ebook download (eBook PDF) Personal Finance 3rd Canadian Edition all chapter

(eBook PDF) Personal Finance 3rd
Canadian Edition
Go to download the full and correct content document:
https://ebooksecure.com/product/ebook-pdf-personal-finance-3rd-canadian-edition/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
(Original PDF) Personal Finance, 4th Canadian Edition
http://ebooksecure.com/product/original-pdf-personal-finance-4th-
canadian-edition/
(eBook PDF) Personal Finance 6th Canadian Edition by

Jack R. Kapoor
http://ebooksecure.com/product/ebook-pdf-personal-finance-6th-
canadian-edition-by-jack-r-kapoor/
(eBook PDF) Personal Finance 7th Canadian Edition by

Jack R. Kapoor
canadian-edition-by-jack-r-kapoor/
Personal Finance 13th Edition (eBook PDF)
http://ebooksecure.com/product/personal-finance-13th-edition-
ebook-pdf/
Personal Finance 5th Edition (eBook PDF)
http://ebooksecure.com/product/personal-finance-5th-edition-
ebook-pdf/
(eBook PDF) Corporate Finance, 3rd Canadian Edition
http://ebooksecure.com/product/ebook-pdf-corporate-finance-3rd-
canadian-edition/
(eBook PDF) Personal Finance 2nd ed. 2011 Edition
http://ebooksecure.com/product/ebook-pdf-personal-finance-2nd-
ed-2011-edition/
Personal Finance 14th Edition Jack Kapoor - eBook PDF
https://ebooksecure.com/download/personal-finance-ebook-pdf-2/
(eBook PDF) Personal Finance 6th Edition by Jeff Madura
edition-by-jeff-madura/
Contents vii
Factors That Affect Cash Flows .................... 58 Step 2: Subtract Deductions........................ 89

Factors Affecting Income................................................ 58 Deductions ..................................................................... 90
Factors Affecting Expenses ............................................ 59 Net Income ..................................................................... 90
Creating a Budget ......................................... 59 Step 3: Calculate Taxable Income ................ 91

Anticipating Cash Shortages .......................................... 61
Step 4: Calculate Net Federal
Assessing the Accuracy of the Budget........................... 61
Tax Payable .................................................... 91
Forecasting Net Cash Flows over Several Months ......... 62
Budgeting with a Biweekly Pay Period ........................... 63 Tax Credits ..................................................... 92
Creating an Annual Budget ............................................. 64 Transferable Tax Credits .................................................. 94
Improving the Budget ..................................................... 65 Tax Credits Eligible for Carry Forward............................. 95
Alternative Budgeting Strategies .................................... 65
Step 5: Calculate Net Provincial
Personal Balance Sheet ............................... 67 Tax Payable .................................................... 95
Assets............................................................................. 67
Step 6: Calculate Total Tax Payable .............. 98
Liabilities ......................................................................... 68
Net Worth ....................................................................... 69 Step 7: Determine Total Tax Already Paid .... 98
Creating a Personal Balance Sheet ................................. 69
Step 8: Refund or Balance Owing ............... 98
Changes in the Personal Balance Sheet ......................... 69
How Cash Flows Affect the Personal Balance Sheet ..... 71 Tax Planning Strategies ............................... 99
Types of Income ............................................................. 99
Financial Ratio Calculations ........................ 72
Sources of Income ........................................................ 101
Liquidity .......................................................................... 72
RRSP Contributions .......................................................102
Debt Level ...................................................................... 73
Deductions and Tax Credits ...........................................102
Savings Ratio .................................................................. 73
Record Keeping .............................................................103
Summary ....................................................... 75
Summary ...................................................... 103
Review Questions .......................................................... 75
Review Questions .........................................................104
Financial Planning Problems ............................................76
Financial Planning Problems ..........................................105
Challenge Questions ...................................................... 77
Challenge Questions .....................................................106
Ethical Dilemma.............................................................. 77
Ethical Dilemma.............................................................106
Financial Planning Online Exercises ............................... 78
Financial Planning Online Exercises ..............................106
Psychology of Personal Finance: Your Cash Outflows .... 78
Psychology of Personal Finance: Your Taxes ..................107
Mini-Case 1: Personal Financial Statement Analysis ...... 78
Mini-Case: Tax Deductions and Tax Credits....................107
Study Guide .................................................................... 79
Study Guide ...................................................................108
Chapter 4 Appendix 4A Comprehensive

Tax Example ................................................. 110
Using Tax Concepts for
Planning..........................................81 Part 1: Brad MacDonald—A
Continuing Case ..........................................123
Background on Taxes .................................... 82 Case Questions ............................................................ 124
Taxes Paid on Earned Income ......................................... 82
Taxes Paid on Consumer Purchases ............................... 83
Taxes Paid on Capital Assets .......................................... 83 PART 2
Taxes Paid on Property ................................................... 84 MANAGING YOUR FINANCIAL
Do You Have To File a Return? ...................... 84 RESOURCES
Why Students Should File Tax Returns ........................... 85
Filing Your Return ............................................................ 85
Chapter 5
Overview: Completing an Income Banking Services and
Tax Return ..................................................... 86 Managing Your Money................. 128
Step 1: Calculate Total Income ..................... 88 Background on Money Management ........129
Wages and Salaries ........................................................ 88 Liquidity ........................................................................ 129
Self-Employment Income ............................................... 88
Interest Income .............................................................. 88 Types of Financial Institutions ....................130
Dividend Income............................................................. 89 Depository Institutions ................................................. 130
Capital Gains and Losses................................................ 89 Non-Depository Institutions .......................................... 132
viii Contents
Banking Services Offered by Types of Credit Cards ................................................... 157

Financial Institutions ...................................134 Credit Limit ................................................................... 158
Chequing Services........................................................ 135 Overdraft Protection ..................................................... 158
Debit Cards ................................................................... 135 Annual Fee .................................................................... 159
Online Banking ............................................................. 136 Incentives to Use the Card ........................................... 159
Credit Card Financing ................................................... 136 Grace Period ................................................................. 159
Safety Deposit Boxes ................................................... 136 Cash Advances/Convenience Cheques ........................ 159
Automated Banking Machines (ABMs) ......................... 136 Financing ...................................................................... 160
Certified Cheques ......................................................... 137 Minimum Monthly Payments ....................................... 161
Money Orders and Drafts ............................................. 137 Credit Card Statement .................................................. 162
Traveller’s Cheques ....................................................... 137 Comparing Credit Cards ............................................... 163
Selecting a Financial Institution.................138 Personal Loans .............................................164

Convenience ................................................................. 138 Loan Contract ............................................................... 165
Deposit Rates and Insurance........................................ 138 The Real Cost of Borrowing on Personal Loans............ 168
Fees .............................................................................. 138
Home Equity Loan .......................................169
Savings Alternatives Offered Credit Limit on a Home Equity Loan..............................170
by Financial Institutions ..............................139 Interest Rate ..................................................................170
Tax-Free Savings Account (TFSA) .................................. 139
Savings Deposits .......................................................... 139 Car Loans......................................................171
Term Deposits .............................................................. 139 Selecting the Car ...........................................................171
Guaranteed Investment Certificates ............................. 139 Negotiating the Price .....................................................172
Canada Savings Bonds (CSBs)...................................... 141 Financing Decisions .......................................................173
Money Market Funds (MMFs) ...................................... 141 Purchase versus Lease Decision ................................... 174
Determining the Optimal Allocation
of Short-Term Investments ........................................... 142
Student Loans..............................................175
Summary ......................................................143 Debt Management....................................... 176

Review Questions ........................................................ 143 Review Your Personal Financial Statements .................. 176
Financial Planning Problems ......................................... 144 Consumer Proposal .......................................................177
Challenge Questions .................................................... 145 Bankruptcy .....................................................................178
Ethical Dilemma............................................................ 145 Avoid Credit Repair Services .........................................178
Financial Planning Online Exercises ............................. 146
Identity Theft: A Threat to Your Credit ........178
Psychology of Personal Finance: Paying Your Bills ........ 147
The Scope of Identity Theft............................................178
Mini-Case 1: Money Management ............................... 147
The Cost of Identity Theft ..............................................179
Mini-Case 2: Savings Alternatives ................................ 147
Study Guide .................................................................. 148 Identity Theft Tactics ....................................179
Shoulder Surfing ............................................................179
Dumpster Diving............................................................179
Chapter 6 Skimming...................................................................... 180
Assessing, Managing, Pretexting, Phishing, and Pharming.............................. 180
and Securing Your Credit ............. 150 Abusing Legitimate Access to Records ........................ 180
Background on Credit..................................151 Crime Rings .................................................................. 180
Types of Credit.............................................................. 151 Violating Your Mailbox ................................................... 180
Advantages of Using Credit .......................................... 151 Protecting Against Identity Theft................181
Disadvantages of Using Credit ..................................... 152
Credit History ............................................................... 152 Response to Identity Theft ..........................182
The Credit Application Process ..................................... 153
Summary ......................................................183
Credit Insurance ........................................................... 153
Review Questions ........................................................ 185
Credit Bureaus .............................................154 Financial Planning Problems ......................................... 187
Credit Score .................................................................. 154 Challenge Questions .................................................... 188
Reviewing Your Credit Report ....................................... 156 Ethical Dilemma............................................................ 188
Consumer Credit Products..........................157 Psychology of Personal Finance: Your Credit
Credit Cards..................................................157 Cards and Car Loans..................................................... 189
Contents ix
Mini-Case 1: Credit Card Use ....................................... 190

