SOLUTION MANUAL Personal Finance, 14th
-- -- -- -- --
Edition By E. Thomas Garman,
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Chapter 1 - 17 -- -- --
,TABLE OF CONTENTS -- -- - -
Part I: FINANCIAL PLANNING.
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1. Understanding Personal Finance. -- --
2. Career Planning. --
3. Financial Statements, Goals, and Budgets.
-- -- -- -- --
Part II: MONEY MANAGEMENT.
-- -- --
4. Managing Income Taxes. -- --
5. Managing Checking and Savings Accounts.
-- -- -- --
6. Building and Maintaining Good Credit.
-- -- -- --
7. Credit Cards and Consumer Loans.
-- -- -- --
8. Vehicles and Other Majory Purchases.
-- -- -- --
9. Obtaining Affordable Housing. -- --
Part III: INCOME AND ASSET PROTECTION.
-- -- -- -- --
10. Managing Property and Liability Risk.
-- -- -- --
11. Planning for Health Care Expenses.
-- -- -- --
12. Life Insurance Planning.
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Part IV: INVESTMENTS.
-- --
13. Investment Fundamentals. --
,14. Investing in Stocks and Bonds.
-- -- -- --
15. Mutual and Exchange-Traded Funds.
-- -- --
16. Real Estate and High-Risk Investments.
-- -- -- --
17. Retirement and Estate Planning.
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SolutionandAnswerGuide - - -
GARMAN/FOX,- - PERSONAL- - - - FINANCE- - - - 14E,- - CHAPTER- - - - 1:- - THINKING- - - - LIKE- - - - AY- - FINANCIAL- - - -
PLANNER
TABLE OF CONTENTS
- -- --
Answers- - to- - Chapter- - Concept- - Checks ...................................................................................2
What- - Do- - You- - Recommend- - Now? ........................................................................................4
Let’s- - Talk- - About- - It ...................................................................................................................5
Do- - the- - Math ...............................................................................................................................6
Financial- - Planning- - Cases ............................................................................................................8
Extended- - Learning..................................................................................................................... 10
, ANSWERS TO CHAPTER CONCEPT CHECKS
-- -- -- --
LO1.1- - Recognize- - the- - keys- - to- - achieving- - financial- - success.
1. Explain- - the- - five- - steps- - in- - the- - financial- - planning- - process.
Answer:- - There- - are- - five- - fundamental- - steps- - to- - the- - personal- - financial- - planning- - process:
(1)- - evaluate- - your- - financial- - health- - to- - your- - education- - and- - career- - choice;- - (2)- -
define- - your--financial- - goals;- - (3)- - develop- - a- - plan- - of- - action- - to- - achieve- - your- -
goals;- - (4)- - implement--spending- - and- - saving- - plans- - to- - monitor- - and- - control- -
progress- - toward- - your- - goals;- - and- - (5)--review- - your- - financial- - progress- - and- - make- -
changes- - as- - appropriate.
2. Distinguish- - among- - financial- - success,- - financial- - security,- - and- - financial- - happiness.
Answer:- - Financial- - success- - is- - the- - achievement- - of- - financial- - aspirations- - that- - are- -
desired,--planned,- - or- - attempted.- - Success- - is- - defined- - by- - the- - individual- - or- - family- -
that- - seeks- - it.
Financial- - success- - may- - be- - defined- - as- - being- - able- - to- - live- - according- - to- - one’s- -
standard- - ofy--living.- - Financial- - security- - is- - that- - comfortable- - feeling- - that- - your- -
financial- - resources- - will- - be--adequate- - to- - fulfill- - any- - needs- - you- - have- - as- - well- -
as- - your- - wants.- - Financial- - happiness- - is--the- - experience- - you- - have- - when- - you- -
are- - satisfied- - with- - money- - matters.- - People- - who- - are--happy- - about- - their- -
finances- - will- - see- - a- - spillover- - into- - positive- - feelings- - about- - life- - in--general.
