Family Finance

Transcription

1 Family Finance

2 2 Family Finance www: Mobile: meetings + 1 exam (test) Next meeting: 11 th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade Millar R., A Complete Guide to Family Finance, Kogan Page Publishers Israelsen C. L., R. O. Weagley, Personal & Family Finance Workbook, Kendall Hunt Pub 2006.

3 The aim of family financial management? Maximization of family wealth: V FCF n non n 1 CC 1 CC First: how we calculate realization of the general aim in nonfamily financial management? _ eco _ ben n n 3

4 4 10 steps to Value 1) CR 2) Operating Cycle 3) Assets 4) AP 5) Capital invested 6) Capital structure 7) FCF forecasting 8) IRR 9) Cost of Capital (CC) 10) V

5 5 Family Finance cases: Create himself or buy? (home products, home food or in restaurants, who should repair a tap, husband or plumber (tap expert), hire a maid? etc. Child in home or in kindergarden? (Homeschooling) Child in home or in school? Car: buy older but without the credit or a new but with credit? How many cars in a family? House or a flat? Why? A garden or a free time with fruits from a hipermarket? What kind of car? Which one?

6 6 Create himself or buy? Two + four family (2p + 4 ch). One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. A 2 (1 n), where n marg inal number 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. Cost od debt = k d = 18%; cost of equity = k e = 4.6% * (1-T b ) (remember about BELKA TAX! T b = Belka Tax Rate) of persons in family

7 7 Create himself or buy? Two adults family (2a). One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. A 2 (1 n), where n marg inal number 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. Cost od debt = k d = 18%; cost of equity = k e = 4.6% * (1-T b ) (remember about BELKA TAX! T b = Belka Tax Rate) of persons in family

8 8 Create himself or buy? Two + one + seven family (2p + 1g + 7 ch). One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. A 2 (1 n), where n marg inal number 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. Cost od debt = k d = 18%; cost of equity = k e = 4.6% * (1-T b ) (remember about BELKA TAX! T b = Belka Tax Rate) of persons in family

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