Mini-Case 2: Car Ownership......................................... 190
PART 3
Study Guide .................................................................. 190 PROTECTING YOUR WEALTH
Chapter 8
Chapter 7 Auto and Homeowner’s
Purchasing and Financing Insurance ...................................... 226
a Home ......................................... 193
Background on Insurance .......................... 227
Selecting a Home ........................................ 194
How Much Can You Afford? .......................................... 194 Managing Risk ............................................ 227
Affordable Down Payment ............................................ 196 Avoid Risk ..................................................................... 227
Affordable Monthly Mortgage Payments...................... 196 Reduce Risk.................................................................. 227
Criteria Used to Select a Home .................................... 197 Accept Risk................................................................... 228
Relying on a Realtor ...................................................... 198 Share Risk..................................................................... 228
Using Online Realtor Services ...................................... 198
Role of Insurance Companies .................... 229
Negotiating a Price ....................................................... 199
Insurance Company Operations ................................... 229
Transaction Costs of Purchasing Insurance Company Credit Ratings and Service........... 230
a Home ......................................................... 199 Role of Insurance Agents and Brokers ......................... 230
Down Payment ............................................................. 200
Auto Insurance ............................................ 231
Closing Costs................................................................ 202
Auto Insurance Policy Provisions .................................. 232
Mortgage Options ...................................... 205 Section A: Third Party Liability Coverage ...................... 232
Amortization Period ...................................................... 205 Section B: Accident Benefits ........................................ 233
Mortgage Term ............................................................. 205 Section C: Loss of or Damage to Insured Automobile ..... 234
Payment Frequency ...................................................... 205 Facility Association ....................................................... 234
Mortgage Type .............................................................. 206 No-Fault Auto Insurance ............................................... 235
Other Provisions ........................................................... 235
Characteristics of a Fixed-Rate Summary of Auto Insurance Provisions........................ 236
Mortgage ..................................................... 207
Amortization Schedule .................................................. 208 Factors That Affect Your Auto
Impact of the Mortgage Amount, Interest Rate, Insurance Premiums ................................... 236
and Amortization Period on Monthly Payments ............ 208 Comparing Premiums among Insurance Companies ..... 237
Characteristics of a Variable-Rate If You Are In an Auto Accident .................... 238

Mortgage ...................................................... 210 Homeowner’s Insurance ............................ 240
Initial Rate ......................................................................210
Types of Perils Covered by Homeowner’s Insurance ....... 240
Interest Rate Index ........................................................210
Homeowner’s Insurance Policy
Decision to Own versus Rent a Home ....... 211 Provisions .................................................... 240
Estimating the Total Cost of Renting
Building (Property Damage) .......................................... 240
and Owning ................................................................... 211
Other Structures on Property ....................................... 241
Mortgage Refinancing .................................213 Contents (Personal Property) ........................................ 241
Rate Modification ......................................................... 213 Policy Limits and Exclusions ......................................... 241
Refinancing Analysis ..................................................... 213 Liability ......................................................................... 242
Other Types of Expenses .............................................. 242
Summary ......................................................214 Expenses Incurred by Homeowner’s
Insurance Companies ................................................... 242
Financial Planning Problems ......................................... 215
Challenge Questions .................................................... 216 Homeowner’s Insurance Premiums .......... 243
Ethical Dilemma.............................................................217 Factors That Affect Homeowner’s Insurance
Financial Planning Online Exercises ..............................217 Premiums ..................................................................... 243
Psychology of Personal Finance: Reducing Your Homeowner’s Insurance Premium........ 244
Your Cash Outflows ....................................................... 218
Filing a Claim .............................................. 244
Mini-Case 1: Home Ownership .................................... 218
Mini-Case 2: Mortgage Planning .................................. 219 Tenant’s Insurance ...................................... 244
Study Guide .................................................................. 221 Tenant’s Insurance Policy Provisions ............................ 245
x Contents
Umbrella Personal Liability Policy............. 245 Challenge Questions .....................................................276

Summary ..................................................... 245 Ethical Dilemma.............................................................276
Review Questions ........................................................ 245 Financial Planning Online Exercises ............................. 277
Ethical Dilemma............................................................ 246 Psychology of Personal Finance: Your Life
Financial Planning Online Exercises ............................. 246 Insurance ...................................................................... 278
Psychology of Personal Finance: Your Auto Insurance .... 247 Mini-Case 1: Group Insurance ...................................... 278
Mini-Case 1: Auto Insurance......................................... 247 Mini-Case 2: Life Insurance .......................................... 278
Mini-Case 2: Homeowner’s Insurance ......................... 247 Study Guide .................................................................. 279
Study Guide .................................................................. 248
Chapter 9 PART 4
Health and Life Insurance ........... 250 PERSONAL INVESTING
Background on Health and Life
Insurance ..................................................... 251 Chapter 10
Canada’s Health Care System ................... 252 Investing Fundamentals.............. 284
Role of the Federal Government................................... 252
Types of Investments ................................. 285
Role of the Provincial and Territorial Governments ....... 253
Money Market Securities ............................................. 285
Role of Private Health Insurance .................................. 253
Stocks ........................................................................... 285
Disability Insurance .................................... 255 Bonds ........................................................................... 288
Disability Insurance Provisions ..................................... 257 Mutual Funds ................................................................ 288
Real Estate ................................................................... 288
Critical Illness Insurance ............................ 258
Investment Return and Risk ...................... 289
Long-term Care Insurance.......................... 259 Measuring the Return on Your Investment ................... 289
Long-term Care Insurance Provisions ........................... 259
How Wealth Is Influenced by Your Return
Other Factors That Affect Long-term
on Investment .............................................................. 290
Care Insurance Premiums ............................................ 260
Risk of Investing ........................................................... 291
Reducing Your Cost for Long-term Care Insurance ....... 260
Determining the Amount of Coverage.......................... 260 Trade-off between Return and Risk ........... 293
Return–Risk Trade-off among Stocks ............................ 293
Life Insurance .............................................. 261 Return–Risk Trade-off among Bonds ............................. 294
Term Insurance ............................................................. 261
Return–Risk Trade-off among Mutual Funds ................. 294
Permanent Insurance.................................................... 264
Return–Risk Trade-off among Real
Determining the Amount of Estate Investments ........................................................ 295
Life Insurance Needed ................................ 268 Comparing Different Types of Investments .................. 295
Income Method ............................................................ 268
How Diversification Reduces Risk............. 296
Budget Method ............................................................ 269
Benefits of Portfolio Diversification .............................. 296
Contents of a Life Insurance Policy ........... 271 Determining Portfolio Benefits ..................................... 297
Beneficiary .................................................................... 271 Factors That Influence Diversification Benefits ............. 298
Grace Period ................................................................. 271
Strategies for Diversifying ......................... 299
Reinstatement .............................................................. 271
Diversification of Stocks across Industries ................... 299
Living Benefits .............................................................. 271
Diversification of Stocks across Countries ................... 300
Premium Schedule ....................................................... 271
Loans ............................................................................ 271 Asset Allocation Strategies ........................ 301
Suicide Clause .............................................................. 272 Including Bonds in Your Portfolio....................................301
Incontestability Date..................................................... 272 Including Income Trust Investments
Misstatement of Age or Sex......................................... 272 in Your Portfolio .............................................................. 302
Renewability and Conversion Options .......................... 272 How Asset Allocation Affects Risk ............................... 302
Riders ........................................................................... 272 An Affordable Way to Conduct Asset Allocation ........... 302
Summary ...................................................... 274 Factors That Affect Your Asset
Review Questions ......................................................... 274 Allocation Decision..................................... 303
Financial Planning Problems ......................................... 275 Your Stage in Life .......................................................... 303
Contents xi
Your Degree of Risk Tolerance ...................................... 304 Financial Planning Online Exercises ............................. 335
Your Expectations about Psychology of Personal Finance:
Economic Conditions .................................................... 305 Your Investments .......................................................... 336
Mini-Case 1: Financial Ratio Calculations
Learning from Investment Mistakes ......... 305
and Analysis .................................................................. 337
Making Decisions Based on Unrealistic Goals ............. 305
Mini-Case 2: Using Stock Quotes ................................. 338
Borrowing to Invest ...................................................... 306
Study Guide .................................................................. 338
Taking Risks to Recover Losses from Previous
Investments .................................................................. 306 Appendix 11A Including Stock
Summary ..................................................... 307 Options in Your Portfolio ............................ 340
Challenge Questions .....................................................310
Chapter 12
Ethical Dilemma.............................................................310 Investing in Bonds ....................... 344
Financial Planning Online Exercises ..............................310 Background on Bonds ................................ 345
Psychology of Personal Finance: Bond Characteristics..................................................... 346
Your Investments ........................................................... 311 Yield to Maturity ........................................................... 347
Mini-Case 1: Investment Planning ................................. 311 Bond Trading in the Secondary Market ......................... 348
Mini-Case 2: Diversification .......................................... 312 Term Structure of Interest Rates .................................. 348
Study Guide .................................................................. 312
Types of Bonds ............................................ 349
Government of Canada Bonds...................................... 349
Chapter 11 Federal Crown Corporation Bonds ................................ 349
Provincial Bonds ........................................................... 350
Investing in Stocks ...................... 314 Municipal Bonds ........................................................... 350
Stock Exchanges ..........................................315 Corporate Bonds........................................................... 350
Other Stock Exchanges ................................................ 315
Over-the-Counter (OTC) Market .................................... 316
Other Fixed-Income Products .................... 351
Short-Term Debt Securities .......................................... 351
Stock Quotations .........................................316 Canada Savings Bonds (CSBs)...................................... 352
Mortgage-Backed Securities (MBSs) ............................ 352
Purchasing or Selling Stocks ......................317
Strip Bonds ................................................................... 352
Selecting a Broker .........................................................317
Real Return Bonds ........................................................ 353
Placing an Order ........................................................... 318
Placing an Order Online ................................................ 320 Return from Investing in Bonds ................ 353
Buying Stock on Margin................................................ 320 Impact of Interest Rate Movements on
Bond Returns ................................................................ 353
Analysis of a Firm ....................................... 321
Tax Implications of Investing in Bonds.......................... 354
Annual Report ............................................................... 321
Firm-Specific Characteristics ........................................ 322 Valuing a Bond ............................................ 354
Economic Analysis of Stocks ........................................ 325
Industry Analysis of Stocks........................................... 327
Risk from Investing in Bonds..................... 355
Default Risk .................................................................. 356
Industry Indicators ........................................................ 327
Call Risk ........................................................................ 357
Integrating Your Analyses.............................................. 327
Inflation Risk ................................................................. 357
Stock Valuation ........................................... 328 Reinvestment Risk........................................................ 357
Dividend Discount Model (DDM) Method .................... 329 Interest Rate Risk ......................................................... 357
Price–Earnings (P/E) Method ........................................ 330
Stock Market Efficiency ................................................ 330
Bond Investment Strategies ...................... 358
Interest Rate Strategy .................................................. 358
Assessing Performance of Stock Passive Strategy ........................................................... 359
Investments ................................................ 331 Maturity Matching Strategy .......................................... 359
Comparing Returns to an Index .................................... 331 Summary ..................................................... 359
Summary ..................................................... 332 Review Questions ........................................................ 360
Review Questions ........................................................ 333 Financial Planning Problems ......................................... 361
Financial Planning Problems ......................................... 334 Challenge Questions .................................................... 362
Challenge Questions .................................................... 335 Ethical Dilemma............................................................ 362
Ethical Dilemma............................................................ 335 Financial Planning Online Exercises ............................. 362
xii Contents
Psychology of Personal Finance:

