SOLUTION MANUAL FOR PERSONAL
FINANCIAL PLANNING 15TH EDITION BY
RANDY BILLINGSLEY, LAWRENCE J. GITMAN
MICHAEL D. JOEHNK
,
,Understanding the c c
Financial Planning Process
c c c
Chapter 1
c c
How cWill cThis cAffect cMe?
The cheart cof cfinancial cplanning cis cmaking csure cyour cvalues cline cup cwith chow cyou cspend
cand csave. cThat cmeans cknowing cwhere cyou care cfinancially cand cplanning con chow cto cget
cwhere cyou cwant cto cbe cin cthe cfuture cno cmatter cwhat clife cthrows cat cyou. cFor cexample,
chow cshould cyour cplan chandle cthe cprojection cthat cSocial cSecurity ccosts cmay cexceed
crevenues cby c2035? cAnd cwhat cif cthe cgovernment cdecides cto craise ctax crates cto chelp ccover
cthe cfederal cdeficit? cAn cinformed cfinancial cplan cshould creflect csuch cuncertainties cand
cmore.
This cchapter coverviews cthe cfinancial cplanning cprocess cand cexplains cits ccontext. cTopics
cinclude chow cfinancial cplans cchange cto caccommodate cyour ccurrent cstage cin clife cand cthe
crole cthat cfinancial cplanners ccan cplay cin chelping cyou cachieve cyour cobjectives. cAfter
creading cthis cchapter cyou cwill chave ca cgood cperspective con chow cto corganize cyour coverall
cpersonal cfinancial cplan.
LEARNING cGOALS
LG1 cIdentify cthe cbenefits cof cusing cpersonal cfinancial cplanning ctechniques cto cmanage
cyour cfinances.
Key cconcept cin cthis csection cis cthe cplanning cmodel cas cdisplayed cin cExhibit c1.1. cYour
cstandard cof cliving cis cgreatly cimpacted cby cyour cspending chabits cand cyour ccommitment cto
csaving. cYour cspending cis cmeasured cby cyour cpropensity cto cconsume. cWealth cis cthe ctotal
cvalue cof call cproperty cyou cown cless cthe camount cthat cyou cowe cto cothers.
ACTIVITY: c Ask cthe cstudents cto cassume cthat cthey chave cjust cinherited c$100,000. cWhat
, cwill cyou cdo cwith cthe cmoney? cWrite cdown cthree cways cyou cwill cspend cor cuse cthe cmoney.
FINANCIAL PLANNING 15TH EDITION BY
RANDY BILLINGSLEY, LAWRENCE J. GITMAN
MICHAEL D. JOEHNK
,
,Understanding the c c
Financial Planning Process
c c c
Chapter 1
c c
How cWill cThis cAffect cMe?
The cheart cof cfinancial cplanning cis cmaking csure cyour cvalues cline cup cwith chow cyou cspend
cand csave. cThat cmeans cknowing cwhere cyou care cfinancially cand cplanning con chow cto cget
cwhere cyou cwant cto cbe cin cthe cfuture cno cmatter cwhat clife cthrows cat cyou. cFor cexample,
chow cshould cyour cplan chandle cthe cprojection cthat cSocial cSecurity ccosts cmay cexceed
crevenues cby c2035? cAnd cwhat cif cthe cgovernment cdecides cto craise ctax crates cto chelp ccover
cthe cfederal cdeficit? cAn cinformed cfinancial cplan cshould creflect csuch cuncertainties cand
cmore.
This cchapter coverviews cthe cfinancial cplanning cprocess cand cexplains cits ccontext. cTopics
cinclude chow cfinancial cplans cchange cto caccommodate cyour ccurrent cstage cin clife cand cthe
crole cthat cfinancial cplanners ccan cplay cin chelping cyou cachieve cyour cobjectives. cAfter
creading cthis cchapter cyou cwill chave ca cgood cperspective con chow cto corganize cyour coverall
cpersonal cfinancial cplan.
LEARNING cGOALS
LG1 cIdentify cthe cbenefits cof cusing cpersonal cfinancial cplanning ctechniques cto cmanage
cyour cfinances.
Key cconcept cin cthis csection cis cthe cplanning cmodel cas cdisplayed cin cExhibit c1.1. cYour
cstandard cof cliving cis cgreatly cimpacted cby cyour cspending chabits cand cyour ccommitment cto
csaving. cYour cspending cis cmeasured cby cyour cpropensity cto cconsume. cWealth cis cthe ctotal
cvalue cof call cproperty cyou cown cless cthe camount cthat cyou cowe cto cothers.
ACTIVITY: c Ask cthe cstudents cto cassume cthat cthey chave cjust cinherited c$100,000. cWhat
, cwill cyou cdo cwith cthe cmoney? cWrite cdown cthree cways cyou cwill cspend cor cuse cthe cmoney.
