Personal Finance Course Analysis

Despite the importance of finance, accounting, and consumer intelligence, these topics are typically neglected in high schools. Unfortunately, personal finance is often learned by trial and error. The problem with this method of learning is that it only takes one costly financial mishap to set you back for years. This is why I created a basic personal finance book for total beginners. With these concepts you can use the other books in the Smart Money series to further build your knowledge of personal finance topics.

In the textbook, there is stated every single detail about financial planning like advantages, effects, and financial planning activities. Personal financial planning involves the following process: (1) determine your current financial situation; (2) develop financial goals; (3) identify alternative courses of action; (4) evaluate alternatives; (5) create and implement a financial action plan; and (6) review and revise the financial plan. Obtaining, planning, saving, borrowing, spending, managing risk, investing and retirement and estate planning are the major key factors for the financial planning. Many factors influence financial decisions. People in their 20s spend money differently from those in their 50s. Personal factors such as age, income, household size, and personal beliefs influence your spending and saving patterns. Your life situation or lifestyle is created by a combination of factors. The article “Your financial future begins” focused on the college and school students who have limited income and they should not spend money in other extra activities. Similarly, the article also focused on the students who are graduating and it also states that every student should make financial plans so that it will helpful for them when they are busy with their life. Hence, comparing the chapter and the article, it can be clearly seen that the chapter covers almost all the aspects of the financial planning but the article only focused on the age factor for the financial planning mostly college students before and after

Every person want to handle his or her finance, but they need to choose an organized process which is call personal financial planning. I am 54 years old, living the single life. I live in a household with one other adult, and I am a full-time student and a part-time employee. Based on my current situation (Older, Single, No Dependent Children), therefore, my financial activities should include making arrangement for long-term health care coverage, develop an estate plan, buy a right insurance plan, and develop an investment program for retirement. My financial plan goals are Short-term goals, Intermediate goals, and long-term goals.

Conclude your paper by summarizing how the state of the economy influences an individual’s personal financial choices.

When it comes to the data and methods, this study used the Federal Reserve Board’s Survey of Consumer Finances (SCF), which is a repeated survey that includes the information on household income and wealth holdings; the Federal Reserve conducts this survey every three years. To test the hypothesis there are

The goal of this course is to get you thinking about personal finance issues at a point in your life when you still have time to benefit from the power of time in generating wealth to accomplish your other life goals. The financial decisions you make early in life with determine in great extent the quality of life you will enjoy later, especially given the turbulent and uncertain economic conditions. Money isn’t everything, but a lack of it will impact almost every aspect of your life and those who surround you.

Financial decisions are something everyone faces like buying a car to figuring out how to pay for students loans or debts. We are not taught about these types of financial decisions and how to go about them from a young age. In the news article Working Financial Literacy in With the Three R’s by Tara Siegel Bernard, she talks about how more states are beginning to require a personal finance instructions class. In the article Finance Course Prompts Debate by Gina Davis, she suggests incorporating financial elements into already required classes.

The Federal Reserve Board’s Survey of Consumer Finances (SCF) is a triennial cross-sectional survey of U.S. families. The study is sponsored by the Federal Reserve Board in collaboration with the Department of the Treasury. The survey data include information on family incomes, net worth, balance sheet components, credit use, pensions, income, and demographic characteristics (Bricker, et al., 2014). A strong attempt is made to select families from all economic levels. In addition, information is also included from related surveys of pension providers and the earlier surveys conducted by the Federal Reserve Board. Data from the Survey of Consumer Finances is utilized by the Federal Reserve and other branches of the government to conduct analysis. In addition, economic research centers utilize the SCF to conduct scholarly work (Board of Governors, 2014).

Chapter 8 addresses the financial questions an entrepreneur must ask before starting a business venture or expanding an existing one. Such questions as how you plan to use the money and how you plan to return the money back to the lenders. When carefully use of loans can help boost the business. There are also demerits coupled with borrowing money, such as interest charges and debt can inhibit growth.

I chose this course simply in the hopes that it would aid me in securing that foundation of knowledge and that any application of the material would result in self-betterment. At the closing of my first lecture, I was enamored with my professor Jared Pickens’ witty and exuberant demeanor. He had an undeniable passion for educating others that had cultivated through-out his years as a Financial Counselor to his current role as Senior Lecturer. Although the course had originally been designed to help students develop a sense of their own personal finances, Professor Pickens offered additional insight into the career of financial planning based on his own experiences within the field. To demonstrate our understanding of the financial planning concepts and methods, we were assigned a semester-long project in which we were to dissect an elaborate case-study and present our conclusions in a formal presentation. My partner and I wasted no time on outlining our assignment, as we were both genuinely excited about unveiling the financial complexities of our new “clients”. We spent countless evenings in the school library analyzing the data while pouring over textbooks, websites, and research to develop the perfect recommendations. In an added measure of creativity and fun, we fashioned our own faux

Life as I know it is coming to an end. For the majority of my life my parents were generous and payed for my needs and wants, but now that they opened my eyes about paying for for my own needs and wants. This topic about finance is giving me a rude of awakening about how to budget our annual salary or yearly salary with paying for our wants and taking care of our needs. When we were little we thought that money grew on trees or came from magical wishing weld, but facing the truth where money really come from which is hard work and a good education.

There is a high positive correlation between the interest rate of housing mortgage loan and the government's long-term guarantee interest rate. Mortgage institutions offering fixed rate mortgages may be adversely affected by rising interest rates, because their mortgage financing costs will increase, while mortgage interest income will remain unchanged. Lenders can reduce interest rate risk by offering adjustable rate mortgages, so mortgage income may vary with changes in financing costs as interest rates change.

She recognizes that many young people are lost when it comes to finances as they start to face the economy on their own. Throughout the text, Orman reiterates her stance on personal economic management, that financial strife may initially seem troubling, but if the right steps are taken the strife can turn into fortune. By using real life stories from her personal experiences and acquaintances, Orman makes her words of financial wisdom seem even more compelling and applicable. For instance, in the chapter titled Career Moves, Orman discusses the story of one of her pupils, Lauren, who focused on obtaining her dream career rather than more money therefore supporting Orman’s recommendation that, “If you consistently impress your manager and colleagues, you are going to step up the ladder... [and] eventually that will bring plenty of opportunity for money” (Orman 59). Moreover, Orman employs financial statistics, which not only helps readers understand her proposals but also contributes to the practicality of her arguments. As they flip through the book, readers can find multiple charts and numbers accompanying Orman’s statements.This book is great for people who need an introduction to personal finance and guidance to turn their financial woes

This paper looks the current financial state a majority of American households face today. The research explains the most common reasons why American’s have such a difficult time spending and saving their earned money wisely. It seems more often than not, working Americans are heard of as living paycheck to paycheck and are not, in any way, financially prepared for an emergency, such as a sudden illness in the family or an unexpected household repair. This paper attempts to find the reasons Americans have poor spending and savings habits, and why there are very few who are debt-free, as well as steps to take

How to properly manage money is something that should be taught to young people because it is a very important asset in everyday life. “Total consumer debt in the United States stands at nearly $2.6 trillion dollars. That works out to be nearly $8,500 in debt for every man” (Anderson). Many times teenagers are known for “throwing away” their money by spending it on unnecessary things. This is something that could easily be avoided if students were taught the proper techniques on saving and spending money. There are many different skills that students could learn if personal finance was taught in the school system. Managing money is one of those very important skills and would help to lessen the number of young people spending irresponsibly instead of