1. Planning Personal Finances

2. Personal Financial Planning SPENDING SAVING INVESTING So you can have the kind of life you want as well as financial security

3. Influences on Personal Financial Planning Economics The study of the decisions that go into making, distributing, and using goods and services.

4. Economic Factors Market Forces –Supply –Demand Financial Institutions –Federal Reserve System Global Influence Economic Conditions –Consumer Prices Inflation –Consumer Spending Employment –Interest Rates Interest

5. Financial Strategies Opportunity Costs Personal Financial Calculating Interest Principal Future Value Present Value

6. Strategy 1: Beverly Age Annual Contribution Year-end Value 181,000 191,000 201,000 211,000 221,000 231,000 241,000 Age Annual Contribution Year-end Value 640 650 Summary Data Principal Invested $7,000 Future Value $519,552.58 Investment Return $512,552.58

7. Strategy 2: Matt Age Annual Contribution Year-end Value 250 260 270 281,000 291,000 301,000 311,000 Age Annual Contribution Year-end Value 641,000 651,000 Summary Data Principal Invested $38,000 Future Value $400,447.78 Investment Return $362,447.78

8. Who is the wiser investor Beverly or Matt? WHY?