Chapter 1 McGraw Hill

you still have to go more in depth

What is Personal Financial Planning?

The process of managing your money to achieve personal economic satisfaction

What is the 1st advantage of Personal Financial Planning?

Increased effectiveness in obtaining, using, and protecting financial resources

What is the 2nd advantage of Personal Financial Planning?

Expanded control of financial activities to avoid excessive debt, bankruptcy, and dependence on others

What is the 3rd advantage of Personal Financial Planning?

Improved personal relationships

What is the 4th advantage of Personal Financial Planning?

Enhanced freedom from financial worries by looking to the future, anticipating expenses, and achieving personal economic goals

What is the 1st step to Personal Financial Planning?

Determine your current financial situation.

What is the 2nd step to Personal Financial Planning?

Develop financial

goals.

What is the 3rd step to Personal Financial Planning?

Identify

alternative courses of action.

What is the 4th step to Personal Financial Planning?

Evaluate your alternatives.

What is the 5th step to Personal Financial Planning?

Create and implement your financial action plan.

What is the 6th step to Personal Financial Planning?

Review and revise your plan.

What are the types of financial risks?

inflation, interest rates, income, personal, and liquidity

What is the ‘adult life cycle’?

the stages in the family and financial needs of an adult that influence financial activities and decisions.

What are the stages of the ‘adult life cycle