Buying Risky Bonds ...................................................... 363
PART 5
Mini-Case 1: Bond Ratings and Calculations ................ 363 RETIREMENT AND ESTATE
Mini-Case 2: Purchasing Bonds .................................... 364 PLANNING
Study Guide .................................................................. 364
Chapter 14
Chapter 13 Retirement Planning ................... 392
Investing in Mutual Funds .......... 366 Old Age Security ......................................... 393
Background on Pooled Investment Old Age Security (OAS) Program .................................. 393
Funds ........................................................... 367 Canada Pension Plan .................................. 395
Background on Mutual Funds ................... 367 Canada Pension Plan (CPP) Program ............................ 395
Advantages of Investing in Mutual Funds ..................... 368 Concern about Retirement Benefits in the Future ........ 398
Disadvantages of Investing in Mutual Funds ................ 368 Employer-Sponsored Retirement Plans ..... 399
Net Asset Value per Share ............................................ 368 Defined-Benefit Pension Plans ..................................... 399
Open-End versus Closed-End Funds ............................ 369 Defined-Contribution Pension Plans ..............................401
Load versus No-Load Funds ......................................... 370
Management Expense Ratio (MER) ............................. 372 Individual Retirement Savings Plans ........ 404
Registered Retirement Savings Plans (RRSPs) ............ 404
Types of Mutual Funds ............................... 372 Tax-Free Withdrawals from an RRSP ............................ 406
Types of Equity Mutual Funds ...................................... 372 Tax-Free Savings Accounts (TFSAs) .............................. 407
Types of Bond Mutual Funds ......................................... 374 Locked-in Retirement Accounts (LIRAs) ....................... 408
Return and Risk of a Mutual Fund ............ 375 Retirement Income Conversion Options ... 408
Return from Investing in a Mutual Fund ........................376 Retirement Income Conversion Options
Risk from Investing in an Equity Mutual Fund ...............376 for RRSPs and TFSAs .................................................... 408
Trade-off between Expected Return and Risk Retirement Income Conversion Options for a LIRA ......410
of Equity Funds ............................................................. 377 Reverse Mortgages ....................................................... 411
Risk from Investing in a Bond Mutual Fund .................. 378
Trade-off between Expected Return and Risk Your Retirement Planning Decisions ......... 411
of Bond Funds .............................................................. 378 Which Retirement Plan Should You Pursue?.................. 411
How Much Should You Contribute? .............................. 412
Deciding among Mutual Funds ................. 378 How Should You Invest Your Contributions? ................. 413
Reviewing a Mutual Fund’s Fund Facts ........................ 379
How Much Does It Cost? ............................................. 379 Estimating Your Future Retirement
What If I Change My Mind? ......................................... 379 Savings .........................................................415
Estimating the Future Value of One Investment ........... 415
Quotations of Mutual Funds ..................... 380 Estimating the Future Value of a Set of
Exchange-Traded Funds (ETFs) .................. 380 Annual Investments ...................................................... 418
Segregated Funds ....................................... 381 Summary ..................................................... 420

Principal Protection ....................................................... 381
Death Benefit Guarantee .............................................. 382
Challenge Questions .................................................... 423
Creditor Protection ....................................................... 382
Ethical Dilemma............................................................ 424
Assessing the Value of Protection ................................ 382
Summary ..................................................... 383 Psychology of Personal Finance: Your Retirement ........ 425
Review Questions ........................................................ 384 Mini-Case 1: Calculating Retirement Income ............... 425
Financial Planning Problems ......................................... 384 Study Guide .................................................................. 426
Challenge Questions .................................................... 385
Ethical Dilemma............................................................ 385
Chapter 15
Psychology of Personal Finance: Investing in
Estate Planning ............................ 428
Mutual Funds ................................................................ 386 Background on Wills ................................... 429
Mini-Case 1: Types of Mutual Funds ............................. 386 Creating a Valid Will ...................................................... 429
Mini-Case 2: Mutual Fund Selection ............................. 387
Study Guide .................................................................. 387
Common Types of Wills .............................. 430
Contents xiii
Key Components of a Will .......................... 430 Psychology of Personal Finance:

Changing Your Will ........................................................ 435 Your Financial Plan ........................................................ 462
Mini-Case: Financial Planning ....................................... 463
Probate Fees and Taxes at Death ............... 436 Study Guide .................................................................. 463
Executing the Will during Probate................................. 436
The Final Tax Return ...................................................... 437
Optional Tax Returns ..................................................... 437 Appendix A Projects .................... 465
Estate Planning Strategies ........................ 437 Assessing Your Credit ................................. 465
Joint Tenancy with Rights of Survivorship Career Planning Project.............................. 465
(JTWROS) ..................................................................... 437 Information on Career Planning .................................... 466
Beneficiary Designations .............................................. 438
Trusts ............................................................................ 438 Leasing an Apartment ................................ 467
Contributions to Charitable Organizations .................... 440 Stock Market Project .................................. 468
Other Aspects of Estate Planning ............. 440 Obtaining Stock Price and Dividend Information .......... 468
Living Will ..................................................................... 440 Enter the Stock Information.......................................... 468
Power of Attorney ......................................................... 440 Determine Your Gain over the School Term ................... 469
Maintaining Estate Planning Documents ..................... 441 Comparing Your Stock to the General Market ............... 469
Team Project ................................................................. 469
Summary ..................................................... 442
Review Questions ........................................................ 442 Comparison Shopping: Online
Ethical Dilemma............................................................ 443 versus Local Purchases .............................. 469
Psychology of Personal Finance: Your Will .................... 444
Mortgage Case Project ............................... 470
Mini-Case: Estate Planning ........................................... 444 Mutual Fund Comparison Project ............. 471
Study Guide .................................................................. 444 Category: Canadian Equity ........................................... 472
PART 6 Appendix B Your Career............... 473

SYNTHESIS OF FINANCIAL Determining Your Career Path.................... 473
Factors That May Affect Your Career Path ..................... 473
PLANNING Sources of Information That Can Help You
to Select Your Career Path ............................................ 473
Chapter 16 Getting the Skills You Need ........................ 474
Integrating the Components Training .......................................................................... 474
of a Financial Plan........................ 450 Education ....................................................................... 474
Review of Components within Expanding Your Education ............................................. 475
a Financial Plan ........................................... 451 Changing Your Career ................................. 475
Budgeting ..................................................................... 451 Self-Employment ...........................................................476
Managing Finances....................................................... 452
Financing ...................................................................... 452 Criteria Used to Assess Applicants.............476
Protecting Your Assets and Income .............................. 452 Your Application .............................................................476
Managing Investments ................................................. 452 Your Resumé .................................................................476
Retirement Planning ..................................................... 453 Job Interviews ...............................................................476
Maintaining Your Financial Documents ......................... 454 Conclusion .................................................................... 477
Integrating the Components ..................... 454

Summary ..................................................... 461 Glossary ............................................................. 478
Review Questions ........................................................ 461 Index ................................................................... 487
Financial Planning Problems ......................................... 462 Answers to Study Guide Questions ................. 503
Preface
When will you be able to buy a home? Can you afford a new car or a vacation? How can you pay off your credit
card balance? What should you invest in?
The answers to these questions are tied directly to how you, as a student, manage your finances. Managing
your finances wisely will bring a sense of security and freedom that you can enjoy for years to come. Very few
courses you will take throughout your post-secondary career will have the potential to profoundly shape your
future like a personal finance course. Taking this course is your first step on the path toward a stable financial
future.
With Personal Finance, Third Canadian Edition, as your guide, you will master key concepts that will aid you
in managing and increasing your personal wealth. The aim of this textbook is to equip you with knowledge and
decision-making tools to help you make sound financial decisions.
New to the
Third Canadian Edition
Revised Chapter Introduction Cases:

Each chapter opens with a newly designed, highly-visual
chapter introduction, with all new, student-centric sce-
narios that include at least two discussion questions
designed to introduce important concepts and themes
covered in the chapter.
chapter
Planning with Personal
Financial Statements 3
B
rittany Hartman, 22, had
graduated with her Market-
ing Diploma a year ago.
Almost immediately, she found a job as a
salesperson for a technology company.
Although her take-home pay of $2700 per
month seemed reasonable, she was still
having trouble gaining control of her per-
sonal finances.
In contrast, Brittany’s best friend, Manny

Martinez, had a reputation for being
more careful with his expenses. Brittany
would often comment on how Manny
Maridav/Shutterstock
would always bring lunch to college
from home; whereas Brittany purchased food at the cafeteria almost every day.
Manny was able to show Brittany that she would save a lot of money if she changed her
daily spending habits. Brittany made a commitment to herself to reduce her expenses by
bringing lunch to work three days a week. For the most part, she kept her promise for the
rest of the year.
However, old habits are hard to break; once again Brittany looked to her frugal friend to
help her out.
QUESTIONS:
1. What should Manny say to Brittany when he tries to explain to her that she should establish a budget?
What information would she need to establish a budget?
2. What alternative budgeting strategies could Brittany use if she is unable to stick to a budget?
3. What information does Brittany need to create a personal balance sheet? Why is a personal balance
sheet important?
xiv
M03_MADU5575_03_SE_C03.indd 55 05/01/15 4:50 PM

