1 introduction personal finance basics and time value of money

PERSONAL FINANCIAL PLANNING
(FIN533)

CHAPTER 1
INTRODUCTION


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Personal Finance Basics and Time Value of Money

, Chapter 1
Learning Objectives
2


1. Analyze the process for making personal financial
decisions
2. Develop personal financial goals
3. Assess personal and economic factors that influence
personal financial planning
4. Determine the personal and financial opportunity
costs associated with personal financial decisions
5. Identify strategies for achieving personal financial
goals for different life situations

, The Financial Planning Process
3


Objective 1: Analyze the process for making personal
financial decisions
Personal Financial Planning is the process of managing your
money to achieve personal economic satisfaction.

This planning process allows you to control your financial situation.
Every person, family, or household has a unique financial
position, and any financial activity therefore must also be
carefully planned to meet specific needs and goals.

A comprehensive financial plan can enhance the quality of your
life and increase satisfaction by reducing uncertainty about
your future needs and resources.