Download Introduction to Financial Planning

Financial
Planning
Management
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MONEY MATTERS
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Financial
Knowledge &
Understanding
• Nature of money and insight into
its functions and uses
Financial Skills
&
Competencies
• Apply knowledge and
understanding of financial
matters across contexts
Financial
Responsibility
• Understand how decisions can
impact individuals, family, and
community
MONEY MATTERS
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FINANCIAL CAPABILITY
Managing
Money
Planning
Ahead
Choosing
Products
MONEY MATTERS
Staying
Informed
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FINANCIAL CAPABILITY
Managing Money
Planning Ahead
Choosing Products
Shop around to get
the best value
financial products
Staying Informed
Be making ends meet
Have some provisions
to cover a loss of
income
Keep abreast of things
likely to impact their
finances
Keep track of their
finances
Be able to meet a
major expense
without borrowing
Take steps to ensure
they get the products
that were most
suitable for them
Know key features of
the products they
hold
Plan for predictable
future expenses
Have made provisions
for anticipated major
expenses
Make sure they know
what is in the “small
print”
Be able and willing to
deal with problems or
complaints should
they arise
Be making adequate
provisions for their
retirement
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Financial Capability
Managing
Money
People who are
financially capable
will:
Be making ends meet
Keep track of their
finances
Plan for predictable
future expenses
Planning Ahead
People who are
financially capable
will:
Have some provisions
to cover a loss of
income
Be able to meet a
major expense
without
borrowing
Have made provisions
for anticipated major
expenses
Be making adequate
provisions for their
retirement
Choosing
Products
Staying
Informed
People who are
financially capable
will:
People who are
financially capable
will:
Shop around to get
the best value
financial products
Keep abreast of
things likely to impact
their finances
Take steps to ensure
they get the products
that were most
suitable for them
Know key features of
the products they hold
Make sure they know
what is in the “small
print”
MONEY MATTERS
Be able and willing to
deal with problems or
complaints should
they arise
Source: Adapted from Atkinson et al.
(2007)
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ECONOMY
What are some ways the
economy can affect your
personal financial
success?
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• Housing fall
• Unemployment
trends
• Stock market
changes
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Government
• Great
Depression
• Pearl
Harbor
• 9/11
More Recent
Historically
Events can affect personal financial
success
• Taxes
• Retirement
funding
• Interest
rates
• Inflation
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The economy can affect your personal
financial success…
The Government can change
how much you need in
terms of retirement
The Government can change
how much taxes they will
levy
Interest rates can rise which
affects payments
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Review/Summary
What do you know about financial
planning and management?
What do you think you know about
financial planning and
management?
What don’t you know yet about
financial planning and
management?
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KEY TERMS
Economy
Financial
• System on managing the resources of a country,
state, or community
• The ability to understand finances
capability
Financial
planning
Financial
responsibility
• A process of setting goals, developing a plan to
achieve them, and putting the plan into action
• Being accountable for your future financial well
being
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