Preface xv
New Free Apps for FREE APPS for

Personal Finance: Personal Goal Planning
Finance Application:
Throughout each chapter, students are Use goalGetter — Financial goal planner by Advisor Software, Inc. to determine how
advised of a variety of useful applications much you need to save to reach your goals. Use this app to enter your current savings,
select goals and their value. goalGetter will let you know how much additional monthly
that they can download to their smart- savings are needed.
phones, for free, that apply to many of the

key concepts covered in the chapter.
PSYCHOLOGY OF PERSONAL FINANCE: Your Taxes

1. This chapter explains how a portion of your portion of the income in taxes later. If you have
income is withheld throughout the year by your
employer, as required by the CRA. You may
a choice, would you prefer to have a higher or
lower amount of income withheld? Explain your New Psychology of
have some flexibility on how much income can
be withheld. A psychological advantage of this
opinion.
2. Read one practical article of how psychology
Personal Finance:
so-called “withholding tax” is that the funds are
pulled from your income before you receive your
affects behaviour when paying taxes. You can
easily retrieve possible articles by doing an online
Personal finance behaviour is influenced by
paycheque. It is as if that portion of your income
was never yours anyway. It may be more painful
search using the terms “psychology” and “paying
taxes”. Summarize the main points of the article.
psychology. For example, some spending deci-
to receive all the income and then have to pay a
sions are made on impulse due to the desire for
immediate satisfaction. A new feature called
Psychology of Personal Finance explains how
financial planning decisions are affected by
M01_MADU5575_03_SE_C01.indd 13 psychology. At the end of every chapter, there 05/01/15 2:57 PM
is also an accompanying section that tests stu-

dents’ understanding of how psychological
forces influence personal finance decisions.
New end-of-chapter
Challenge Questions:
Multi-step financial planning problems
called Challenge Questions require deeper
analysis, inviting students to apply knowl- CHALLENGE QUESTIONS
C
edge and demonstrate chapter material
comprehension. 1. Calculate the NAVPS for a mutual fund with the fol-
lowing values:
2. At the beginning of last year, Thomas purchased
200 shares of the Web.com fund at a NAVPS of
$26 and automatically reinvested all distributions.
Market value of securities
Because of reinvesting, Thomas ended the year
in the portfolio $1.2 billion
M04_MADU5575_03_SE_C04.indd 107 24/11/14 7:57 PM with 265 shares of the fund with a NAVPS $32.20.
Liabilities of the fund $37 million What was his total percentage return for the year
Shares outstanding 60 million on this investment?
New end-of-chapter Mini-Cases:

At the end of each chapter, new mini-cases
MINI-CASE: SMART GOAL PLANNING
provide students with an opportunity to
Brittany Hartman, 22, graduated with her Marketing diploma a year ago. Almost imme- synthesize and to apply a number of
diately, she found a job as a salesperson for a technology company. After bonuses, she
was making about $3500 per month. concepts from each chapter in a practical
Although Brittany was able to get by, she never really considered the impact of her daily
spending habits on her cash flow. Now, she had some financial goals and she needs
manner. There are 1 to 2 new mini-cases
help. Whenever she can, Brittany uses her credit card to make purchases. Although the
balance on her credit card is a little high (the balance is $8000 and climbing); Brittany
per chapter.
has little trouble making the minimum monthly payment of $250. Brittany would like to
see the credit card balance go down. Eventually, she would like to pay it off completely.
Brittany’s other goal is to save $4000 a year so that she can retire 35 years from now.
She indicates that she would like to start saving in five years. She feels that delaying
the start of her retirement will not have a big impact on the final amount of retirement
savings she will accumulate.
Do Brittany’s goals meet the SMART goal criteria? If not, which aspects of SMART goal
planning is she missing with respect to her goal of paying off her credit card? How about
with respect to her retirement goal? What advice do you have for Brittany that would
help her make her goals SMART?
M13_MADU5575_03_SE_C13.indd 385 23/12/14 2:15 PM

xvi Preface
More visual exhibits:

More exhibits appear throughout the EXHIBIT 13.5 An Example of Mutual Fund Price Quotations
entire book to enhance concept retention YTD
and to provide a visual representation of Blazer Funds NAVPS ($) Net Change ($) Annual Return 3-Year Return
facts and figures. Growth Fund 32.23 +0.15 8.26% 22.51%
Equity Income Fund 45.10 +0.22 9.78% 26.34%
Improved Ethical Dilemmas:

ETHICAL DILEMMA
End-of-chapter ethical scenarios focus on topics
To obtain more business, mutual fund companies have than it is on a back-end load fund. As a result of the
made it easier for investors to switch between mutual free switching rule, some advisers have recommended of student interest to engage the reader. Designed
funds within the same family. For example, if you buy a back-end load fund and then transferred a portion of
the XYZ Equity Growth Fund, you are able to switch to the investment during the following year into an identi- to help students apply ethical principles to finan-
the XYZ Equity Value Fund at no charge. This feature is cal fund that has a no-load fee structure. By doing this,
particularly beneficial for investors who purchase funds the adviser is able to maximize his or her commission cial situations and problems, these real-life ethi-
that have a back-end load, since these funds normally at the beginning of the trade and during the period that
charge a fee if you redeem the investment within a cer- the investor owns the investment. cal situations are presented along with critical
tain period of time. In many cases, the same fund may
be redeemed as a no-load fund or as a back-end load
a. Discuss the ethics of this practice.
thinking questions.
fund. Investment advisers normally earn more com- b. As a consequence of this practice, what is the
mission for selling a back-end load fund. However, the impact on the MER over the long term? Discuss
regular annual service fee on a no-load fund is higher fully.
Key Chapter Updates

Chapter 1: In Chapter 1, there is a greater emphasis on the notion of SMART goal planning. That is, a
goal should be specific, measurable, action-oriented, realistic, and time bound. Throughout
Chapter 1 and the remainder of the text, examples are provided to demonstrate for students
how SMART goals provide a simple way to organize your goals at various life stages and
offer clarity as to what you need to do in order to enact your goals.
Chapters 6 and 7: Chapters 6 and 7 were combined in this edition. In addition to a new streamlined presenta-
tion of the topic of credit, students are introduced to the concepts of credit score, credit cards,
personal loans, and identity theft as interrelated topics. Presenting these topics together rein-
forces the fact that they influence each other.
Chapter 11:
M13_MADU5575_03_SE_C13.indd 385
The topic of investment risk is enhanced with a discussion of the difference between sys-
23/12/14 2:15 PM
tematic and unsystematic risk. In addition, students are introduced to beta as a measure of
investment risk.
Chapter 14: Content and examples have been updated to reflect new rules concerning the amount of benefit
a pensioner may receive from the Old Age Security program and the Canada Pension Plan.
TRIED AND TRUE LEARNING TOOLS

IN THE THIRD CANADIAN EDITION
Learning Objectives THE OBJECTIVES OF THIS CHAPTER ARE TO:
Corresponding to the main 1. Explain how you could benefit from personal financial planning
headings in each chapter, and 2. Identify the key components of a financial plan
3. Outline the steps involved in developing a financial plan
indicated by marginal callouts
throughout the chapter, the list
of learning objectives guides stu-
M13_MADU5575_03_SE_C13.indd 380
L.O.1 How You Benefit from an Understanding 23/12/14 2:15 PM
dents through the material. of Personal Finance

personal finance (per- Personal finance, also referred to as personal financial planning, is the process of planning
sonal financial planning) your spending, financing, and investing activities, while taking into account uncontrol-
The process of planning lable events such as death or disability, in order to optimize your financial situation over
your spending, financing,
and investing activities, time. A personal financial plan specifies your financial goals and describes the spending,
while taking into account financing, and investing activities that are intended to achieve those goals and the risk
uncontrollable events, management strategies that are required to protect against uncontrollable events such
such as death or disabil- as death or disability. Although Canada is one of the world’s wealthier countries, many
ity, in order to optimize Canadians do not manage their financial situations well. Consequently, they tend to
your financial situation
over time. rely too much on credit and have excessive debt. Excessive debt levels will affect your
ability to achieve important financial goals. Consider the following statistics:
l fi i l l
Preface xvii
Marginal Glossary mortgage companies

Non-depository institu-
Mortgage Companies. Mortgage companies specialize in providing mortgage loans to
individuals. These companies are able to offer their clients competitive mortgage rates
tions that specialize in
from a number of different financial institutions. This type of non-depository institu-
Throughout the text, key terms and their providing mortgage loans
to individuals. tion acts as a financial intermediary between depository institutions and the consumer.
Referring to Exhibit 5.2, RBC offers these services through its RBC Royal Bank business
definitions appear in the text margin where segment.
they are first discussed. investment dealers

Non-depository institu-
Investment Dealers. Investment dealers facilitate the purchase or sale of various invest-
ments, such as stocks or bonds, by firms or individuals by providing investment banking
tions that facilitate the and brokerage services. Investment banking services include assisting corporations and
purchase or sale of vari-
ous investments by firms governments in obtaining financing for many activities, such as building projects and
or individuals by providing expansion plans. This financing advice helps both corporations and governments to price
investment banking and their securities for sale and assists them in finding investors such as individuals, mutual
brokerage services. funds, and other organizations willing to invest in their securities. Investment banking
Go to: services also include advising and evaluating businesses with regard to mergers, acquisi-
www.canpayday.ca/pay- tions, and other similar corporate activities.
day-loan-calculator.aspx In addition to offering investment banking services, investment dealers provide bro-
This website kerage services, which facilitate the trading of existing securities. That is, the firms execute
provides trades in securities for their customers. One customer may want to sell a specific stock
a calculator that allows while another may want to buy that stock. Brokerage firms create a market for stocks
you to determine the inter- and bonds by matching willing buyers and sellers. In the case of RBC, these services are
est cost of a payday loan. offered through its RBC Capital Markets business segment.
insurance companies Insurance Companies. Insurance companies sell insurance to protect individuals or
Non-depository institu- firms from risks that can result in financial loss. Specifically, life and health insurance
tions that sell insurance to companies provide insurance in the event of a person’s death, disability, or critical illness.
protect individuals or firms
from risks that can incur Property and casualty companies provide insurance against damage to property, includ-
financial loss. ing automobiles and homes. Insurance serves a crucial function for individuals because
Explanation by Example it protects them (or their beneficiaries) from a significant loss of income and/or savings
that may occur as a result of injury, illness, or death. Chapters 8 and 9 discuss insur-
ance options in detail. Exhibit 5.2 shows that RBC offers these services through its RBC
Practical examples applying concepts Insurance business segment.
in realistic scenarios throughout

