midterm study guid

  1. List the five steps in the
    personal financial planning process.
    • 1)Analyze Your Current Financial Position 2)Develop Short-Term and Long-Term Financial Goals
    • 3)Identify and Evaluate Alternative Strategies for Achieving Your Goals 4)Implement a Plan for Achieving Your Goals 5)Regularly Re-evaluate and Revise Your Plan
  2. Summarize what influences
    personal financial planning
    • Changing Needs Over the Life Cycle, Values
    • and Attitudes, Life Situation, General Economic Conditions
  3. Identify parts of a financial plan
    o    Making Reasonable Assumptions

    o    Applying Marginal Reasoning

    o    Considering Opportunity Costs

          Using Sensitivity Analysis
  4. Describe how to organize
    and prepare personal financial statements
    • 1) Collecting and Organizing Your
    • Financial Information

    o    Why You Need to Save Bills and Documents

    o    How Long You Should Save Documents

    • o    Where You Should Keep
    • Documents

    2) Using Personal Financial Statements

    • o    Preparing a Personal
    • Balance Sheet

    • o    Valuing Your Assets
    • and Debts

    Calculating Your Net Worth
  5. Identify cash management products
    and services.
    o    Checking Accounts

    o    Savings Accounts

    o    Savings Alternatives

    • o    Other Cash Management
    • Products and Services

    Evaluating Your Options
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midterm study guid
midterm study guide