Solution Manual for Personal Financial
Planning 16th Edition by Billingsley & Gitman,
All Chapters 1 – 15
, Table of Contents
Part I: FOUNDATIONS OF FINANCIAL PLANNING.
1. Understanding the Financial Planning Process.
2. Developing Your Financial Statements and Plans.
3. Preparing Your Taxes.
Part II: MANAGING BASIC ASSETS.
4. Managing Your Cash and Savings.
5. Making Automobile and Housing Decisions.
Part III: MANAGING CREDIT.
6. Using Credit.
7. Using Consumer Loans.
Part IV: MANAGING INSURANCE NEEDS.
8. Insuring Your Life.
9. Insuring Your Health.
10. Protecting Your Property.
Part V: MANAGING INVESTMENTS.
11. Investment Planning.
,12. Investing in Stocks and Bonds.
13. Investing in Mutual Funds and Real Estate.
Part VI: RETIREMENT AND ESTATE PLANNING.
14. Planning for Retirement.
15. Preserving Your Estate.
, Chapter 1 Understanding the Financial Planning Process
How Will This Affect Me?
The heart of financial planning is making sure your values line up with how you spend and
save. That means knowing where you are financially and planning on how to get where you
want to be in the future no matter what life throws at you. For example, how should your
plan handle the projection that Social Security costs may exceed revenues by 2035? And
what if the government decides to raise tax rates to help cover the federal deficit? An
informed financial plan should reflect such uncertainties and more.
This chapter overviews the financial planning process and explains its context. Topics
include how financial plans change to accommodate your current stage in life and the role
that financial planners can play in helping you achieve your objectives. After reading this
chapter you will have a good perspective on how to organize your overall personal
financial plan.
LEARNING GOALS
LG1 Identify the benefits of using personal financial planning techniques to manage
your finances.
Key concept in this section is the planning model as displayed in Exhibit 1.1. Your
standard of living is greatly impacted by your spending habits and your commitment to
saving. Your spending is measured by your propensity to consume. Wealth is the total
value of all property you own less the amount that you owe to others.
ACTIVITY: Ask the students to assume that they have just inherited $100,000. What will
you do with the money? Write down three ways you will spend or use the money.
Planning 16th Edition by Billingsley & Gitman,
All Chapters 1 – 15
, Table of Contents
Part I: FOUNDATIONS OF FINANCIAL PLANNING.
1. Understanding the Financial Planning Process.
2. Developing Your Financial Statements and Plans.
3. Preparing Your Taxes.
Part II: MANAGING BASIC ASSETS.
4. Managing Your Cash and Savings.
5. Making Automobile and Housing Decisions.
Part III: MANAGING CREDIT.
6. Using Credit.
7. Using Consumer Loans.
Part IV: MANAGING INSURANCE NEEDS.
8. Insuring Your Life.
9. Insuring Your Health.
10. Protecting Your Property.
Part V: MANAGING INVESTMENTS.
11. Investment Planning.
,12. Investing in Stocks and Bonds.
13. Investing in Mutual Funds and Real Estate.
Part VI: RETIREMENT AND ESTATE PLANNING.
14. Planning for Retirement.
15. Preserving Your Estate.
, Chapter 1 Understanding the Financial Planning Process
How Will This Affect Me?
The heart of financial planning is making sure your values line up with how you spend and
save. That means knowing where you are financially and planning on how to get where you
want to be in the future no matter what life throws at you. For example, how should your
plan handle the projection that Social Security costs may exceed revenues by 2035? And
what if the government decides to raise tax rates to help cover the federal deficit? An
informed financial plan should reflect such uncertainties and more.
This chapter overviews the financial planning process and explains its context. Topics
include how financial plans change to accommodate your current stage in life and the role
that financial planners can play in helping you achieve your objectives. After reading this
chapter you will have a good perspective on how to organize your overall personal
financial plan.
LEARNING GOALS
LG1 Identify the benefits of using personal financial planning techniques to manage
your finances.
Key concept in this section is the planning model as displayed in Exhibit 1.1. Your
standard of living is greatly impacted by your spending habits and your commitment to
saving. Your spending is measured by your propensity to consume. Wealth is the total
value of all property you own less the amount that you owe to others.
ACTIVITY: Ask the students to assume that they have just inherited $100,000. What will
you do with the money? Write down three ways you will spend or use the money.
