’ll learn
some important credit
guidelines.
 Costs for her child were
affordable for Lisa, thanks
to the fact that Julie’s father
made regular child-support
payments to Lisa.
Lisa decided to include a
“could have lived without
it” category in her analysis
of spending because she was
not certain how much of the
money she was spending
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Steps to Wi$ing Up – Step 2-3. Analyze Your Spending: Do You Like What You See?
As you analyze your own data, create categories that make sense for your life. And pay special attention to the
categories of spending over which you have control. Sometimes when we feel the most strapped for money, it is
only because we have not curbed spending in the areas over which we have the most control.
1. Write down the spending categories you think you will use when you analyze the entries in your spending
notebook. Here are some ideas to get you started: work-related spending, children’s expenses, personal care,
household expenses, food, eating out, entertainment, transportation/car, and “could have lived without it.”
__________________________________________________________________________________________
__________________________________________________________________________________________
2. As you transfer information from your Spending Notebook to a Spending Analysis Sheet, make a check mark in
your Spending Notebook after transferring each entry.
3. Summarize your spending for the two or three-month period in which you tracked your spending.
Were you able to account for all of your money? ________________________
Based on your analysis, what steps do you plan to take to modify what you spend and how you spend it (cash/
check/debit/credit)?
__________________________________________________________________________________________
Taking Stock: Where the Money
Went  Statement of Income
and Expense
Hopefully, you have decided to take
action by recording how you spend
your money for the next two to three
months. Later, you will use this
information for setting financial goals
for the future and for managing the
money that flows into your life.
There will be times in your life
when you are asked to prepare a
Statement of Income and Expense.
This statement is sometimes known
as a cash flow statement. A lender
will likely require you to prepare a
Statement of Income and Expense
before qualifying you for a loan.
Preparing this statement is easy
if you have records of how your
money was spent. You already
know some of this information
because you use some of it when
you prepare your annual income tax
returns. If you use a computerized
system for tracking your income and
expenses, the program will produce
a Statement of Income and Expense
for you automatically. In this section,
you will learn how to create this
statement manually.
Steps to Wi$ing Up – Step 2-4. Prepare a Statement of Income and Expense
1. Read Real Life, Real Money: Cheryl and Rick’s Statement of Income and Expense.
Real Life, Real Money: Cheryl and Rick’s Statement of Income and Expense
Cheryl and Rick have been married just over a year. Cheryl asked Rick to help her analyze their
income and expenditures, and to develop a Statement of Income and Expense for the past
year. They were both committed to “financial harmony” in their marriage and had tried to do a
good job keeping records during the year. Because they had developed a good filing system,
it wasn’t very hard for them to pull out the money facts they needed to prepare the Statement
of Income and Expense: payroll statements, monthly bank statements, quarterly earnings
reports, annual mortgage statement, and their monthly expenses summaries.
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Wi$eUp – Money Math
2. Look at Cheryl and Rick’s Statement of Income and Expense on page 2-9 as you
refer to the following discussion.
 It is time specific. It summarizes
income received and expenses
paid for a full, 12-month year.
Cheryl and Rick’s statement is for
the 2009 calendar year.
 It has a flexible format. You may
find other Statements of Income
and Expense that look different
from this one, but they serve the
same fundamental purpose.
 Expenses are categorized as either
fixed or variable.
 Fixed expenses include savings
and investments, retirement
contributions, taxes, mortgage
or rent, debt payments, and
insurance.
 Variable expenses include food, transportation, clothing, education, medical,
utilities, and all other expenses. You may make this form as detailed or as
general as you wish.
A Statement
of Income and
Expense is timespecific. It is a
statement that
summarizes
income received
and expenses
paid for a full,
12-month year.
 Cheryl and Rick used only a few categories in making up their statement. One
thing they noticed was that the category “All Other” was quite large. They plan
to “fine-tune” this category because they want to see how $12,642 was actually
spent.
 It accommodates dual-earning couples or single persons. Notice that the form
has three columns, which are labeled “Cheryl,” “Rick,” and “Total – Both
Spouses.” If you are not married, you will be able to eliminate two of the
columns on the form. If you are married, use the self, spouse, and total columns
as needed. It will be easier for you to track income by earner but harder to
separate expenses by earner. Separating expenses is not necessary, unless you
and your spouse have a clear division of financial responsibility in paying for
certain items in your household budget and you wish for your Statement of
Income and Expense to reflect this divided financial responsibility.
