SOLUTION MANUAL FOR K K
Personal Financial Planning 15th Edition by
K K K K K
RandyBillingsley, Lawrence J. Gitman, Michael
K K K K K K
D. Joehnk
K K
Understanding the K
Financial Planning
K K
ProcessChapter 1
K K K
How KWill KThis KAffect KMe?
The Kheart Kof Kfinancial Kplanning Kis Kmaking Ksure Kyour Kvalues Kline Kup Kwith Khow Kyou Kspend
Kand Ksave.KThat Kmeans Kknowing Kwhere Kyou Kare Kfinancially Kand Kplanning Kon Khow Kto Kget
Kwhere Kyou Kwant Kto KbeK in Kthe Kfuture Kno Kmatter Kwhat Klife Kthrows Kat Kyou. KFor Kexample,
Khow Kshould Kyour Kplan Khandle Kthe Kprojection Kthat KSocial KSecurity Kcosts Kmay Kexceed
Krevenues Kby K2035? KAnd Kwhat Kif Kthe KgovernmentK decides Kto Kraise Ktax Krates Kto Khelp Kcover
Kthe Kfederal Kdeficit? KAn Kinformed Kfinancial Kplan Kshould Kreflect K such Kuncertainties Kand
K more.
This Kchapter Koverviews Kthe Kfinancial Kplanning Kprocess Kand Kexplains Kits Kcontext. KTopics
Kinclude Khow Kfinancial Kplans Kchange Kto Kaccommodate Kyour Kcurrent Kstage Kin Klife Kand Kthe
Krole Kthat KfinancialK
planners Kcan Kplay Kin Khelping Kyou Kachieve Kyour Kobjectives. KAfter
Kreading Kthis Kchapter Kyou Kwill Khave Ka Kgood Kperspective Kon Khow Kto Korganize K your Koverall
Kpersonal Kfinancial Kplan.
LEARNING GOALS K
LG1 KIdentify Kthe Kbenefits Kof Kusing Kpersonal Kfinancial Kplanning Ktechniques Kto
Kmanage KyourK finances.
Key Kconcept Kin Kthis Ksection Kis Kthe Kplanning Kmodel Kas Kdisplayed Kin KExhibit K1.1. KYour
Kstandard Kof Kliving Kis Kgreatly Kimpacted Kby Kyour Kspending Khabits Kand Kyour Kcommitment Kto
Ksaving. KYour Kspending Kis Kmeasured Kby Kyour Kpropensity Kto Kconsume. KWealth Kis Kthe
Ktotal Kvalue Kof Kall KpropertyK
you Kown Kless Kthe Kamount Kthat K you Kowe Kto Kothers.
ACTIVITY: K Ask Kthe Kstudents Kto Kassume Kthat Kthey Khave Kjust Kinherited K$100,000. KWhat
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
,Kwill KyouKdo Kwith Kthe Kmoney? KWrite Kdown Kthree Kways Kyou Kwill Kspend Kor Kuse Kthe
K money.
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
,Ask Kthe Kstudents Kto Kshare Kone Kitem Kwith Kthe Kclass Kand Krecord Kwhat Kthey Ksay Kso Kthat Kthe
Kentire Kclass K
can Kreflect Kon Kthe Kanswers. KHopefully, Kat Kleast Ka Kfew Kwill Kmention Kinvesting
Keven Kif Konly K$10,000 K of Kthe Kamount. K Use Ktheir Kanswers Kto Kdiscuss Ktaking Kcare Kof
Kcurrent K needs Kversus Kfuture Kneeds.
Focus Kon Ktheir Kpropensity Kto Kconsume Kand Kits Kimpact Kon Kaccumulating Kwealth. KPoint Kout
Financial KPlanning KTip, K―Be KSMART Kin KPlanning KYour KFinancial KGoals.‖
KtheK
Use KExhibit K1.2 Kto Kshow Khow Kthe Kaverage Kperson Kearns Kand Kspends Ktheir Kmoney Kand
KExhibit K1.6 KtoKhelp Kthe Kstudent Kidentify Kwhere Kthey Kare Know.
LG2 KDescribe Kthe Kpersonal Kfinancial Kplanning Kprocess Kand Kdefine Kyour Kgoals.
