Fin 101 Chapter 3 Essay examples

3317 Words Sep 16th, 2015 14 Pages
CH1
1.How can using personal financial planning tools help you improve your financial situation? Describe changes you can make in at least three areas.

a. Personal financial planning tools can help with expenses for house and groceries (example: making a grocery list before you go out so you don’t over spend on food that looks “yummy”), changes in investment (starting up a 401k), and increasing savings by proper financial planning.
2. Recommend three financial goals and related activities for someone in each of the following circumstances: a. A Junior in college 1. Apply for a credit card through his or her local bank to begin establishing credit 2. Begin searching for an apartment to live in after college. Also, it would
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3. Explain the life cycle of financial plans and their role in achieving your financial goals.

a. Different stages of life determine different financial plans and goals. As we enter adulthood, it becomes all more apparent that financial planning is essential to daily life. Examples of things to financially plan for are a house, family, healthcare, etc. By planning finances, it allows the opportunity to map out goals and future aspirations in a way that is economically feasible.

4. Summarize current and projected trends in the economy with regard to GDP growth, unemployment, and inflation. How should you use this information to make personal financial and career planning decisions?

GDP trends with the economic growth. If the economy is booming and doing well then the GDP will increase (direct correlation). Unemployment is low whenever the GDP is slow. Currently, unemployment is pretty low. Inflation raises the price of goods and decrease the value of money. Inflation is the most important of the 3 to think about when planning financially. Inflation can result in higher mortage rates, rent, monthly payments, etc. Unemployment and GDP can also make an impact on what to financially plan for. If unemployment is high, it is a good idea to save up.
5. Evaluate the impact of age, education, and geographic location on personal income.

a. Age, education, and geographic location can all play a role in personal income. Lower

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