the chapters help cement student
understanding of key concepts.
EXAMPLE Sarah Scott’s expenses total $1930 per month. She would like to maintain an emergency
fund equal to three months’ expenses, and calculates that she needs $5790 ($1930 × 3)
in the fund. Her disposable income is normally about $2260 per month, leaving her with
$330 in net cash flows each month, or $3960 per year. To build up her emergency fund
as quickly as possible, Sarah will deposit the entire $330 per month of excess cash into
an emergency fund until she reaches her cash value objective. Based on her aggressive
savings target, Sarah should be able to reach her goal within 18 months, assuming that
she does not need to access the emergency fund during the period she is building it up.
Myth or Fact
myth or fact Throughout the text, “Myth or Fact” margin features highlight popular
I don’t make enough misconceptions about financial planning; providing students with an
money to save. opportunity to reinforce key ideas from the chapter and/or to use their
intuition to determine whether a statement is a myth or a fact.
M05_MADU5575_03_SE_C05.indd 133 02/12/14 12:08 PM
Summary SUMMARY
In bullet form, the summaries correlate L.O.1 Provide a background on money L.O.3 Describe the banking services offered
management by financial institutions
the key points from each chapter with When applying money management techniques, A depository institution may offer a wide variety
the learning objectives provided at the you should invest any positive net cash flows in an of savings alternatives, including chequing ser-
account that is designed to hold short-term or liq- vices, debit cards, overdraft protection, a stop
beginning of the chapter. uid assets, such as a chequing account or a savings payment service, online banking, credit card
account. Liquidity is necessary because there will financing, safety deposit boxes, automated bank-
be periods when your income is not adequate to ing machines (ABMs), certified cheques, money
cover your expenses. A line of credit and/or a credit orders and drafts, and traveller’s cheques.
card are possible sources of short-term financing
L.O.4 Explain how to select a financial
when short-term investments are insufficient.
institution
L.O.2 Compare the types of financial
Your choice of financial institution should be
institutions
based on convenience, deposit rates, deposit
Depository institutions (chartered banks, trust and insurance, and fees. You should be able to deposit
loan companies, and credit unions/caisses popu- and withdraw funds easily. Deposit rates vary for
laires) accept deposits and provide loans. Finan- different types of savings alternatives at different
cial conglomerates offer a wide variety of these financial institutions. The fees charged by financial
services so that individuals can obtain all of their institutions vary from one to the next.
financial services from a single firm. Non-depository
institutions include finance and lease companies L.O.5 Describe the savings alternatives
(which provide financing and leasing options for offered by financial institutions
assets, such as a car), mortgage companies (which Popular short-term investments considered for
provide mortgage brokerage services), investment money management include savings deposits,
dealers (which provide brokerage and other ser- term deposits, GICs, Canada Savings Bonds,
vices), insurance companies (which provide insur- and money market funds. Savings deposits offer
ance), mutual fund companies (which offer mutual the most liquidity, while GICs and money mar-
M05_MADU5575_03_SE_C05.indd 130 02/12/14 12:08 PM
funds), payday loan companies (which provide ket funds offer the highest return. In order to
short-term loans), cheque cashing outlets (which avoid tax on growth, a tax-free savings account
cash cheques for a fee), and pawnshops (which can be used to hold many types of short-term
provide small secured loans). investments.
xviii Preface
Review Questions REVIEW QUESTIONS

1. Define money management. How does it differ 7. List and describe the eight types of non-depository
The Review Questions test students’ from long-term investment or long-term borrowing financial institutions.
understanding by asking them to compare decisions? 8. List and describe some of the banking services
2. What is liquidity? How is your personal cash flow offered by financial institutions.
and contrast concepts, interpret financial statement used to help manage your liquidity? 9. Why do individuals use chequing accounts? What
quotations, and decide how financial data Why is liquidity necessary? is the disadvantage of having funds in a chequing
3. Name some ways in which an individual might account? What is the difference between a debit
can be used to make personal finance handle a cash flow deficiency. Which would be card and a credit card?
preferable? Why?
decisions. 10. Explain overdraft protection. Are all bank fee
4. What types of investments are appropriate as structures the same?
short-term investment alternatives? 11. Name some special services that banks provide.
5. Describe and compare the three types of deposi- How might you make use of them?
tory institutions. 12. Steve just received his first paycheque and wants
6. What is a financial conglomerate? List some to open a chequing account. There are five banks
services that financial conglomerates provide. in his hometown. What factors should Steve
Give some examples of financial conglomerates. consider when choosing a bank?
FINANCIAL PLANNING PROBLEMS

MyFinanceLab All Financial Planning Problems can be found in MyFinanceLab.
M05_MADU5575_03_SE_C05.indd 143 02/12/14 12:08 PM
Refer to the chart on the next page when answering Problems 1 through 4.
1. Stuart wants to open a chequing account with except for the two mailed yesterday have cleared.
a $100 deposit. Stuart believes he will write 15 Based on his balance, Paul writes a cheque for a
cheques per month and use other banks’ ABMs new stereo for $241. He has no intention of making
eight times a month. He will not be able to main- a deposit in the near future. What are the conse-
tain a minimum balance. Which bank should Stu- quences of his actions?
art choose?
2. Julie wants to open a bank account with $75. Julie
6. Mary’s previous bank statement showed an end-
ing balance of $168.51. This month, she deposited
Financial Planning Problems
estimates that she will write 20 cheques per month $600 in her account and withdrew a total of $239.
and use her ABM card only at the home bank. She Furthermore, she wrote a total of five cheques, At the end of each chapter, Financial
will maintain a $200 balance. Which bank should two of which have cleared. These two cheques
Julie choose? total $143. The three outstanding cheques total Planning Problems require students
$106.09. Mary pays no fees at her bank. What is
3. Veronica plans to open a chequing account with
her $1200 tax refund. She believes she can main- the balance shown this month on Mary’s bank to demonstrate knowledge of math-
tain a $500 minimum balance. Also, she estimates statement? What is the adjusted bank balance? ematically based concepts to perform
that she will write 10 cheques per month and will 7. Nancy is depositing $2500 in a six-month GIC that
use other banks’ ABMs as much as 15 times per pays 4.25 percent interest, compounded annually. computations in order to make well-
month. Which bank should Veronica choose? How much interest will she accrue if she holds the
informed personal finance decisions.
End-of-Chapter Study Guide

Study Guide
Each chapter concludes with Circle the correct answer and then check the answers in the back of the book to chart your progress.
10 multiple-choice and 10 true/false Multiple Choice The cost of this service may include all of the fol-
study questions for extra review. 1. Which of the following statements regarding liquid-
lowing, except
a. A high interest rate charged on the overdraft
ity is incorrect?
balance
a. Liquidity is necessary because there will be peri-
b. A limit to the number of banking services you
ods when your income is not adequate to cover
can have with one financial institution
your expenses.
c. A one-time fee every time you need to use the
b. Alternative sources of liquidity include access to a
protection
credit card, a line of credit, or an emergency fund.
d. A monthly fee to your account simply for having
c. Maintaining adequate liquidity is important for sit-
the protection available
uations where your income exceeds your expenses.
d. A useful rule of thumb is that you should have 7. Rank the following ABM machines in order of cost
between three and six months’ worth of expenses to you, from least expensive to most expensive.
in an emergency fund. ABM1 belongs to the bank with which you have a
chequing account. ABM2 is owned privately. ABM3
2. Which of the following is a type of non-depository
M05_MADU5575_03_SE_C05.indd 144 02/12/14 12:08 PM is owned by a financial institution with which you
institution?
do not have an account.
a. Chartered banks
a. ABM1, ABM2, ABM3
b. Trust companies
b. ABM2, ABM1, ABM3
c. Credit unions
c. ABM3, ABM2, ABM1
d. Finance companies
d. ABM1, ABM3, ABM2
3. The main types of non-depository institutions that
8. Which of the following banking products can be
serve individuals include finance and lease compa-
cashed immediately upon receipt?
nies, pawnshops, investment dealers, and _______.
a. Certified cheque
a. Financial advisers
b. Traveller’s cheque
b. Insurance companies
c. Draft
c. Schedule III banks
d. All of the above
d. Caisses populaires
9. When are Canada Savings Bonds available for
4. All of the following are advantages of online bank-
purchase?
ing, except
a. From early January to April 1 each year
a. Provides real-time reporting of account information
b. Throughout the entire year
b. Allows you to transfer funds among accounts
c. From early October to April 1 each year
c. Allows you to close chequing, savings, or other
d. From early January to June 30 each year
accounts
d. Allows you to pay bills electronically 10. Donald is considering how he should allocate the
money he has in his emergency fund. He expects
5. The primary advantage of calling an automated phone
that interest rates will decrease sharply in the next
service or logging on to your financial institution’s
six months. As a result, he is considering investing
website in order to check your account balance is
in a two-year GIC. He feels that when his invest-
a. You do not have to talk to someone
ment matures, interest rates will have increased
b h f b l h ld
Preface xix
An Interactive Approach
Personal Finance’s interactive approach incorporates online resources along with many examples, problems, and
ongoing case studies, all of which focus on providing students with hands-on practice applying financial concepts.
MyFinanceLab
This integrated online homework tool gives students the hands-on practice and tutorial assistance they need to
learn skills efficiently. Ample opportunities for online practice and assessment in MyFinanceLab are seamlessly
integrated into the content of each chapter and organized by section within the chapter summaries. Nearly all
Financial Planning Problems are available in MyFinanceLab, and select Review Questions are also available for
instructors to assign. MyFinanceLab also includes helpful financial planning tools such as financial calculators
and tutorials, finance news feeds, and glossary flashcards. Please visit MyFinanceLab for more information and
to register.
MyFinanceLab Visit MyFinanceLab for additional study and practice tools. Financial Planning
Problems are available in the Study Plan. Create your own study plan, generate personal cash flow state-
ments and balance sheets, and set personal financial goals.
Build Your Own Financial Plan—Personal Finance’s

structure mirrors a comprehensive financial plan. In each chapter,
students learn the skills they need to build their own financial plan.
The Build Your Own Financial Plan exercises are an integrated
series of problems and worksheets that present a portion of a finan-
Go to cial plan based on the concepts presented in each chapter. The exer-
www.themoneybelt.ca/ cises and associated worksheets are available on MyFinanceLab. At
thecity-lazone/eng/mod2/ the end of the course, students will have completed a financial plan
mod2-2-eng.aspx that they can continue to implement beyond the school term.
This website
provides
a Lifestyle Reality Check
to help you see if you can Financial Planning Weblinks—In every chapter, marginal
afford the choices you weblinks highlight useful internet resources. You will find a website
want to make. address and a description of what type of information the website
provides.
Financial Planning Online Exercises—At the end

of each chapter, Financial Planning Online Exercises show stu-
dents how to obtain, critically evaluate, and use internet-based
resources in making personal finance decisions.
M03_MADU5575_03_SE_C03.indd 65 28/11/14 9:06 AM
FINANCIAL PLANNING PROBLEMS

