Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. End of

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3 Personal Financial Planning Why is it important to learn now how to plan for your financial future?

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Personal Financial Decisions Personal Financial Planning personal financial planning Your Goals Section 1Financial Decisions and Goals Personal Financial Planning goals Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Developing Personal Financial Goals Section 1Financial Decisions and Goals Personal Financial Planning Short-Term Goals Intermediate Goals Long-Term Goals Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Developing Personal Financial Goals Section 1Financial Decisions and Goals Personal Financial Planning Tips for Setting Your Financial Goals Be _______________ Have a clear time frame Know what type of action to take Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Personal Financial Decisions Section 1Financial Decisions and Goals Personal Financial Planning Benefits of Planning Increased effectiveness in managing financial resources Debt avoidance and reduced dependence on others A sense of freedom from financial worries Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Personal Financial Decisions Section 1Financial Decisions and Goals Personal Financial Planning Determine Your Current Financial Situation Savings Debts Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Personal Financial Decisions Section 1Financial Decisions and Goals Personal Financial Planning Develop Your Financial Goals Think about your financial goals Do your personal values affect your financial decisions? What are your needs? What are your wants? values Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Personal Financial Decisions Section 1Financial Decisions and Goals Personal Financial Planning Identify Alternative Courses of Action Continue the same course of action Expand the current situation Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Developing Personal Financial Goals Section 1Financial Decisions and Goals Personal Financial Planning a task that a person or machine performs for you physical item that is produced and can be weighed or measured Chapter 3

Glencoe Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Influences on Personal Financial Planning Section 1Financial Decisions and Goals Personal Financial Planning Consumer Prices Consumer Spending Interest Rates Economic Conditions consumer Interest Chapter 3