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Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley
Edition 13ISBN: 978-1111971632Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley
Edition 13ISBN: 978-1111971632 Exercise 1
During the Christmas break of his final year at the University of Texas (UT), Tom Curtis plans to put together his résumé in order to seek full-time employment as a medical technician during the spring semester. To help Tom prepare for the job interview process, his older brother has arranged for him to meet with a friend, Teresa Erdman, who has worked as a medical technician since her graduation from UT two years earlier. Teresa gives him numerous pointers on résumé preparation, the interview process, and possible job opportunities.
After answering Tom's many questions, Teresa asks Tom to update her on UT. As they discuss courses, Teresa indicates that of all the electives she took, the personal financial planning course was most useful. Tom says that, although he had considered personal financial planning for his last elective, he's currently leaning toward a beginning golf course. He feels that the course will be fun because some of his friends are taking it. He points out that he doesn't expect to get rich and already knows how to balance his checkbook. Teresa tells him that personal financial planning involves much more than balancing a checkbook, and that the course is highly relevant regardless of income level. She strongly believes that the personal financial planning course will benefit Tom more than beginning golf-a course that she also took while at UT.
Critical Thinking Questions
1. Describe to Tom the goals and rewards of the personal financial planning process.
2. Explain to Tom what is meant by the term financial planning and why it is important regardless of income.
3. Describe the financial planning environment to Tom. Explain the role of the consumer and the impact of economic conditions on financial planning.
4. What arguments would you present to convince Tom that the personal financial planning course would benefit him more than beginning golf
After answering Tom's many questions, Teresa asks Tom to update her on UT. As they discuss courses, Teresa indicates that of all the electives she took, the personal financial planning course was most useful. Tom says that, although he had considered personal financial planning for his last elective, he's currently leaning toward a beginning golf course. He feels that the course will be fun because some of his friends are taking it. He points out that he doesn't expect to get rich and already knows how to balance his checkbook. Teresa tells him that personal financial planning involves much more than balancing a checkbook, and that the course is highly relevant regardless of income level. She strongly believes that the personal financial planning course will benefit Tom more than beginning golf-a course that she also took while at UT.
Critical Thinking Questions
1. Describe to Tom the goals and rewards of the personal financial planning process.
2. Explain to Tom what is meant by the term financial planning and why it is important regardless of income.
3. Describe the financial planning environment to Tom. Explain the role of the consumer and the impact of economic conditions on financial planning.
4. What arguments would you present to convince Tom that the personal financial planning course would benefit him more than beginning golf
Explanation
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Person TC is in his last semester of college, and decides to create his resume in order to seek-full time employment. He seeks out a friend, Person TE, to help with the process. While they are working, Person TE indicates that she found a personal financial planning course to be extremely helpful. Person TC appreciates her advice but is leaning towards taking a golfing course next semester instead. Person TE strongly feels that Person TC will benefit greatly from taking a financial planning course instead of a golfing course.
1.
The process of financial planning is the best away to achieve personal financial goals, and brings many rewards along the way. They include:
• Improving your standard of living
• Spending money wisely
• Accumulating wealth
2.
The term financial planning is defined as a systematic process aimed at meeting financial goals through the consideration of important financial elements. Everyone - no matter what their circumstances in life - should develop a personal financial plan. It is meant for every person, of every income. This is because personal financial planning helps a person to not only spend and invest their money wisely, but it also improves their lifestyle.
3.
The dynamic economic environment of financial planning is affected by the roles of the government, business, and consumers. A strong economy can lead to strong returns on investment while a weak economy can lead to inflation which makes it hard to make ends meet.
The role of the consumer in the financial planning environment is important - they are at the center. The demands of consumers have an ultimate effect on the goods and services provided by businesses. In addition, the decision of consumers to spend or save their money has a direct impact on the health of the economic environment.
Individual consumers should also be aware of the limitations in their ability to significantly change the current economic environment on their own. Instead, consumers should plan their financial transactions within the current environment.
4.
While Person TC is leaning towards taking a golfing course, there are strong arguments in favor of taking a financial planning course instead. Having a strong knowledge of financial planning is important for all individuals , as explained above. The course will prepare Person TC well for life after college, and enable to him to develop his own personal financial goals and the actions needs to achieve them.
1.
The process of financial planning is the best away to achieve personal financial goals, and brings many rewards along the way. They include:
• Improving your standard of living
• Spending money wisely
• Accumulating wealth
2.
The term financial planning is defined as a systematic process aimed at meeting financial goals through the consideration of important financial elements. Everyone - no matter what their circumstances in life - should develop a personal financial plan. It is meant for every person, of every income. This is because personal financial planning helps a person to not only spend and invest their money wisely, but it also improves their lifestyle.
3.
The dynamic economic environment of financial planning is affected by the roles of the government, business, and consumers. A strong economy can lead to strong returns on investment while a weak economy can lead to inflation which makes it hard to make ends meet.
The role of the consumer in the financial planning environment is important - they are at the center. The demands of consumers have an ultimate effect on the goods and services provided by businesses. In addition, the decision of consumers to spend or save their money has a direct impact on the health of the economic environment.
Individual consumers should also be aware of the limitations in their ability to significantly change the current economic environment on their own. Instead, consumers should plan their financial transactions within the current environment.
4.
While Person TC is leaning towards taking a golfing course, there are strong arguments in favor of taking a financial planning course instead. Having a strong knowledge of financial planning is important for all individuals , as explained above. The course will prepare Person TC well for life after college, and enable to him to develop his own personal financial goals and the actions needs to achieve them.
Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley
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