MyFinanceLab All Financial Planning Problems can be found in MyFinanceLab.
1. Pete’s group insurance policy specifies that he 2. Christine’s monthly expenses typically amount
pays 30 percent of expenses associated with to $1800. About $50 of these expenses are work-
orthodontic treatment for his children. If Pete related. Christine’s employer provides disability
incurs expenses of $5000, how much would insurance coverage of $500 per month. How much
he owe? individual disability insurance should Christine
purchase?
M09_MADU5575_03_SE_C09.indd 275 12/12/14 3:55 PM

xx Preface
Build a financial plan for the

Sampson family!
The parents of two children, Dave and
Sharon Sampson, have made few plans
regarding their financial future. They
are eager to start saving toward a new
car, their children’s post-secondary edu-
cation, and their retirement. Students
apply chapter concepts to counsel the
Sampsons. The Sampsons—A Continuing
Case chapter-end cases and accom-
panying worksheets are provided on
MyFinanceLab.
Appendix A provides a number of projects for students to complete

relating to specific aspects of personal finance.
The list of projects includes:
■ Assessing Your Credit
■ Career Planning Project
■ Leasing an Apartment Appendix A
■ Stock Market Project PROJECTS
■ Comparison Shopping: Online
versus Local Purchases The following pages include projects for you to complete relating to specific aspects of personal finance.
• Assessing Your Credit
• Career Planning Project
■ Mortgage Case Project • Leasing an Apartment
• Stock Market Project
■ Mutual Fund Comparison • Comparison Shopping: Online versus Local Purchases
Project • Mortgage Case Project

• Mutual Fund Comparison Project
Assessing Your Credit

If you do not own a credit card, answer the following questions based on how you think you would use a credit
card.
1. Credit Spending. How much do you spend per month on your credit card?
2. Number of Credit Cards. Do you have many credit cards? Are all of them necessary? Do you spend more
money than you would normally as a result of having extra credit cards?
3. Credit versus Cash. Would you make the most of your purchases if you used cash instead of a credit
card? Do you feel like purchases have no cost when you use a credit card instead of cash?
4. Pay Off Part or All of Balance. What is your normal strategy when you receive a credit card bill? Do
you only pay the minimum amount required? Do you typically pay off your entire balance each month?
If you do not pay off the entire balance, is it because you cannot afford to pay it off or because you
would prefer to have extra cash on hand? If you have a positive balance, how do you plan to pay off that
balance: pay all of it off next month or pay only the minimum amount required next month?
5. Credit Limit. Consider the limit on the amount you can spend using your credit cards. Does the limit
restrict your spending? Would you benefit if the limit were increased or reduced?
6. Obtaining Your Consumer Disclosure. A consumer disclosure provides a complete account of all information
on your credit report. Go to the TransUnion Canada website (www.transunion.ca/ca/personal/creditreport/
consumerdisclosure_en.page) to obtain your free consumer disclosure. If you recently obtained your con-
sumer disclosure, review that report rather than obtaining a new one. Notice the types of companies that
requested information on your credit. Is your consumer disclosure accurate? If not, you can write to the
credit bureau to have the wrong information corrected, as explained in the text. You can, and should, obtain
a free credit report by filling out the online form located at www.annualcreditreport.com/index.action.
7. Assessing Your Credit Report. Are you satisfied with your existing credit rating? If not, what steps do
you plan to take to improve your credit rating? For example, could you reduce some debt in the future?
See Chapter 6 for more ideas on improving your credit rating.
Career Planning Project

Personal financial planning involves how you budget your money, manage your liquidity, finance purchases, pro-
tect your assets, invest your money, and plan your retirement and estate. All of these activities are focused on your
money. A related task is career planning, which determines the amount of money that you can earn over time.
Z01_MADU5575_03_SE_APPA.indd 465 22/12/14 4:42 PM

Preface xxi
Appendix B provides direction on determining and managing your career.

Topics include:
■ Determining Your Career Path
■ Getting the Skills You Need
■ Changing Your Career Appendix B
YOUR CAREER
Determining Your Career Path

What career path is optimal for you? Review the factors described here that you should consider when determining
your career path. Then, access the sources of information that are identified below to help make your selection.
Factors That May Affect Your Career Path

Perhaps the obvious first step in determining your career path is to consider your interests, and then identify the
careers that fit those interests. Most people identify several possible career interests, which makes the decision dif-
ficult. However, you may be able to screen your list based on the following factors.
Educational and Skill Requirements. Some jobs may seem interesting but require more education and training
than you are prepared to acquire. For example, the training required to be a doctor may be too extensive and time
consuming. In addition, the entrance requirements are very high. Review the education and skills needed for each
career that appeals to you. From your list of possible career paths, focus on those for which you already have or
would be willing to achieve the necessary background, education, and skills.
Job Availability. There are some career paths that people think they would like to follow and could do so success-
fully, but the paths have a limited supply of open positions relative to applicants. For example, many people want
to be actors or actresses, or waiters at very expensive restaurants. Consider the number of job positions available
compared to the number of applicants pursuing those jobs.
Compensation. Most people consider compensation to be an important criterion when considering job posi-
tions. Some career tracks may be enjoyable but do not provide sufficient compensation. Information on compen-
sation for various types of jobs is available on many websites. For example, at www.workopolis.com you can
insert the type of job position you are curious about and obtain salary ranges for that position in a particular
location in Canada.
Sources of Information That Can Help You to

Select Your Career Path
Consider the following sources of information as you attempt to establish your list of career options from which
to select your optimal career path.
Books on Careers. There are many books that identify careers and describe the necessary skills for each one. Some
books provide a broad overview, while others are more detailed. A broad overview is usually ideal when you are
first identifying the various types of careers that exist. Then, once you narrow down the list, you can find a book
that focuses on your chosen field, such as medicine, engineering, social work, and so on.
Courses. Your college or university courses are a vital source of information about related careers. Courses in
finance can help you to understand the nature of the work in the financial services industry, accounting classes
provide insight into the nature of the work that accountants do, and courses in entrepreneurship may help you
to understand the job skills required of a self-employed individual. Even courses that are broader in scope (for
example, courses in management) may be applicable to many different types of jobs, including those of financial
advisers, accountants, and entrepreneurs. If you enjoyed your basic management course, you may like a job in
which you are involved in managing people, production processes, or services.
Job Experience. Management trainee positions allow some exposure to a particular type of job and allow you to
learn what tasks people in a field do as part of their daily work. Such experience is especially useful because many
jobs are likely to differ from your perception of them.
Z02_MADU5575_03_SE_APPB.indd 473 22/12/14 4:42 PM
Real-Life Scenarios
At the end of each part, students are prompted to build a financial plan for Brad MacDonald using the Brad
MacDonald—A Continuing Case scenarios that are provided at the end of each part of the text. Brad has
expensive tastes—as evidenced by his soaring credit card balance—and he needs assistance in gaining control
over his finances.
HALLMARKS OF PERSONAL FINANCE,

THIRD CANADIAN EDITION
We recognize that students who decide to take a course in personal finance have a variety of academic back-
grounds, interests, and personal goals. For some, such a course might be a prerequisite to a future in finance or
business. Others may decide to take the course because they want to learn more about how to create a budget or
to plan for a large purchase such as a car on their current income. Our aim with this text is to provide students
with all the tools they need to fully understand and plan their personal finances in a way that is useful, engaging,
and rewarding.
xxii Preface
Textbook Content and Organization

We have organized this text into a logical chapter order. The first chapter establishes the text’s organization by
introducing students to the key components of a financial plan. The text is then organized into six parts, beginning
with Chapter 2, which are keyed to the components of a comprehensive financial plan.
Part 1: Tools for Financial Planning
Part 2: Managing Your Financial Resources
Part 3: Protecting Your Wealth
Part 4: Personal Investing
Part 5: Retirement and Estate Planning
Part 6: Synthesis of Financial Planning
Key Topics in the Third Canadian Edition of Personal Finance

We have included several important topics for Canadian students in this edition. You will find some examples of
these key discussions in the following chapters:
Chapter 2: In Chapter 2, we discuss the importance of the time value of money (TVM) concept and provide
a step-by-step introduction to the calculator steps, using the TI BA II Plus calculator, used to per-
form TVM calculations.
Chapter 4: In Chapter 4, we provide background on taxes and tax planning strategies, and then provide an
appendix that guides students step by step through the process of completing a tax return.
Chapter 6: In Chapter 6, we discuss identity theft, different identity theft tactics, and ways to protect against
this kind of theft.
Chapter 9: In Chapter 9, we discuss the various levels of health and life insurance coverage available to Ca-
nadians, including disability, critical illness, and long-term care.
Chapter 10: In Chapter 10, we examine different types of investments and the trade-offs that need to be con-
sidered when examining investment return and risk.
Chapter 11: In Chapter 11, we show students how to complete an analysis of a firm, an economic analysis of
stocks, and an industry analysis of stocks in order to determine an investment strategy.
Chapter 14: In Chapter 14, we present a comprehensive review of public and private retirement options, includ-
ing the process of converting retirement assets to income.
Decision-Making Emphasis
All of the information presented in this book is geared toward equipping students with the expertise they need to
make informed financial decisions. Each chapter establishes a foundation for the decisions that form the basis of a
financial plan. When students complete each chapter, they are, therefore, prepared to complete the related financial
plan subsection provided on MyFinanceLab. Key to understanding personal finance is knowing how to apply con-
cepts to real-life planning scenarios. The many examples, financial planning problems, exercises, and cases place
students in the role of the decision-maker and planner.
Focus on Opportunity Costs