 One category in which it makes sense for couples to include separate totals is
retirement savings. This category will allow you to identify opportunities to
make additional retirement contributions, especially if you are the lower-earning
spouse, are not gainfully employed outside of the home, or operate a small
business. In the case of Cheryl and Rick, Rick’s contributions towards retirement
were two times greater than Cheryl’s. They plan to try to increase Cheryl’s
contributions in the future.
3. Complete a Statement of Income and Expense for yourself or for your total
household/family situation using the blank form provided on page 2-10. Prepare
the statement for the last year in which you have complete records of income and
expenses. You can simplify the task if you go back to that year’s tax records for
some of the information, but be sure you check your W-2 statements to determine
your total salary for the year. Your tax return may show a lower taxable income
than you actually earned if you saved money for retirement at work and could
exclude your tax-deferred earnings from your gross income. Create income and
expenses categories that make sense for your particular situation.
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4. Study your completed Statement of Income and Expense. Were there:
any surprises? ____________________________________________________________________________
__________________________________________________________________________________________
any future changes you want to make in your saving and spending patterns? _____________________
__________________________________________________________________________________________
Statement of Income and Expense – Cheryl and Rick’s Sample
for the Year Ending December 31, 2009
INCOME
Cheryl
Gross Salary/Wages
Rick
$34,000
Dividend Income
Interest Income
Other Income
$42
Total – Both Spouses
$52,000
$86,000
$650
$650
$50
$92
$800
$800
TOTAL INCOME
$87,542
EXPENSES – FIXED
Savings/Investments
$1,000
$1,000
$2,000
Retirement
$3,000
$6,000
$9,000
Income Taxes
$16,800
Property Taxes
$2,500
Mortgage/Rent
$12,500
Insurance
$3,000
TOTAL FIXED EXPENSES
$45,800
EXPENSES – VARIABLE
Food
$10,000
Transportation
$8,000
Clothing/Personal
$3,000
Education
$800
Medical/Dental
$1,500
Utilities
$3,600
Vacation
$2,200
Child Care
All Other
$12,642
TOTAL VARIABLE EXPENSES
$41,742
TOTAL EXPENSES: FIXED + VARIABLE
$87,542
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Wi$eUp – Money Math
Statement of Income and Expense
for the Calendar Year Ending:
INCOME
Self
Spouse
Total − Both Spouses
Gross Salary/Wages
Dividend Income
Interest Income
Other Income
TOTAL INCOME
EXPENSES  FIXED
Savings/Investments
Retirement
Income Taxes
Property Taxes
Mortgage/Rent
Insurance
TOTAL FIXED EXPENSES
EXPENSES VARIABLE
Food
Transportation
Clothing/Personal
Education
Medical/Dental
Utilities
Vacation
All Other
TOTAL VARIABLE EXPENSES
TOTAL EXPENSES: FIXED + VARIABLE
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Setting Financial Goals
Most of us carry around mental
images of the life we would like to be
living. Whether we achieve the life
we want depends on many factors,
but the most important element for
our “dream fulfillment” is creating
concrete financial goals and a process
for achieving them. There is a big
difference between a dream and an
actual financial goal. Dreams have
a “some day” quality about them.
But financial goals can be our action
plans and roadmaps for achieving
our dreams if we narrow them down
and do the money math.
Photographs by the U.S. Census Bureau, Public
Information Office (PIO).
As you have worked through this
chapter of the Wi$eUp Handbook,
you have undoubtedly thought about
your life goals and how they relate
to money. Now is the time to specify
those goals and turn them into
financial action items.
Good financial planning and money
management always begin with goal
setting. Goals give direction and
purpose to the way money is spent.
Goals provide us with motivation
and encouragement in working
towards what is most important. For
the greatest personal satisfaction,
our financial goals should reflect
our values – our deep-rooted beliefs
about what matters most to us.
Financial goals may be short-term,
intermediate-range, or long-range.
Examples of short-term goals are: 1)
shifting from using credit to using a
debit card, 2) reducing expenditures
for a particular category of spending,
3) developing a workable budget,
and 4) building an emergency fund
or set-aside account.