3. Summarize- - what- - you- - will- - accomplish- - studying- - personal- - finance.
Answer:- - Several- - things- - can- - be- - accomplished- - by- - studying- - personal- - finance.- -
Recognize- - how--to- - manage- - unexpected- - and- - expected- - financial- - events.- - Pay- - as- -
little- - as- - possible- - in- - income--taxes.- - Understand- - how- - to- - effectively- - comparison- -
shop- - for- - vehicles- - and- - homes.- - Protect--what- - we- - own.- - Invest- - wisely.- - Accumulate- -
and- - protect- - the- - wealth- - that- - we- - may- - choose- - to- - spend- - during- - our- - non-working- -
years- - (e.g.,- - retirement)- - or- - donate.
4. What- - are- - the- - building- - blocks- - to- - achieving- - financial- - success?
Answer:- - The- - building- - blocks- - for- - achieving- - financial- - success- - include- - a- -
foundation- - ofy--regular- - income- - that- - provides- - the- - means- - to- - support- - your- -
lifestyle- - and- - save- - for- - desired--goals- - in- - the- - future.- - The- - foundation- - supports- - a- -
base- - of- - various- - banking- - accounts,--insurance- - protection,- - and- - employee- - benefits.- -
Then- - we- - can- - establish- - goals,- - a--recordkeeping- - system,- - a- - budget,- - and- - an- -
emergency- - savings- - fund.- - We- - will- - also- - manage--various- - expenses- - such- - as- - housing,-
- transportation,- - insurance,- - and- - the- - payment- - of- - taxes.--We- - will- - also- - need- - to- -
handle- - credit,- - savings,- - and- - educational- - costs.- - Finally,- - we- - invest- - in--various- -
investment- - alternatives- - such- - as- - mutual- - funds,- - stocks,- - and- - bonds,- - often- - for- -
retirement.- - As- - a- - result- - of- - all- - these- - building- - blocks,- - we- - are- - more- - apt- -
to- - have- - a--financially- - successful- - life.
LO1.2- - Understand- - how- - the- - economy- - affects- - your- - personal- - financial- - success.
1. Summarize- - the- - phases- - of- - the- - business- - cycle.
-- -- -- -- --
Edition By E. Thomas Garman,
-- -- -- --
Chapter 1 - 17 -- -- --
,TABLE OF CONTENTS -- -- - -
Part I: FINANCIAL PLANNING.
-- -- --
1. Understanding Personal Finance. -- --
2. Career Planning. --
3. Financial Statements, Goals, and Budgets.
-- -- -- -- --
Part II: MONEY MANAGEMENT.
-- -- --
4. Managing Income Taxes. -- --
5. Managing Checking and Savings Accounts.
-- -- -- --
6. Building and Maintaining Good Credit.
-- -- -- --
7. Credit Cards and Consumer Loans.
-- -- -- --
8. Vehicles and Other Majory Purchases.
-- -- -- --
9. Obtaining Affordable Housing. -- --
Part III: INCOME AND ASSET PROTECTION.
-- -- -- -- --
10. Managing Property and Liability Risk.
-- -- -- --
11. Planning for Health Care Expenses.
-- -- -- --
12. Life Insurance Planning.
-- -- --
Part IV: INVESTMENTS.
-- --
13. Investment Fundamentals. --
,14. Investing in Stocks and Bonds.
-- -- -- --
15. Mutual and Exchange-Traded Funds.
-- -- --
16. Real Estate and High-Risk Investments.
-- -- -- --
17. Retirement and Estate Planning.
-- -- --
SolutionandAnswerGuide - - -
GARMAN/FOX,- - PERSONAL- - - - FINANCE- - - - 14E,- - CHAPTER- - - - 1:- - THINKING- - - - LIKE- - - - AY- - FINANCIAL- - - -
PLANNER
TABLE OF CONTENTS
- -- --
Answers- - to- - Chapter- - Concept- - Checks ...................................................................................2
What- - Do- - You- - Recommend- - Now? ........................................................................................4
Let’s- - Talk- - About- - It ...................................................................................................................5
Do- - the- - Math ...............................................................................................................................6
Financial- - Planning- - Cases ............................................................................................................8
Extended- - Learning..................................................................................................................... 10
, ANSWERS TO CHAPTER CONCEPT CHECKS
-- -- -- --
LO1.1- - Recognize- - the- - keys- - to- - achieving- - financial- - success.
