Financial Management and Economic Well-Being

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish yours and your family's objectives. The overall goal of this program is to provide Miami-Dade County residents with practical and objective information which can help families and individuals plan their financial future and reach their goals. Specific emphasis includes helping youth and adults to:

• Develop spending and saving plans
• Manage credit, reduce debt and pay bills on time
• Learn to evaluate alternatives and avoid frauds in the marketplace
• Learn effective consumer and shopping skills

Personal Financial Management Updates/News

Important Topics of Personal Financial Management

Understanding Your Finances 

• Tracking Your Expenses 
  The basic of your expenses on how to identify your expenses and the different types you have.
• Controlling Expenses 
  This article will help you learn and understand how to control your current expenses.
• Creating a Budget for You and/or Your Family
   After understanding your expense, learning how to properly budget your money will allow you more freedom, this topic will help you understand the fundamentals of creating your budget.
• Building a Spending Plan 
  Sometimes called a spending plan, this series will teach you how to create a budget from scratch as well.
• Financial Security: Managing your Money in Tough Times
  In this series of articles, Extension helps you understand how to survive difficult financial times.

Interest & Interest Rates

• Time Value of Money
  The value of money received at different points in time, given a certain interest rate; present value versus future value.
• Introduction to Interest
  The difference between simple interest and compound interest; why compound interest grows so quickly compared to simple interest.
• Interest Part 2
  How to develop the formulas behind simple and compound interest, and an example of the striking difference between the two.
• Introduction to Present Value
  How to decide whether it is better to have a sum of money today or in the future.
• Present Value 2
  How to calculate the present value of different amounts of money received at different points in time.
• Present Value 3
  What happens to the present value of money when you change the discount rate (or interest rate)?
• Introduction to Compound Interest
  What compound interest is, how it works, and the math behind it.
• The Rule of 72 for Compound Interest
  How and why the Rule of 72 is an easy way to estimate the impact of compound interest.
• Introduction to Continuous Compound Interest
  How and why interest compounds (grows) over various time periods with a more detailed examination of the math behind the process

Personal Debt

• Annual Percentage Rate (APR) and Effective APR
  How to calculate the effective APR from a stated APR, and the difference between the two.
• Renting vs. Buying a Home
  How to make an apples-to-apples comparison of the costs of renting a home versus buying a home.
• Mortgage Interest Rates
  Different types of mortgages explained (such as fixed and adjustable rate), along with the relationship of principal and interest in a standard mortgage payment.
• Home Equity Loans
  How to use equity in a home to create cash via a home equity loan
• The Discount Rate
  The basics of the Fed funds rate and the discount rate from the Federal Reserve Bank.
• Personal Bankruptcy: Chapters 7 and 13
  How personal bankruptcy works, and the differences between Chapter 7 (straight bankruptcy) and Chapter 13 (reorganization) and their consequences.
• Payday Loans
  How payday loans work and the very high price borrowers pay who use these loans.
• Reverse Mortages 
  The basics of Reverse Mortages such as requirements, who should or should not get a reverse mortgage, risks associated with these mortgages, and more...

Income and Estate Tax

• Basics of US Income Tax Rate Schedule
  An explanation of how income is taxed at various income tax rates, and how a marginal tax rate affects a taxpayer.
• Tax Deductions Introduction
  What a tax deduction is, common misperceptions, and the difference between a deduction and a tax credit.
• Alternative Minimum Tax (AMT)
  How the Alternative Minimum Tax works in general, and why it is in the tax code at all.
• Estate Tax Introduction
  What an estate tax is and how it is calculated.
• Tax Brackets and Progressive Taxation
  How tax brackets work for higher levels of income, on an incremental basis.
• Calculating Federal Taxes and Take-Home Pay
  How the standard deduction and personal exemptions impact a person's federal taxable income.

Retirement

• Retirement Need Analysis: How Much of My Current Income Will I Need for Retirement? 
  Basic information on planning for retirement.
• Individual Retirement Account (IRA) 
  The basics of what are IRAs what the types of retirement accounts are avilable to use.
• Traditional IRAs
  What a traditional IRA is, how it works, and its features and benefits
• Roth IRAs
  What a Roth IRA is, how it works, its features and benefits, and how its different from a traditional IRA.
• 401(k)s
  What a 401(k) is, how it compares to a traditional IRA, and how a 401(k) works.