Solutions for Personal Finance, 9th Canadian Edition Kapoor (All Chapters included)
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Course
FINC - Finance
Institution
FINC - Finance
Complete Solutions Manual for Personal Finance, 9th Canadian Edition by Jack R Kapoor, Les R. Dlabay, Robert J. Hughes, Lewis Stevenson, Ernest J. Kerst ; ISBN13: 9781264840397...(Full Chapters included Chapter 1 to 15)...Chapter 1 Personal Financial Planning: An Introduction
Chapter 2 Money Manag...
Personal Finance
9th Canadian Edition by Jack R Kapoor
Complete Chapter Solutions Manual
are included (Ch 1 to 15)
** Immediate Download
** Swift Response
** All Chapters included
,1
FINANCIAL PLANNING: AN INTRODUCTION
CHAPTER OVERVIEW
This chapter provides the foundation for Personal Finance and the study of financial planning. The
chapter starts with a discussion of an overview of the financial planning process. This is followed by
coverage of the person’s life situation, personal values, and economic factors that make up the financial
planning environment. Next, the opportunity costs, or trade-offs, of decisions are considered in relation
to personal and financial resources. Subsequently, the main components of financial planning (obtaining,
planning, saving, borrowing, spending, managing risk, investing, and retirement and estate planning) are
discussed. Finally, strategies for creating and using a financial plan are introduced.
LEARNING OBJECTIVES CHAPTER SUMMARY
After studying this chapter, students will be able to:
Obj. 1 Analyze the process for Personal financial planning involves the following process: (1)
making personal financial determine your current financial situation; (2) develop financial
decisions. goals; (3) identify alternative courses of action; (4) evaluate
alternatives; (5) create and implement a financial action plan; and
(6) re-evaluate and revise the financial plan.
Obj. 2 Develop personal Financial goals should (1) be realistic; (2) be stated in specific,
financial goals. measurable terms; (3) have a time frame; (4) indicate the type of
action to be taken.
Obj. 3 Assess personal and Financial decisions are affected by a person’s life situation
economic factors that (income, age, household size, health), personal values, and
influence personal economic factors (prices, interest rates, and employment
financial planning. opportunities).
Obj. 4 Determine personal and Financial opportunity costs are based on the time value of money.
financial opportunity costs Future value and present value calculations enable you to measure
associated with personal the increased value (or lost interest) that results from a saving,
financial decisions. investing, borrowing, or purchasing decision.
Obj. 5 Identify strategies for Successful financial planning requires specific goals combined
achieving personal with spending, savings, investing, and borrowing strategies based
financial goals for on your personal situation and various social and economic
different life situation. factors.
1-1
,INTRODUCTORY ACTIVITIES
Ask students to comment on the opening case for the chapter.
Point out the learning objectives in an effort to highlight the key points in the chapter.
Ask students to provide examples of social and economic factors that have increased the importance
of personal financial planning today.
Have students answer these three questions as individuals or in small discussion groups:
1. What do you currently know about personal financial planning?
2. What questions do you need answers for about personal finance?
3. How and where might you obtain answers to the questions you have about personal finance?
CHAPTER 1 OUTLINE
I. The Financial Planning Process
Step 1: Determine Your Current Financial Situation
Step 2: Develop Financial Goals
Step 3: Identify Alternative Courses of Action
Step 4: Evaluate Alternatives
Step 5: Create and Implement a Financial Action Plan
Step 6: Re-evaluate and Revise Your Plan
II. Developing Personal Financial Goals
A. Factors that Influence Your Financial Goals
B. Life Situation
C. Goal-Setting Guidelines
III. The Influence of Economic Factors
A. Market Forces
B. Financial Institutions
C. Global Influences
D. Economic Conditions
IV. Time Value of Money
A. Interest Calculations
B. Future Value
C. Present Value
V. Achieving Financial Goals
A. Components of Personal Financial Planning
B. Developing a Flexible Financial Plan
C. Implementing Your Financial Plan
VI. Appendix 1A: Financial Planners and Other Financial Planning Information Sources
1-2
, VII. Appendix 1B: The Time Value of Money: Future Value and Present Value Computations.
THE FINANCIAL PLANNING PROCESS
Personal financial planning is the process of Discussion Question: Why
do some decisions require more
managing your money to achieve personal economic time and effort than others?
satisfaction.
Step 1. Determine Your Current Financial Situation
Determine your current financial situation with
regard to income, savings, living expenses, and debts.
Step 2. Develop Financial Goals
Analyze your financial values and goals to set a
course for action.
Step 3. Identify Alternative Courses of Action Class Exercise: Select a
situation (such as obtaining
Various alternatives associated with financial funds to start a business or
decision making are usually based on deciding to: getting work-related experience
without a job) and have students
Continue the same course of action; for example, create a list of alternatives for
you may determine that the amount saved each this problem.
month is still appropriate.
Expand the current situation; you may choose to
save a greater amount each month.
Change the current situation; you may decide to
buy Canadian savings bonds instead of using a
regular savings account.
Take a new course of action; you conclude to use
your monthly saving budget to pay off credit card
debts.
Creativity in decision making is vital to making
effective choices. The more alternatives that are
considered, the more likely a person or household will
make wise financial choices.
Step 4. Evaluate Alternatives Text Highlight: Exhibit 1-
2 provides information on four
Every decision closes off alternatives. The types of risks faced in many
opportunity cost is what a person gives up by making financial decisions.
a choice. This cost, commonly referred to as the
trade-off of a decision, sometimes cannot always be
measured in dollars.
Text Reference: The
Decision making will be an ongoing part of your
Appendix provides expanded
personal and financial existence. Thus, you will need discussion of financial planning
to consider the lost opportunities that result from your information sources and using a
decisions. financial planner.
1-3
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