- You are
away from home and your wallet is stolen with credit cards,
driver’s license, and other personal identification inside.
Do you have a list of credit card account numbers? Do you know what to do to report stolen identification?
- Your child falls off the bicycle and needs medical attention.
Can you quickly get the child’s health record with a
list of vaccinations, medication, etc.?
- Your computer is under warranty and refuses to “boot
up.” Can you find the instruction manual, receipt, and
telephone number for the computer company?
-
The water company insists you did not pay the January bill and
it’s now March. Can you find proof that this bill was paid?
The above are just a few situations where you need records
and information quickly. You can save money, valuable time,
and stress with an efficient record keeping system that’s designed
for your household. Think of your situation as a mini-business
with physical space to do the many financial tasks that are
necessary to complete.
-
Establish a workable, permanent place for handling information and storing
records.
- Make it pleasant and well arranged with
good lighting to encourage you and other to use it.
- Fancy equipment and accessories are
not necessary; however, a shoe box or a kitchen drawer will
no longer do the trick. A home computer will help with record
keeping but it’s by no means a requirement. If you
have a computer and are storing financial information on it
be sure you have security technologies such as scanning
tools to prevent account-hijacking identity theft.
- Choose one person to be responsible
for getting the routine financial tasks done but share the
information. Sharing information
about income and outgo requires records.
Sound decisions depend on valid information. If you are
a single parent, get an older child involved in record keeping.
It’s a “hand-on” approach for children
to learn about money matters and costs of running a household.
- Create a record storage system based
on value and use. Records and documents fall into three
general categories:
- records not easily replaced
- records used regularly or to make decisions
such as paying bills, making appointments(yearly physical),
and deferring taxes
- records in wallets, pocketbooks,
or carried with you
- A bank’s safe-deposit system is probably
the best place for valuables and documents difficult to
replace. These institutions provide maximum protection from
theft, fire, and other disasters. Records often kept in
a safe deposit box are titles and certificates, including
bank, birth, marriage, and stock; and pictures, video, and
computer disks of valuables or collectibles for insurance
purposes.
- Records at home are many and varied from
bills, receipts, credit statements, credit card account
numbers, education, employment, health, and military records,
to instruction manuals. You want a filing system that will
help you find records and information when needed without
any hassle.
- Records carried with you are for identification,
banking or credit purposes, medical information, etc. When
credit or debit cards are lost or stolen, you may be liable
for the first $50 of unauthorized use. Carry only one or
two credit cards with you at the most. DO NOT CARRY with
you, your social security card or number or related information
that has your social security number on it.
More information about organizing records and
information can be found in the series “Taking Control
of Your Money: Organizing Records.”
Please e-mail us with your questions, comments or suggestions at
mfurry@psu.edu
Last Update: December 15, 2004
Financial Education contact:
Marilyn M. Furry mfurry@psu.edu
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