Examples of intermediate-range goals
are: 1) saving for things you want
to buy in the near future, 2) saving
money for a down payment on a
house or a new vehicle, 3) saving for
the college education of a child, and
4) becoming debt-free.
Examples of long-range goals are: 1)
building a retirement portfolio, 2)
saving for a vacation home, and 3)
developing an estate plan.
There are seven basic steps involved in
setting and achieving financial goals.
Steps to Setting and
Achieving Financial Goals
1. Identify the goal, and write it
down.
2. Put a price tag on the goal.
How much money will be
needed to achieve the goal?
3. Set a target date for achieving
the goal.
4. Set priorities among your
financial goals. It may not be
possible to achieve all of them
simultaneously.
5. Develop a plan to achieve
your goals. This will mean reexamining how you presently
spend your money and
working the financial goals
into your monthly budget/
spending plan.
6. Begin to work toward the goal
immediately. Procrastination
costs money in the long run.
If you have a plan in mind for
how to accomplish your goal,
there is no reason to delay
action.
7. Keep records to monitor your
progress and success towards
accomplishing your goals.
Steps to Wi$ing Up – Step 2-5. Set Your Eye on the Goals
1. What are your life goals? You can dream here! Which ones cost money? If you need support, share your goals with
family and friends so they can encourage and help you. Write and keep these goals in your planner, office, or home
where you can see them often.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
2. Through the previous Steps to Wi$ing Up exercises, you may have identified financial goals you would like to
work on. List them here as reminders.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
3. Now it’s time to turn your dreams and ideas into financial action steps. Refer to the previous descriptions of
possible short-term, intermediate-range, and long-range goals. An example is provided in the table, My Financial
Goals, for each category. To remain realistic, identify no more than three goals for each category. That will force
you to identify the most important, most valuable goals.
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Wi$eUp – Money Math
My Financial Goals
My Short-Term Goals:
new refrigerator
My Intermediate-Range Goals
Become debt-free
My Long-Term Goals
Retirement  Roth IRA
Making Financial Calculations
Figuring costs or making financial
projections is easy to do using widely
available on-line financial calculators.
Many financial websites have
embedded
a variety
of financial
calculators
to help you
answer
the “how
much” or
“what if”
questions.
The best
websites
arrange
their calculators by category and
include a variety of different
applications within those categories.
Be sure to check your bank, credit
union, and brokerage firm websites
as many financial institutions
today provide their customers and
Wi$eUp – Money Math
Cost/Price
$1200 - save $50 per month
Cost/Price
Pay off $35,000 in debt  about
$500  $600 extra needs to be
paid monthly
Cost/Price
$5000 per year, increasing to
allowable limits  about $416
per month is needed
Target Date to Accomplish
in two years
2012
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Priority
High #1
Target Date to Accomplish
every year so I can retire in
2035
 MyMoney.Gov, http://www.
mymoney.gov/category/topic1/
calculators.html. This website
provides links to financial
calculators available at federal
agency websites. The calculators
include College Planning, Credit
Card Repayment Calculator,
Group Life Insurance for Federal
Employees, Home Buying,
Interactive worksheets to help
with retirement planning,
Investing, Mortgage Comparison
Calculator, Savings Bonds
– Current and Future Value,
Social Security Benefits, Tax
Withholding, and Thrift Savings
Plans for Federal Employees.
 Inflation Calculator, http://
data.bls.gov/cgi-bin/cpicalc.pl
and http://www.bls.gov/data/
inflation_calculator.htm. This
High #1
Target Date to Accomplish
members with on-line tools. Check
out the following websites.
Priority
Priority
High #1
calculator makes it easy to find
out how the buying power of the
dollar has changed over the years.
For example, $1.00 in 2009 has the
same buying power as 61 cents
did in 1990.
 Choose to Save Education
Program, http://www.
choosetosave.org and http://
www.choosetosave.org/
calculators/. Calculators from a
variety of sources are grouped
alphabetically by topic: auto,
bond, budget, college, credit
card, employee benefits, home,
insurance – disability, insurance
– health, insurance – life, life
expectancy, mutual funds,
paycheck planning, retiree health,
retirement, Roth IRA, savings,
Social Security, stock, and tax.
