FIN 121 - Personal Finance

1. Outline the life-cycle approach to financial planning
   1. Describe why setting financial and non-financial goals are an important first step in financial planning
   2. Define marginal analysis and opportunity costs
   3. Define the importance of career planning to financial planning
   4. Define time value of money in the context of financial planning
2. Evaluate cash management strategy
   1. Compare the various services offered by commercial banks, savings and loan associations, and credit unions
   2. Differentiate the various types of savings investments and the characteristics associated with each type of savings account
   3. Illustrate the process of reconciling a bank statement
   4. Define compounding and the effects on your deposits over time
3. Assess the various types and sources of credit and characteristics associated with obtaining credit
   1. List reasons for and against using credit
   2. Define credit history and the necessary steps to establish a credit history
   3. Analyze a credit contract or installment loan contract
4. Explain the purpose of taxation
   1. Identify the individual components which determine the amount of income taxes
   2. Explain effective tax planning strategies to save or defer income taxes.
5. Relate financial statements to your individual financial goals
   1. Identify the components of a balance sheet
   2. Identify the components of an income statement
   3. Identify pertinent consumer financial ratios used to evaluate financial position and financial performance
6. Explain the role of the cash budget in financial planning
   1. Identify the major steps involved in the budgeting process
   2. Compare monthly income and expenses to budget amounts
   3. Review year end activities as part of next year’s budget
7. Identify how a consumer durable purchase would fit into budget planning
   1. Identify a consumer durable
   2. Outline the different trade-off between purchase price and cost of operations
8. Describe the characteristics of warranties and lemon laws
   1. Define between express and implied warranties
   2. State your rights under lemon laws
9. Examine the automobile purchase decision
   1. Outline the sources of information about various brands and models of cars
   2. Distinguish between the lease vs. buy decision when purchasing an automobile
10. Compare housing options
    1. Summarize the own vs. rent decision involved in housing
    2. List the steps taken when purchasing a home
11. Explain the importance of insurance in your life cycle
    1. Identify the various characteristics of life insurance
    2. Identify the various characteristics of health insurance
    3. Identify the various characteristics of property and casualty insurance
12. Assess investment tools
    1. Evaluate stock investment strategies
    2. Evaluate bond investment strategies
    3. Evaluate mutual fund investment strategies