**My Money**

**Lesson 1: Where Do I Begin?**

By Heather Greenwood, FCS Agent, Fauquier County

Reviewed by Celia Ray Hayhoe, CFP®, Family Resource Management
Specialist

Money problems are common. When we manage it, we can make it last
longer. It is important to:

-   Know what you want to do with your money

-   Know where your money goes

-   Know how to keep your money longer

-   Plan your spending

-   Stop using credit

**What are Values?**

Values are ideas that are important to you. They help you pick goals
that you can work on. Some families argue about money because their
values are different. Read over the list below. Put a check mark to show
how important each item is to you. Use the blank space for something you
value that is not on the list. Then have a spouse or child complete the
second chart.

  ----------------- ----------------- ----------------- -----------------
                    **Very            **Important**     **Not Important**
                    Important**                         

  **Religion**                                          

  **Education**                                         

  **Trip**                                              

  **Saving \$**                                         

  **Family**                                            

  **Health**                                            

  **Food**                                              

  **Auto                                                
  Insurance**                                           

  **Health                                              
  Insurance**                                           

  **Disability                                          
  Insurance**                                           

  **Life                                                
  Insurance**                                           

  **Clothes**                                           

  **Sports**                                            

  **Job**                                               

  **Money**                                             

  **Jewelry**                                           

  **Friends**                                           

  **New Car**                                           

  **Pay off debt**                                      

  **Buy home**                                          

  **Fun**                                               

                                                        
  ----------------- ----------------- ----------------- -----------------

  ----------------- ----------------- ----------------- -----------------
                    **Very            **Important**     **Not Important**
                    Important**                         

  **Religion**                                          

  **Education**                                         

  **Trip**                                              

  **Saving \$**                                         

  **Family**                                            

  **Health**                                            

  **Food**                                              

  **Auto                                                
  Insurance**                                           

  **Health                                              
  Insurance**                                           

  **Disability                                          
  Insurance**                                           

  **Life                                                
  Insurance**                                           

  **Clothes**                                           

  **Sports**                                            

  **Job**                                               

  **Money**                                             

  **Jewelry**                                           

  **Friends**                                           

  **New Car**                                           

  **Pay off debt**                                      

  **Buy home**                                          

  **Fun**                                               

                                                        
  ----------------- ----------------- ----------------- -----------------

**Talking About Money**

Talking about money is hard. Take some time to talk about what your
family thinks about money. Here are some tips:

1.  Clearly state the money problem. If there many problems, this step
    will take time.

2.  Let everyone share their feelings. It is not a time to judge. Use
    "I" messages rather than "You" messages. For example, "I get upset
    when the gas tank is always almost empty because I am worried about
    running out of gas." Rather than, "You never fill up the gas tank."

3.  Listen carefully to everyone. Ask questions to make sure you
    understand.

4.  Be willing to compromise.

**Setting Family Goals**

Take time to think about what you need. List your goals. Then choose the
[most]{.underline} important goal. It is better to focus on one goal and
reach it than set too many and never reach any of them.

Good goals should:

-   Be real! If you have trouble paying your bills each month, it isn't
    realistic to save for a big trip next month. It may be realistic to
    cut back on expenses and pay the bills on time or put a little money
    away to take a less expensive trip in the future.

-   Be specific! Clearly write your goals. For example, "I will save
    \$50 for the next 4 months" is more specific than "I will save more
    money."

-   Be flexible! Even the best plans can fall apart from an emergency.
    It may take a longer to reach your goal after an emergency. But it's
    better to reach them a little late than not at all.

  ----------------------------------- ---------- --------- -------- --------
  Goal                                Priority   Target    Total    Amount
                                      (high,     Date      Cost     Each
                                      middle,                       Month
                                      low)                          

  Short Term (within 1 year)                                        

                                                                    

                                                                    

  Middle Term (1-5 years)                                           

                                                                    

                                                                    

  Long Term (over 5 years)                                          

                                                                    

                                                                    
  ----------------------------------- ---------- --------- -------- --------

For more information, contact your local Virginia Cooperative Extension
Office. It will be listed under the Government Section of your phone
book.