 Ballpark E$timate, http://www.
choosetosave.org/ballpark/
and http://www.choosetosave.
www.wiseupwomen.org
org/spanish/ballpark/. This
widely used online tool tells you
how much you need to save to
fund a comfortable retirement.
The Ballpark E$timate takes
complicated issues like projected
Social Security benefits and
earnings assumptions on savings,
and turns them into language
and mathematics that are easy to
understand. A Spanish-language
version is also available.
 Bankrate.com, http://www.
bankrate.com/calculators/indexof-calculators.aspx. A large array
of calculators are available within
each of the following topic areas:
mortgage, home equity, taxes,
CDs and investments, auto, debt
management, personal finance,
retirement, insurance, savings,
credit cards, and small business.
 SmartAboutMoney.org,
– National Endowment for
Financial Education http://
www.smartaboutmoney.
org/Home/FeaturedResources/
Calculators/tabid/424/Default.
aspx. Calculators are grouped
according to these topics: Daily
Decisions, 401(k) and Your
Paycheck, Home and Auto, and
Credit and Debt.
 Financial Calculators from KJE
Computer Solutions, LLC, http://
www.dinkytown.net/. This site
provides more than 350 financial
calculators for mortgage, loans,
taxes, auto, retirement savings
and planning, personal finance,
credit cards and debt, business,
investment, and savings. Make
sure to use the calculators for
your country as calculators for the
U.S., Australia, and Canada are
included at this site.
Photographs by the U.S. Census Bureau, Public Information Office
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2-13
Wi$eUp – Money Math
Are You Wi$er Now? My Action Plan for Chapter 2, Money Math
1. I want to improve my money skills.
Q Yes
Q No
2. My goals for improvement in the areas covered in Chapter 2, Money Math, are:
Q Using all of the money tools/worksheets in the chapter
Q Setting realistic financial goals
Q Other _________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
3. I plan to achieve my goals by (indicate date):
Q Attending educational programs beginning ________________________________________________
Q Utilizing the Wi$eUp Handbook and completing the Steps to Wi$ing Up exercises and worksheets
beginning _____________________________________________________________________________
Q Accessing the recommended websites beginning ___________________________________________
Q Writing up an action plan for myself and monitoring my own progress regularly
beginning _____________________________________________________________________________
Q Discussing my plans with my spouse or family (if applicable) by _____________________________
Q Other __________________________________________________________________________________
4. I plan to put these goals into action by (indicate date):
Q Preparing a Statement of Financial Position (Net Worth Statement) by _________________________
Q Tracking what and how I spent money for two to three months beginning _____________________
Q Analyzing my spending based on the two to three month tracking period beginning ____________
Q Preparing a Statement of Income and Expense for the most recent tax year by __________________
Q Putting my specific financial goals in writing by ____________________________________________
Q Archiving the critical documents I have created in my Financial Center starting ________________
Q Learning how to make financial calculations using on-line financial calculators by _______________
Q Other _________________________________________________________________________________
Wi$eUp – Money Math
2-14
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Wi$eUp On-line Resources for Learning More at http://wiseupwomen.org
The Expert Q&A Archive at
http://wiseupwomen.org has
answers from Wi$eUp’s nationwide
network of financial experts who
have responded to questions from
Wi$eUp participants on many
different financial topics. A few of the
Q and A’s that relate to this chapter
of Wi$eUp include:
The Wi$eUp Teleconference
Archive at http://wiseupwomen.org
features MP3 files and transcripts
from Wi$eUp’s bimonthly national
teleconferences featuring nationally
noted speakers on a variety of
financial topics. Some of the
teleconferences related to this
chapter of Wi$eUp include:
 Do financial advisors only work
with people who only have large
amounts of cash?
 Wi$eUp: Master your Money
 What financial books would you
recommend?
 Are there advantages to paying
my bills on-line?
 What Do I Do Now? Facing
Financial Challenges in an
Uncertain Economic Environment
 Financial Recordkeeping
 How do I go about changing
childhood spending habits?
www.wiseupwomen.org
2-15
Wi$eUp – Money Math
Wi$eUp – Money Math
2-16
www.wiseupwomen.org