Dwight KEisenhower, Karmy Kgeneral Kand Kpresident, Kis Kquoted Kas Ksaying K ―Plans Kare Kuseless;
KPlanning Kis Kpriceless‖. KThe Kprocess Kof Kplanning Kallows Kyou Kto Kfocus Kon Kthe Kissues Kthat
Kare Kmost Kimportant Kand Kto Kbe Kready Kwhen Kthings Kchange.
Exhibit K1.3 Klists Kthe KSix KStep KFinancial KPlanning KProcess. KThe Kfirst Kand Kmost Kimportant
Kis Kdefining Kyour Kfinancial Kgoals. KExhibit K1.6 Klists Kgoals Kby Kage Kto Kdemonstrate Khow
Kgoals Kchange Kover Ktime. KUse Kthe Kexamples Kin KExhibit K 1.5 Kto Kask Kstudents Kif Kthe
Kassumptions Kare Krealistic. KYes,K the Kanswer Kis Kin Kthe Kexhibit, Kbut Kmany Kwill Knot Khave
Kread Kchapter Kat Kthis Kpoint. KFor Kyour Kuse, Kthe Kassumptions Kare:
Assumption K1: KSaving Ka Kfew Kthousand Kdollars Ka Kyear Kshould Kprovide Kenough Kto Kfund
Kmy Kchild‘sKcollege KEducation.
Assumption K2: KAn Kemergency Kfund Klasting K3 Kmonths Kshould Kbe Kadequate.
Assumption K3: KI Kwill Kbe Kable Kto Kretire Kat K65 Kand Kshould Khave Kplenty Kto Klive Kon Kin
Assumption K4: KI‘m Krelying Kon Kthe Krule Kof Kthumb Kthat KI Kwill Kneed Konly
Kretirement. K
K70 Kpercent Kof Kmy Kpre-K
retirement Kincome Kto Kmanage Knicely Kin Kretirement.
There Kare Kseveral Kworksheets Kin Kthe Kbook. KWorksheet K1.1 Kgives Kthe Kstudent Ka Kformat Kto
Kwrite Kdown Ktheir KPersonal KFinancial KGoals. KThere Kis Kpower Kin Kwriting Kdown Kgoals K[and
K most K any KotherK
plan]. KRecording Kthe Kgoal Kand Kthen Kreviewing Kthree Kmonths Klater Kwill
Khelp Kyou Kto Kkeep Kfocus Kon Kthe Kgoal.
LG3 KExplain Kthe Klife Kcycle Kof Kfinancial Kplans, Ktheir Krole Kin Kachieving Kyour
Kfinancial Kgoals, Khow Kto Kdeal Kwith Kspecial Kplanning Kconcerns, Kand Kthe Kuse Kof
K professional Kfinancial Kplanners.
Exhibit K1.7 Kcan Khelp Kfocus Kthe Kattention Kon Khow Kgoals Kdiffer Kbetween Kthe Kvarious Kstages
Kof Klife. KSection K1-3b Klists Kvarious Kdecisions Kthat Kyou Kwill Khave Kto Kmake Kover Kyour Klife.
KThe Ksection K1-3c Kaddresses KSpecial KPlanning KConcerns. KWorksheet K1.2 Kfocuses Kon Kthe
Kfinancial Kbenefit Kto Kthe Kfamily Kof Kthe Ksecond Kincome. KIf Kthe Ksecond Kincome Kis Kfrom Ka
Kminimum Kwage Kjob, Kit Kmay Knot Kbe KaK good Kfinancial Kdecision. KOf Kcourse Khaving Ka Kjob,
Keven Ka Kminimum Kwage Kjob, K may Kgive Kthe KpersonK psychic Kincome Kthat Kwill Koverride Kthe
K financial Kimpact.
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
, While Kperhaps Koff Ktopic, KI Krecall Ka Khigh Kschool Kscience Kteacher Kwho Kwas Ka Ksmoker. KHe
Kwalked Kthrough Kthe Kamount Kof Kmoney Khe Kspent Kon Kpurchasing Ktobacco Kproducts. K That
Kcomputation Khad Ka
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
Personal Financial Planning 15th Edition by
K K K K K
RandyBillingsley, Lawrence J. Gitman, Michael
K K K K K K
D. Joehnk
K K
Understanding the K
Financial Planning
K K
ProcessChapter 1
K K K
How KWill KThis KAffect KMe?
