Question: Let's begin this session by making a list of what we consider to be valuable papers.

Instructor's Note: As the participants call out their response, write the list on the board.

This list should have car titles, birth certificates, marriage certificates, wills, tax forms, checks, bank statements, financial papers, investment statements, etc.

Question: Where are these papers currently located?

Explain: Recordkeeping is sometimes called a necessary evil. It is something that we all should do, but most of us don't enjoy it or do it. Having a good system for keeping important papers and organizing records can save time, money and effort.

Activity: To determine where you are, let's answer the questions on this Record Keeping Work Sheet. Some of the questions in the work sheet may spark some thoughts and ideas about where your records are in your home.

Explain: If you answered "no" to some of the questions, this session can help you out.

Question: Did anyone answer "yes" to all eight questions?

First let's talk about why it is important to keep these records in an organized manner.

Question: What are some of the benefits of organizing your papers?

Instructor's Note: Write the participants' responses on the board.

Explain: Record systems differ from household to household. There are some decisions that need to be made before setting up a record-keeping system.

First, decide on one place to keep all of your records. You need an organized system. Just tossing old receipts into a shoe box isn't enough. It may be that you need to invest in a file cabinet or some type of organized shelving for your home.

Explain: Second, you will have to decide on a person.

Question: Who in your family currently does the record keeping?

Explain: Decide which family member will have the major responsibility for doing the record keeping. This is sometimes difficult because, as we said before, no one really wants this job.

Compromise and communication in this process is important. Everyone in the family needs to cooperate and understand how the system works. Partners might switch places once a year to be sure both know what is going on with the records.

Explain: Finally, you need a routine.

Question: How many of you have a specific day or week you do your record keeping? Can you share your routine with us?

Explain: The main idea is to set a specific time to handle all of your bookkeeping and try to stick to it. If you establish a regular routine, you can cut down on the time you need to spend doing the record keeping.

It will take some effort and time in the beginning, but having an organized place, person and routine for record keeping is a goal we all can achieve.

Explain: It is important that your records are in a safe place. The best option for valuable papers that are costly and may be hard or even impossible to replace (such as car titles, birth certificates and marriage certificates) is a safe deposit box at your financial institution.

Another option might be a fireproof safe or filing cabinet in your home. Unfortunately, few of these are truly "fireproof" or "theft-proof." Today, the minimum industry standard for protection is a product with a one- hour VDMA certificate rating. It is recommended that you purchase the higher two-hour VDMA certificate rating.

Transition Statement: However, you would not want to keep all your files in a safe at your financial institution. This could make access to records difficult and timely. Let's discuss how you decide which records you should keep on hand, and which should be filed away.

The first we have already discussed - Valuable papers. Valuable papers include car titles, birth certificates and marriage certificates, and other records that are difficult to replace, and, if possible, should be kept in a safe.

The second is current records, including yearly bills and receipts. These records need a temporary "keeping place."

A cardboard box or set of file folders works great. You also may want to write these types of things in a home account book or some other sort of record of household expenses. These records will save you time when you need financial information.

A permanent file is the third type of record. What should be kept in a permanent file is a little more difficult to determine.

Question: What records do you think should be kept permanently?

Activity: Distribute the two work sheets. Highlight the five bold points on the IRS worksheet and discuss the items listed in the table. Explain all information listed on the Keeping Financial Records Work Sheet.

Explain: Tax time is a good time to transfer any current records that you may need in the future into permanent files. As you look for items you need at tax time, throw out the things you no longer need.

Setting up a filing system will take some time. Each individual household has differences and there is no right or wrong way to do it.

Activity: We have a work sheet that suggests a system you might start with and then adapt to fit your family's needs.

Explain: You may also want to consider having:

• Active Files - includes records that are used at least yearly or that may need to be reviewed without much notice, such as checking the number on an insurance policy.
• Dead Storage - usually includes records that might have to be reviewed at some point in the future but are not normally needed in the course of the year, such as income and tax records from five years ago.

Explain: We probably have all become stressed and spent lots of time looking for valuable papers.

Question: What happens if we cannot find the important papers?

Explain: Often it can cost money and time to replace them. Some papers cannot be replaced and are lost forever. It is important that you inform others about your record keeping system.

Instructor's Note: Highlight the four steps to take to inform others of the location of valuable papers listed on Slide #7. Bullets will appear upon a second mouse click.

Question: Do any of you have records of your personal property or things you own, such as your home computer, kitchen appliances, televisions, etc.?

How did you take inventory?

Explain: It is suggested that you use a videotape or photographs of your personal property. You also can save receipts of things you purchase. Having an inventory of your property would be very beneficial in the case of a fire or burglary.

Explain: Organizing all of these documents is a big job, but is important in emergency situations and times when you can't take care of things yourself.

Take the time right now to help yourself, your family and others by taking charge and getting all of your very important papers in order. You'll be glad you did.

Lesson Summary:
Congratulations! You have completed Keeping Records in Order in this Money Management series of classes.

We've covered information about identifying the valuable papers you need to file and techniques for creating a record system.

Question: Are there any questions?