1. Explain- - the- - five- - steps- - in- - the- - financial- - planning- - process.
Answer:- - There- - are- - five- - fundamental- - steps- - to- - the- - personal- - financial- - planning- - process:
(1)- - evaluate- - your- - financial- - health- - to- - your- - education- - and- - career- - choice;- - (2)- -
define- - your--financial- - goals;- - (3)- - develop- - a- - plan- - of- - action- - to- - achieve- - your- -
goals;- - (4)- - implement--spending- - and- - saving- - plans- - to- - monitor- - and- - control- -
progress- - toward- - your- - goals;- - and- - (5)--review- - your- - financial- - progress- - and- - make- -
changes- - as- - appropriate.
2. Distinguish- - among- - financial- - success,- - financial- - security,- - and- - financial- - happiness.
Answer:- - Financial- - success- - is- - the- - achievement- - of- - financial- - aspirations- - that- - are- -
desired,--planned,- - or- - attempted.- - Success- - is- - defined- - by- - the- - individual- - or- - family- -
that- - seeks- - it.
Financial- - success- - may- - be- - defined- - as- - being- - able- - to- - live- - according- - to- - one’s- -
standard- - ofy--living.- - Financial- - security- - is- - that- - comfortable- - feeling- - that- - your- -
financial- - resources- - will- - be--adequate- - to- - fulfill- - any- - needs- - you- - have- - as- - well- -
as- - your- - wants.- - Financial- - happiness- - is--the- - experience- - you- - have- - when- - you- -
are- - satisfied- - with- - money- - matters.- - People- - who- - are--happy- - about- - their- -
finances- - will- - see- - a- - spillover- - into- - positive- - feelings- - about- - life- - in--general.
3. Summarize- - what- - you- - will- - accomplish- - studying- - personal- - finance.
Answer:- - Several- - things- - can- - be- - accomplished- - by- - studying- - personal- - finance.- -
Recognize- - how--to- - manage- - unexpected- - and- - expected- - financial- - events.- - Pay- - as- -
little- - as- - possible- - in- - income--taxes.- - Understand- - how- - to- - effectively- - comparison- -
shop- - for- - vehicles- - and- - homes.- - Protect--what- - we- - own.- - Invest- - wisely.- - Accumulate- -
and- - protect- - the- - wealth- - that- - we- - may- - choose- - to- - spend- - during- - our- - non-working- -
years- - (e.g.,- - retirement)- - or- - donate.
4. What- - are- - the- - building- - blocks- - to- - achieving- - financial- - success?
Answer:- - The- - building- - blocks- - for- - achieving- - financial- - success- - include- - a- -
foundation- - ofy--regular- - income- - that- - provides- - the- - means- - to- - support- - your- -
lifestyle- - and- - save- - for- - desired--goals- - in- - the- - future.- - The- - foundation- - supports- - a- -
base- - of- - various- - banking- - accounts,--insurance- - protection,- - and- - employee- - benefits.- -
Then- - we- - can- - establish- - goals,- - a--recordkeeping- - system,- - a- - budget,- - and- - an- -
emergency- - savings- - fund.- - We- - will- - also- - manage--various- - expenses- - such- - as- - housing,-
- transportation,- - insurance,- - and- - the- - payment- - of- - taxes.--We- - will- - also- - need- - to- -
handle- - credit,- - savings,- - and- - educational- - costs.- - Finally,- - we- - invest- - in--various- -
investment- - alternatives- - such- - as- - mutual- - funds,- - stocks,- - and- - bonds,- - often- - for- -
retirement.- - As- - a- - result- - of- - all- - these- - building- - blocks,- - we- - are- - more- - apt- -
to- - have- - a--financially- - successful- - life.
LO1.2- - Understand- - how- - the- - economy- - affects- - your- - personal- - financial- - success.
1. Summarize- - the- - phases- - of- - the- - business- - cycle.