The Kheart Kof Kfinancial Kplanning Kis Kmaking Ksure Kyour Kvalues Kline Kup Kwith Khow Kyou Kspend
Kand Ksave.KThat Kmeans Kknowing Kwhere Kyou Kare Kfinancially Kand Kplanning Kon Khow Kto Kget
Kwhere Kyou Kwant Kto KbeK in Kthe Kfuture Kno Kmatter Kwhat Klife Kthrows Kat Kyou. KFor Kexample,
Khow Kshould Kyour Kplan Khandle Kthe Kprojection Kthat KSocial KSecurity Kcosts Kmay Kexceed
Krevenues Kby K2035? KAnd Kwhat Kif Kthe KgovernmentK decides Kto Kraise Ktax Krates Kto Khelp Kcover
Kthe Kfederal Kdeficit? KAn Kinformed Kfinancial Kplan Kshould Kreflect K such Kuncertainties Kand
K more.
This Kchapter Koverviews Kthe Kfinancial Kplanning Kprocess Kand Kexplains Kits Kcontext. KTopics
Kinclude Khow Kfinancial Kplans Kchange Kto Kaccommodate Kyour Kcurrent Kstage Kin Klife Kand Kthe
Krole Kthat KfinancialK
planners Kcan Kplay Kin Khelping Kyou Kachieve Kyour Kobjectives. KAfter
Kreading Kthis Kchapter Kyou Kwill Khave Ka Kgood Kperspective Kon Khow Kto Korganize K your Koverall
Kpersonal Kfinancial Kplan.
LEARNING GOALS K
LG1 KIdentify Kthe Kbenefits Kof Kusing Kpersonal Kfinancial Kplanning Ktechniques Kto
Kmanage KyourK finances.
Key Kconcept Kin Kthis Ksection Kis Kthe Kplanning Kmodel Kas Kdisplayed Kin KExhibit K1.1. KYour
Kstandard Kof Kliving Kis Kgreatly Kimpacted Kby Kyour Kspending Khabits Kand Kyour Kcommitment Kto
Ksaving. KYour Kspending Kis Kmeasured Kby Kyour Kpropensity Kto Kconsume. KWealth Kis Kthe
Ktotal Kvalue Kof Kall KpropertyK
you Kown Kless Kthe Kamount Kthat K you Kowe Kto Kothers.
ACTIVITY: K Ask Kthe Kstudents Kto Kassume Kthat Kthey Khave Kjust Kinherited K$100,000. KWhat
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
,Kwill KyouKdo Kwith Kthe Kmoney? KWrite Kdown Kthree Kways Kyou Kwill Kspend Kor Kuse Kthe
K money.
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
,Ask Kthe Kstudents Kto Kshare Kone Kitem Kwith Kthe Kclass Kand Krecord Kwhat Kthey Ksay Kso Kthat Kthe
Kentire Kclass K
can Kreflect Kon Kthe Kanswers. KHopefully, Kat Kleast Ka Kfew Kwill Kmention Kinvesting
Keven Kif Konly K$10,000 K of Kthe Kamount. K Use Ktheir Kanswers Kto Kdiscuss Ktaking Kcare Kof
Kcurrent K needs Kversus Kfuture Kneeds.
Focus Kon Ktheir Kpropensity Kto Kconsume Kand Kits Kimpact Kon Kaccumulating Kwealth. KPoint Kout
Financial KPlanning KTip, K―Be KSMART Kin KPlanning KYour KFinancial KGoals.‖
KtheK
Use KExhibit K1.2 Kto Kshow Khow Kthe Kaverage Kperson Kearns Kand Kspends Ktheir Kmoney Kand
KExhibit K1.6 KtoKhelp Kthe Kstudent Kidentify Kwhere Kthey Kare Know.
LG2 KDescribe Kthe Kpersonal Kfinancial Kplanning Kprocess Kand Kdefine Kyour Kgoals.
Dwight KEisenhower, Karmy Kgeneral Kand Kpresident, Kis Kquoted Kas Ksaying K ―Plans Kare Kuseless;
KPlanning Kis Kpriceless‖. KThe Kprocess Kof Kplanning Kallows Kyou Kto Kfocus Kon Kthe Kissues Kthat
Kare Kmost Kimportant Kand Kto Kbe Kready Kwhen Kthings Kchange.
