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

• There will be a FREE financial management class starting February 12 online! Click HERE to go to Coursera to join the class taught by Dr. Michael Gutter from the University of Florida.

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.
• Reserve 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.