Personal Finance calls attention to the trade-offs involved in financial decisions. The decision to buy a new car
affects the amount of funds available for recreation, rent, insurance, and investments. The text uses numerous
examples and exercises to illustrate and teach students about the interdependence of personal finance decisions.
The quantitative side of financial planning intimidates many students. Personal Finance simplifies the math-
ematics of personal finance by explaining its underlying logic. Formulas and calculations are explained in the text
and then illustrated in examples. Examples that can be solved using a financial calculator are depicted with a keypad
illustration. Students are referred to websites with online calculators whenever pertinent. The Financial Planning
Problems and Financial Planning Online Exercises provide students with ample opportunity to practise applying
math-based concepts.
Preface xxiii
INSTRUCTOR AND STUDENT SUPPORT PACKAGE

The following array of supplementary materials is available to help busy instructors teach more effectively and to
allow busy students to learn more efficiently.
For Instructors
■ Instructor’s Resource and Solutions Manual—This comprehensive manual pulls together a wide variety of
teaching tools and resources. Each chapter contains an overview of key topics, teaching tips, and detailed
answers and step-by-step solutions to the Review Questions, Financial Planning Problems, Challenge Questions,
and Sampson family case questions. Each part concludes with solutions to the Brad MacDonald case questions.
■ Computerized Test Bank—Pearson’s computerized test banks allow instructors to filter and select questions
to create quizzes, tests or homework. Instructors can revise questions or add their own, and may be able to
choose print or online options. These questions are also available in Microsoft Word format.
■ PowerPoint Slides®—This useful tool provides PowerPoint slides illustrating key points from each chapter.
Instructors can easily convert the slides to transparencies or view them electronically in the classroom during
lectures.
Learning Solutions Managers

Learning Solutions Managers work with faculty and campus course designers to ensure that Pearson technology
products, assessment tools, and online course materials are tailored to meet your specific needs. This highly quali-
fied team is dedicated to helping schools take full advantage of a wide range of educational resources, by assisting
in the integration of a variety of instructional materials and media formats. Your local Pearson Education sales
representative can provide you with more details on this service program.
Pearson Custom Library

For enrolments of at least 25 students, you can create your own textbook by choosing the chapters that best suit
your own course needs. To begin building your custom text, visit www.pearsoncustomlibrary.com. You may also
work with your local Pearson Canada sales representative to create your ideal text —publishing your own original
content or mixing and matching Pearson content.
For Students
MyFinanceLab—MyFinanceLab provides students with personalized Study Plans and the opportunity for
additional practice. MyFinanceLab also includes the Pearson eText, a robust electronic version of the textbook
that enables students and instructors to highlight sections, add notes, share notes, and magnify images and pages.
Financial Planning Problems are available in the Study Plan, and the following resources are also available:
■ Build Your Own Financial Plan exercises and worksheets
■ Brad MacDonald—Continuing Case
■ The Sampson Family—Continuing Case
■ Finance News Feeds
■ Financial calculators and calculator tutorials
■ Interactive Glossary Flashcards for all of the key terms in the text
Read the Build Your Own Financial Plan exercises, then use the worksheets to generate a personal cash flow
statement, create a personal balance sheet, and set personal financial goals. After reading the case study, use the
Continuing Case worksheets to prepare cash flow statements and balance sheets for Brad MacDonald and for the
Sampsons.
xxiv Preface
CourseSmart eTextbook
CourseSmart goes beyond traditional expectations by providing instant, online access to textbooks at any time.
CourseSmart provides instructors and students with the ability to search texts and find the content they need
quickly, no matter where they are. With thousands of titles across hundreds of courses, CourseSmart helps instruc-
tors choose the best textbook for their class and give their students a new option for buying assigned textbooks at
lower prices. See all the benefits at http://www.coursesmart.com.
LIST OF REVIEWERS
We sought the advice of many excellent reviewers, all of whom strongly influenced the organization, substance,
and approach of this book.
The following individuals provided extremely useful evaluations during the development of the Third Canadian
Edition:
Robert Foster Patrick O’Meara

Fanshawe College Red Deer College
Morna Fraser Brian O’Neill
Douglas College Brock University
James D Hebert Laila Shin Rohani
Red Deer College University of Guelph
Mary Iannazzo Thomas Varghese
Mohawk College Northern Alberta Institute of Technology
David Kohler Carl Weston
Conestoga College Mohawk College
Jury Kopach Dan Wong
York University SAIT Polytechnic
ACKNOWLEDGMENTS
I wish to acknowledge the help and support of the many people associated with Pearson Canada who made this
textbook possible, including Megan Farrell, Acquisitions Editor; Kathleen McGill, Sponsoring Editor; Rebecca
Ryoji, Developmental Editor; Jessica Hellen, Project Manager; Hardik Popli and Vastavikta Sharma, Production
Editors; Cat Haggert, Copy Editor; Marg Bukta, Proofreader; and Lewis Stevenson, Technical Checker. On a similar
note, this book would not be what it is without input from the many reviewers who had a chance to review the
material. At the end of the day, your suggestions have made this an infinitely better text. I also wish to thank Cecile
Wendlandt, who provided the initial spark that gave me the energy to work on this project.
—Hardeep Gill
Another random document with
no related content on Scribd:
Ilmarisesta — aina sama mieltä hellyttävä luonnollisuus, sama
kaunismuotoinen esittäminen.
Otamme Kalevalan kuvakieltä tarkastaaksemme puheeksi erään

häärunoista. Pohjolan maan kuulun tyttären ja Kalevalan taitavan
sepon Ilmarisen häät on juuri Pohjolan avarassa pirtissä pidetty. On
siis jäljellä vain morsiamen lähtö entisestä kodistaan uuteen kotiin
Ilmarisensa kera. Häät olivat suomalaisten kesken suurimmat
kotoiset juhlat, ja olihan eroamishetkessä edessä vakava
elämänkysymys, jossa syvimmät tunteet tulvivat esille. Siksi
morsiamen lähtöhetkeä ei runotar lyhyesti vain mainitse, vaan luo
meille siitä laajahkon kuvan. Lähtötilaisuudessa koetettiin morsian
saada oikein selvästi tuntemaan eron kodissa vietetyn ja nyt alkavan
omintakeisen elämän välillä. Tahdottiin morsian ensin saada
ymmärtämään, miten hän lapsuuden kodissa on ollut kaikkien
rakastama ja ihailema. Nuorta tyttöä näemme silloin verrattavan
kukkaan, mansikkaan, kuutamoon j.n.e.
Kasvoit kukkana kujilla, ahomailla mansikkana,
tai
olit kukkana kotona, ilona ison pihoilla, iso kutsui

kuutamoksi, emo päivän paisteheksi, veikkosi vesivaloksi,
siskosi siniveraksi.
Hän on ollut oikea kodin lempilapsi:
nousit voille vuotehelta, maiolle makoamasta, venymästä

vehnäisille, pettäjäisille pehusta, kun et voinut voita syöä,
silpasit sianlihoa.
Niin nuo kaikille yhteiset huolettomat ja suruttomat lapsuuden
päivät olivat olleet hänelläkin:
ei ollut huolta ollenkana, ajatusta aioinkana, annoit huolla

honkasien, ajatella aiaksien, surra suolla suopetäjän,
kangaskoivun kankahalla, itse liehuit lehtyisenä, perhosena
pyörähtelit.
Sanalla sanoen:
niin neito ison kotona, kuin kuningas linnassansa.
Mutta näiltä iloisilta päiviltä oli kuitenkin tytär toivonut pois. Hän oli
ollut ainakin vanhempien mielestä, kuten runo sanoo:
käpäs kättä antamahan, kiivas kihlan ottelohon. sormuksen

sovittelohon.
Ja hän itsekin oli aina ajatellut:
kun oisi jalka kynnyksellä toinen korjassa kosijan, oisit

päätäsi pitempi, korvallista korkeampi.
Ja hän oli odottanut sitä hetkeä, niinkuin maamies odottaa hyvää

vuotta ja niinkuin lapset odottavat kesän tuloa:
vuotin kuin hyveä vuotta, katsoin kuin kesän tuloa.
Nyt tuo toivottu hetki on tullut. Lähtö on nyt käsissä. Oli tarpeellista
varustaa nuorta naista tulevan elämän koettelemuksille. Oli
vanhempien ja ennen kaikkia äidin raskas velvollisuus tällä hetkellä,
jolloin sydän muutenkin tahtoi pakahtua, vielä johtaa mieleen suruja
ja mielikarvautta, joita tuleva elämä povessaan kantoi nuoren
emännän varalle. Ehkä äiti puhui omasta kokemuksestaan, ehkä
hänen ajatuksiinsa sisältyi useammankin eletyn elämän kokemus.
Mutta kaikessa tapauksessa: Tytär oli opastettava, ettei elämän
kovuus pettymyksenä lankeisi hänen osallensa.
Sattuvasti runo kuvaa, miten uudessa kodissa on kaikki oleva

toisenlaista:
toisin siellä torvet soivat, toisin ukset ulvaisevat, toisin

vierevät veräjät, sanovat saranarauat.
Nuori emäntä ei osaa toimia ja askaroida niinkuin talonväki

odottaisi:
et osaa ovissa käyä, veräjissä vieretellä talon tyttären

tavalla; et tunne puhua tulta, eikä liettä lämmitteä talon
miehen mieltä myöten.
Mutta vielä: kaikki ovat hänelle tylyjä, kaikki häntä arvostelevat ja

moittivat, kaikki etsivät hänessä huonoja puolia ja tuomitsevat:
appi haukkuvi havuiksi, anoppisi ahkioksi, kyty

kynnysportahiksi, nato naisien pahoiksi.
Hellyyttä ei kukaan hänelle osoita, mutta sen sijaan hän yllin kyllin
saa kokea
apen luista leukaluuta, anopin kivistä kieltä, ky'yn kylmiä

sanoja, na'on niskan nakkeloita.
Äiti tietää samalla, että ero ei tapahdu päiväksi tai pariksi, vaan
koko elinijäksi. Tytär menee pois ja hänen ja kodin välisten siteitten
täytyy katketa. Hänen ja entisen kodin täytyy vieraantua toisistaan.
Miten kauniisti kansanruno antaakaan äidin sanoa tuon
syvätunteisen ja monisäkeisen asian:
askelt' on piha pitempi, kynnys hirttä korkeampi sinun toiste

