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Family Finance

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Family Finance Family Finance www: Mobile: meetings + 1 exam (test) Next meeting: 27 th October. Douglas A.,
Family Finance 2 Family Finance www: Mobile: meetings + 1 exam (test) Next meeting: 27 th October. 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 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? Car: buy older but without the credit or a new but with credit? 4 SEAT Alhambra II / Volkswagen Sharan II / Fiat Croma / Alfa Romeo 159 / Opel Vectra C / Saab 9-3 (or similar car). You plan to change car in every 6 years. In every year, car is used for 25oookm distance and for 150ooo km distance during 6 years. You have only 5ooo Euros. What do you prefer: New car (24ooo) or 4 year used one (76oo). Insurance: 3.5% for a new or 8% for an old. Your car value is in every year smaler, and go down 25%. Services (264 euros) for every 30oookm with the new or (428 euros) for Older for every 10ooo. Repair one time in every year (100 euros) for a new one, and (440 euros) for every 15ooo km for an old one. Cost of emergency transport is 0 for new and 300 euros for every 40ooo for old one. Old car uses 2 dec 3 of oil per every 100km more than a new one. Oil will costs 1,3 euro per 1 dec 3 After 6 years, you sell car for average value (15% less than value of your startup investment). 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) Family Finance 6 Family Finance www: Mobile: Next meeting: 3 th Novber. 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. 7 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? House: buy it or rent it? 8 We need home 100 m^2. You plan to change home after 50 years. In every year, house is used by 11 months. 1 month you are on vacation trips (whole July). You have only 80ooo Euros. What do you prefer: buy a house or rent it. If you buy the house: Insurance: 0.5% of house value. Tax: 2% of value. The house price/value is 120ooo Euros, repairs in every year: 2% of house value. If you rent the house, is the rental fee: 1200 eur. monthly. If you are going on vacation, you need to pay security firm: 250 eur monthly. Cost od debt = k d = 8%; cost of equity = k e = 4.5% * (1-T b ) (remember about BELKA TAX! T b = Belka Tax Rate). Family Finance 1 Family Finance www: Mobile: Next meeting: 10 th Novber. 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. 1 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? 1 Food: buy it or make it myself? 2+4 family want to decide about family food policy according to lunches and dinners. Should they make dinners in home or eat in restaurant? If you eat dinners and lunches in home you need bigger house: you need additionaly 10 m^2 of house living space. It is 10% from previous case. Insurance: 0.5% of 10% house value should be added. 10% of Tax: 2% of value. 10% of the house price/value is 120ooo Euros should be added, 10% of repairs in every year: 2% of house value. If you rent the house, is the additional 10% of rental fee: 1200 eur. monthly. Cost of home food preparation and energy for home food preparation is 20 eur/day. Alternative cost of food preparation is 12Eur/day. Food in restaurant is 30 Eur / person / day. You have only 6ooo Euros for kitchen equipment but it costs 12ooo Euros. Remember to add additional 10% flat value or 10% of renting rate. Cost od debt = k d = 8%; cost of equity = k e = 4.5% * (1-T b ) (remember about BELKA TAX! T b = Belka Tax Rate).
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