ch 8 - personal financial life cycle

What is the personal financial life cycle

The personal finanacial life cycle is the term used to describe the financial resources we requre to meet our needs and wants at different stages of our life

What are the stages in the personal financial life cycle, and what ages are they for

Dependent (0-20) independent (20-35) growth (35-55) maturity (55-65) retirement (65-80)

What are the needs and wants and sources of finance at the dependent stage

Needs - food, clothing, shelter and education costs

Wants - music festival, new phone

Sources of finance - parents/guardians and maybe a part time job

What are the needs and wants and sources of finance at the independent stage

Needs - food, clothing, shelter

Wants - car

Sources of finance - wages/salar, jobseekers benefit

What are the needs and wants and sources of finance at the growth stage

Needs - food, clothing, shelter, car, household expenses

Wants - holiday

Sources of finance - wages/salar, child benefit

What are the needs and wants and sources of finance at the maturity stage

Needs - food, clothing, shelter, childrens college fees

Wants - holiday

Sources of finance - wages, bonuses, jobseekers benefit

What are the needs and wants and sources of finance at the rtirement stage

Needs - food clothing shelter

Wants - holidays

Sources of finance - Pension, savings