Case 1:UNDERSTANDING HOUSEHOLD CASH FLOW AND DEVELOPING A PERSONAL/HOUSEHOLD BUDGET

Case Assignment

1. Begin Module 1 by first viewing and printing the CashFlow-BudgetTemplate, which can be accessed through the link in your Background Resources section. It will be helpful for you to print the Cash Flow Statement Template page so that you can refer to it while you read the two articles in step 2.
2. After viewing/printing the CashFlow-BudgetTemplate, follow the links in the Module 1 Resources section, read, study, and take notes on The Importance of Cash Flow Management, and read, study, and take notes on How to Create a Personal Cash Flow Statement. These two articles can be accessed through the links in the Module 1 Background Resources section.
3. After completing steps 1 and 2, in a three- to four-page paper (including the cover page and references list) Define and discuss the following:
   • The purpose of a Personal Cash Flow Statement
   • The purpose of a Personal/Household Budget
   • The difference(s) between a Personal Cash Flow Statement and a Personal/Household Budget in terms of the data, and in terms of the use of the data (i.e., where does the data come from, and what is the data used for?)
   • Challenges you may face developing the cash flow estimate
   • Describe an emergency fund, its use, how it is built
   • The following terms:
     1. Take-Home Income
     2. Monthly Living Expenses
     3. Secured Debts
     4. Unsecured Debt
     5. Disposable Income
     6. Disposable income as a percent of total income

Assignment Expectations

• Complete the three- to four-page essay (including a cover page and references) using 12 pt. Times New Roman font throughout the entire document.

• Please start your assignment with a cover page. Your cover page must be a separate page that includes your name, the name of the course, the name of the assignment, and the date – all in 12 pt. Times New Roman font. Refer to the example assignment. The link to the example assignment is in the Module 1 Background Resources section. Do not use a cover page template.

• APA formatted in-text citations, and an APA formatted References list are required. Refer to the instructions for Word’s References Tool. The link to the instructions are in the Module 1 Background Resources section.

• When you have completed the case assignment(s) upload your work to this Module’s Case dropbox.