Introduction to Personal Finance

What is Personal Finance?

• The financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events

• A plan that shows you how you can spend your money every month

• Putting your money into assets such as stocks or bonds

• Company engaged in the business of dealing with financial and monetary transactions

How many steps did we discuss for understanding how to manage your finances?

• 3

• 5

• 6

• 7

The importance of Personal Finance is

• Having a lot of money

• Planning for your future

• Meeting your financial goals

• Both meeting your financial goals and planning for your future

Which of the following are ways you can plan for and meet your financial goals?

• SMART Goals

• Budgeting

• Cost-Benefit Analysis

• All of the above

What is budgeting?

• A plan that shows you how you can spend your money every month

• The process used to measure the benefits of a decision or taking action minus the costs associated with taking that action

• The financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events

• The time where you decide to permanently leave your job

What is the impact of knowing how to make informed decisions when it comes to your financials? What does it equip you with?

What would be an example of Goal Setting when it comes to your budget?

• Paying off debt

• Estimating your income and expenses over a period of time

• Saving up for a down payment

• Paying off a debt and saving up for a down payment

What was it like coming up with your own budget? Was it harder than you expected? Do you think $2,100 a month is a lot of money?