1. What does working capital management mean to you? How do you feel about budgets and planning? Have you ever heard the phrase, "cash is king"? It means people and businesses only continue to operate effectively as long as they receive the right amount of cash at the right time to pay their expenses and make investments. Having a job that only pays you once a month means you will have to plan very carefully to cover your monthly expenses. What if your paycheck isn't sufficient to cover costs like rent, groceries, utilities, transportation, and entertainment? Will you cut back your spending, or will you go into debt to support your expenditures? What will you do with money left over at the end of the month? Will you save it, or is it party time? You need a plan, and you need to stick with it. A cash budget is one type of plan; it lists your sources of cash and your cash payments, regardless of whether they are paid with checks, online bank account payments, or debit or prepaid cash cards. The objective is to coordinate the timing of your cash receipts with your cash payments to identify potential shortfalls or surpluses. It will help you prioritize your payments and identify the need for additional funding or for uses of the cash in the event of cash surpluses. Use the following scale to complete the survey that evaluates potential financial concerns you might encounter as a student. (Note: There are no wrong answers. Add up the numbers after you answer the questions to determine the manner in which your personal relationship with finance might affect you. This exercise is intended to help you determine how you will connect, relate, and apply the concepts in this chapter to your daily life.) 1. I strongly disagree with the statement. 2. I slightly disagree with the statement. 3. I'm neutral on the subject; I neither agree nor disagree with the statement. 4. I slightly agree with the statement. 5. I strongly agree with the statement. Do I agree or disagree with... a. I don't see the value in knowing in advance about a potential cash deficit. b. I don't need to prepare for unexpected events or large expenditures. c. I don't make enough money to merit preparing a monthly budget. d. Anticipating the future value of financial variables, such as interest rates and inflation, and their effects on budgets is good for big businesses but not for me. e. I am willing to ask (or have already asked) family and friends for temporary cash to pay my bills