Exhibit K1.3 Klists Kthe KSix KStep KFinancial KPlanning KProcess. KThe Kfirst Kand Kmost Kimportant
Kis Kdefining Kyour Kfinancial Kgoals. KExhibit K1.6 Klists Kgoals Kby Kage Kto Kdemonstrate Khow
Kgoals Kchange Kover Ktime. KUse Kthe Kexamples Kin KExhibit K 1.5 Kto Kask Kstudents Kif Kthe
Kassumptions Kare Krealistic. KYes,K the Kanswer Kis Kin Kthe Kexhibit, Kbut Kmany Kwill Knot Khave
Kread Kchapter Kat Kthis Kpoint. KFor Kyour Kuse, Kthe Kassumptions Kare:
Assumption K1: KSaving Ka Kfew Kthousand Kdollars Ka Kyear Kshould Kprovide Kenough Kto Kfund
Kmy Kchild‘sKcollege KEducation.
Assumption K2: KAn Kemergency Kfund Klasting K3 Kmonths Kshould Kbe Kadequate.
Assumption K3: KI Kwill Kbe Kable Kto Kretire Kat K65 Kand Kshould Khave Kplenty Kto Klive Kon Kin
Assumption K4: KI‘m Krelying Kon Kthe Krule Kof Kthumb Kthat KI Kwill Kneed Konly
Kretirement. K
K70 Kpercent Kof Kmy Kpre-K
retirement Kincome Kto Kmanage Knicely Kin Kretirement.
There Kare Kseveral Kworksheets Kin Kthe Kbook. KWorksheet K1.1 Kgives Kthe Kstudent Ka Kformat Kto
Kwrite Kdown Ktheir KPersonal KFinancial KGoals. KThere Kis Kpower Kin Kwriting Kdown Kgoals K[and
K most K any KotherK
plan]. KRecording Kthe Kgoal Kand Kthen Kreviewing Kthree Kmonths Klater Kwill
Khelp Kyou Kto Kkeep Kfocus Kon Kthe Kgoal.
LG3 KExplain Kthe Klife Kcycle Kof Kfinancial Kplans, Ktheir Krole Kin Kachieving Kyour
Kfinancial Kgoals, Khow Kto Kdeal Kwith Kspecial Kplanning Kconcerns, Kand Kthe Kuse Kof
K professional Kfinancial Kplanners.
Exhibit K1.7 Kcan Khelp Kfocus Kthe Kattention Kon Khow Kgoals Kdiffer Kbetween Kthe Kvarious Kstages
Kof Klife. KSection K1-3b Klists Kvarious Kdecisions Kthat Kyou Kwill Khave Kto Kmake Kover Kyour Klife.
KThe Ksection K1-3c Kaddresses KSpecial KPlanning KConcerns. KWorksheet K1.2 Kfocuses Kon Kthe
Kfinancial Kbenefit Kto Kthe Kfamily Kof Kthe Ksecond Kincome. KIf Kthe Ksecond Kincome Kis Kfrom Ka
Kminimum Kwage Kjob, Kit Kmay Knot Kbe KaK good Kfinancial Kdecision. KOf Kcourse Khaving Ka Kjob,
Keven Ka Kminimum Kwage Kjob, K may Kgive Kthe KpersonK psychic Kincome Kthat Kwill Koverride Kthe
K financial Kimpact.
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
, While Kperhaps Koff Ktopic, KI Krecall Ka Khigh Kschool Kscience Kteacher Kwho Kwas Ka Ksmoker. KHe
Kwalked Kthrough Kthe Kamount Kof Kmoney Khe Kspent Kon Kpurchasing Ktobacco Kproducts. K That
Kcomputation Khad Ka
© K2021 KCengage KLearning®. KMay Knot Kbe Kscanned, Kcopied Kor Kduplicated, Kor Kposted Kto Ka Kpublicly Kaccessible
Kwebsite, Kin KwholeKor Kin Kpart, Kexcept Kfor Kuse Kas Kpermitted Kin Ka Klicense Kdistributed Kwith Ka Kcertain Kproduct
Kor Kservice Kor Kotherwise Kon Ka
password-protected Kwebsite Kor Kschool-approved Klearning Kmanagement Ksystem Kfor Kclassroom Kuse.
