Tag: Personal Financial Management

Personal Financial Management

Posted on | by Brian Leakey

With personal financial planning we learn to acquire, use, and control our financial resources more efficiently. You are asked to prepare a ‘roadmap’ to outline your financial plans for the future. By creating this ‘roadmap’, you will be able to monitor and control your finances better to achieve your goals. The purpose of this assignment is to help you take a closer look at your own personal financial situation and to make necessary decisions to achieve your financial goals. This assignment is based on YOUR own financial situation; therefore, each project is unique and different.

  1. My Current Financial Situation (provide detailed information about your financial situation in terms of your sources of income, expenses, debt to create a clear picture of where you are financially)
  2. Banking (visit your local bank branch and find out more about savings accounts, checking accounts and certificates of deposit (CDs). What are the requirements for opening each account, interest rate, fees and other charges? Which of these accounts do you need and why?
  3. Credit (how many credit cards do you have? If you don’t have any, explain the benefits and drawbacks of having credit cards. What are the major credit reporting agencies in the U.S.? What is a FICO score? Explain how your credit may impact your financial future and what the best way to use credit cards is.
  4. Insurance (explain the different types of insurance coverage you need including health, life, auto, homeowners, etc. With each type of insurance coverage explain how to select the appropriate amount of insurance and the benefits/costs of such coverage)
  5. Buying a Car (explain the different car ownership options—cash payment, financing, leasing and list the advantages and disadvantages of each. Which option is most appropriate for your situation and why? What are some of the steps you need to take before making the decision to buy a car? What are the expenses associated with car ownership—Specify total yearly expenses)
  6. Buying a House (research your local real estate market and specify the different types of house ownership options available. Are there any government programs available for first time home buyers? What are the requirements to take advantage of these government programs? What are the steps necessary to take to help you make a decision about buying a house? How much down payment do you need to make? What is a mortgage and what are the different types available? When do you plan to buy a house and how do you intend to finance it?)
  7. Investing (discuss the difference between saving and investing. Give three different options to invest. Explain the difference between investing in stocks, bonds, mutual funds, IRAs, and 401 Ks. How do you plan to invest for your retirement? When should you start planning for retirement?)
  8. My Financial Plan (this is your opportunity to indicate your detailed financial plan for the future. List your financial goals for the future, in terms of the next five years, ten years, and thirty years. What are the steps you plan to take to achieve these goals? Based on what you’ve learned so far, how do you assess your financial situation? What would you do differently and why?)

Personal Financial Management

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-Your attitude towards money.
Discussion Topic:

1. One of the first steps to becoming financially responsible is to understand your current behavior. The attached file named “Attitudes towards money” and the money attitudes survey ( link to which is https://mccurdyfinancial.com/your-money-attitude/) provide descriptions of various profiles. Review each profile, identify which one best describes you, and discuss why you think it does. What are the weaknesses or strengths of this type of attitude? Which of the attitudes would you aspire to model and why?

2. After reading Chapter 1 and watching the videos- “How to Avoid Unnecessary Expenses” and “You’re Spending Too Much” and evaluating your current style of managing your finances:

Review your expenses and identify three flexible expenses that you could reduce or eliminate altogether. Discuss how you can reduce or eliminate these expenses.
How much do you normally spend on eating outside during the workweek? Using your daily expenditure on eating out, calculate how much you normally spend during a year and over the course of 10 years. What do you think of your findings?
3. List one financial goal you want to accomplish in ten years. How do you plan on accomplishing it?

4. Do you use coupons? How do you assess the use of coupons in reaching your financial goals? Do they really make a difference?

Watch the videos-