tullessasi.
Eipä ihme, että morsian tätä kuunnellessaan tuli apealle

mielialalle.
Mutta kun äiti ei enempää voi lapsensa mieltä synkistyttää, niin

sen tekee akka askarvaimo, talon ainoinen asuja, joka morsianta
itkettääkseen mitä mustimmilla väreillä kuvaa nuoren miniän
asemaa. Kuin kiduttamalla kiduttaakseen morsianta, hän purevasti
uhuttelee jo itkuun purskahtamaisillaan olevaa tyttöä:
kutti, kutti, neiti nuori, käeten kävit tulehen, tieten tervan

keittehesen, riensihit revon rekehen, läksit karhun kantasille,
revon reessänsä veteä, karhun kauas kannatella, ikiorjaksi
isännän, aikaorjaksi anopin. Läksit kouluhan kotoa, piinahan
ison pihoilta, kova on koulu käyäksesi, piina pitkä ollaksesi;
siell' on ohjat ostettuna, varustettu vankirauat, ei ketänä
muuta vasten, vasten on vaivaista sinua.
Sanoimme edellä, että neito ison kotona oli kuin kuningas

linnassansa.
Toisenlainen on miniän asema:
niin miniä miehelässä,

kuin vanki Venäehellä.
Vasta sitten jos miniä olisi yliluonnollisen nopea toimissaan,

puikkelehtiva kuin savu tai kevyt kuin lehti askaroidessaan, silloin
vasta hän olisi talonväen mielestä hyvä:
äsken sie hyvä olisit, äsken kerta kelpoaisit: utuna ulos

menisit, savuna pihalle saisit, lehtisenä lenteleisit, kipunoina
kiiättäisit.
Mutta ei sekään riittäisi. Vielä hänen tulisi olla tyytyväinen kuin

kala mykkä valittamatta koskaan, sirosuinen, vähäruokainen, valpas
kuin vesilintu:
piteä hänen pitäisi, piteä, piloisen piian, lohen mieli, kiiskin

kieli, lammin ahvenen ajatus, suu sären, salakan vatsa,
meriteiren tieto saa'a.
Mutta tähän täytyy kaikkien vastata samoinkuin kansanrunokin:
et ole lintu lentäjäksi, etkä lehti liehujaksi, et kipuna

kiitäjäksi, savu saajaksi pihalle.
Tällaisen miniän aseman kuvauksen jälkeen ei ole enää liioiteltu

se askarvaimon tekemä loppupäätelmä kaikesta, mitä neito hyvää
menettää ja sijaan saa huonoa:
jo nyt vaihoit, minkä vaihoit, vaihoit armahan isosi appehen

ani paha'an, vaihoit ehtoisen emosi anoppihin ankarahan,
vaihoit Viljon veljyesi kyyttäniskahan kytyhyn, vaihoit siskosi
siviän naljasilmähän natohon, vaihoit liinavuotehesi nokisihin
nuotioihin, vaihoit valkeat vetesi likaisihin lietehisin, vaihoit
hiekkarantasesi mustihin muraperihin, vaihoit armahat ahosi
kanervikkokankahisin, vaihoit marjaiset mäkesi kaskikantoihin
kovihin.
Ehkä tästä kaikesta kajastaa todellisen elämän ankara kokemus.
Mutta se on samalla selvä todistus siihen, että kansamme on ollut
suuri luonnon ihailija, kun se onnettomuuden itseään kohdatessa
tahtoo onnettomuutensa lausua esille luonnon kauneuden
häviämisellä, kuten jo alussa huomautimme.
Ei tunnu meistä suinkaan enää ihmeteltävältä, että morsiamen:

suru syämmelle panihe, vesi silmille vetihe ja että hän itkee rajusti,
runsaat, virtaavat kyyneleet. — Iloinen hääjuhla on kärjistynyt mitä
katkerimmaksi suruksi. Morsian, joka kiihkeimmin on tätä juhlaa
odottanut, odottanut hetkeä saada lähteä omaan uuteen kotiinsa,
näkeekin itsensä turvattomaksi, tunteekin lähtevänsä
kuin syksyisen yön sylihin, keväisen kierän päälle.
Ja kun kansanruno saa kuvataksensa ihmissielun synkkyyttä, niin

siihen se käyttää kaikkein voimakkaimmat värinsä. Se tuntee silloin
kuvaavansa oman kansan pohjatunnetta.
Morsiamen mieltä voi verrata vain kaikkein mustimpiin esineihin:
tok' ei muut muretta tunne, kanna kaihoista syäntä, kuin

kannan minä katala, kannan mustoa muretta, syäntä
syennäköistä, huolta hiilen karvallista.
Ja saadakseen oikein nähdä, miten surullinen mielensä on,

morsian ikäänkuin kysyy itseltään, minkälainen mieli on onnellisilla
ihmisillä ja vastaa siihen:
niin on mieli miekkoisien, autuaallisten ajatus, kuin

keväinen päivän nousu, kevätaamun aurinkoinen.
Ja kun hän sitten tähän vertaa omaa mielialaansa, niin hänen
täytyy tunnustaa, että hänen sydämensä
on kuin laaka lammin ranta, kuin pimeä pilven ranta, kuin

syksyinen yö pimeä, talvinen on päivä musta, viel' on
mustempi sitäkin, synkeämpi syksy-yötä.
Ja itsestään hän sanoo:
olen kuin alli aallokossa, tavi laajalla lahella, uiessa vilua

vettä, vettä jäistä järkyttäissä.
Ja niille, jotka arvelevat, ettei hänellä hupakolla olisi ollenkaan

huolia eikä raskaita ajatuksia, hän vastaa:
enemp' on minulla huolta, kuin on koskessa kiviä, pajuja

pahalla maalla, kanervia kankahalla.
Ja ne ovat niin raskaita, että
hepo ei jaksaisi veteä, rautakisko kingotella, ilman luokin

lekkumatta, vempelen värisemättä.
Mutta kansanruno on sovinnollinen. Se ei tahdo lähettää

morsianta uuteen kotiin mieli täynnä tulevaisuuden pelkoa.
Kansanruno tietää, että ihminen suruihin tarvitsee ei vain itkua, vaan
myöskin rohkaisua. Siksi kansanruno antaa lattialla leikkivän lapsen,
joka vielä lapsen silmällä katselee elämää, lausua elämään
luottamuksen sanat morsiamelle:
ei sinua suolle vieä, ojavarrellen oteta, vievät

viljamättähältä, vievät vielä viljemmälle, ottavat oluttuvilta,
ottavat oluemmille.
Miehen mitä kunnollisimman, talon mitä paraimman morsian saa.
Miehen uhkeutta runotar osoittaa kuvaamalla hänen hevosensa
valjaitten upeutta, niissä kun on:
pyyhyet pyräjämässä, vempelellä vieremässä, rastahat

iloitsemassa, rahkehilla laulamassa, kuusi kultaista käkeä
länkilöillä lekkumassa, seitsemän siniotusta reen kokalla
kukkumassa.
Vieläkin paremman kuvan runotar lapsen suun kautta antaa

miehen toimeliaisuudesta. Tässäkin runo käyttää omaa
kuvaustapaansa: se ei kerro ainoastaan miehestä itsestään, vaan
osoittaakseen, miten uuttera metsämies sulho on, runo mainitsee
hänen jousensa ja koiransa:
ei sen jouset jouten olle, viinet vasamilla venyne, koirat ei

ne koissa maanne, pennut pehkuilla levänne.
Mutta miehellekin annetaan tunnustus aikaisesta metsässä olosta:
kolmasti tänä keväinä, aivan aika huomenessa, nousi

nuotiotulelta, havasi havusijalta, kolmasti tänä keväinä, kaste
on silmille karissut, havut päänsä harjaellut, varvat vartalon
sukinut.
Vihdoin itse talokin saa kiitoksen varakkuudesta ja hyvässä

kunnossa olemisesta:
onpa tällä sulhollamme korvet koivin kulkevia, särkät säärin

juoksevia; sata on sarven kantajata, tuhat tuojoa utaren,
aumoja joka aholla, purnuja joka purolla, lepikköiset
leipämaina, ojavieret ohramaina.
Siksipä saattaakin lapsi lohduttaa morsianta:
anna huolia hevosen, murehtia mustan ruunan, rautasuisen

surkutella, suuripäisen päivitellä, hevosell' on pää parempi,
pää parempi, luu lujempi, kaulan kaari kantavampi, koko
ruumis runsahampi.
Olemme siis nähneet kansan kuvakielen käyttämisellä

tarkoittaneen saada esityksen selvemmäksi, voimakkaammaksi ja
vaihtelevammaksi. Sen sijaan, että sanottaisiin asia aivan tavallisilla
sitä merkitsevillä sanoilla, käytetään toisia sanoja kuvaannollisesti
ilmaisemaan kysymyksessä olevaa seikkaa. Tavallisimpia kuvakielen
kaunistusseikkoja on esitettävän asian vertaaminen johonkin toiseen
samanlaiseen asiaan. Niin näemme esim. neidon asemaa
verrattavan kuninkaan asemaan linnassaan. Kun siis
jokapäiväisessä puheessa esim. sanottaisiin: mieli on surullinen, niin
kuvakielessä taas etsitään joku vertaus, musta väri tai syksy-yö ja
sanotaan: kannan mustoa murettu, syäntä syen näköistä; sydämeni
on kuin syksyinen yö synkkä j.n.e. Tai kun suorasanaisessa
esityksessä kerrottaisiin, miten mies on aikaisin aamulla
metsästämässä, niin runollisessa kuvakielessä etsitään kauniimpaa
ilmaisutapaa, muistutetaan, kuten näemme, aikaisesta
aamukasteesta, joka ikäänkuin pesee kasvot, metsän oksista, jotka
sukivat pään ja harjaavat vaatteet.
Toisinaan taasen kuvakieli katsoo kauniimmaksi kutsua jotakin

esinettä sen jonkun osan nimellä tai sen aineen nimellä, josta se on
tehty. Niin näimme lehmää kutsuttavan sarven kantajaksi tai utaren
tuojaksi. Sitä huntua taasen, joka naimisissa olevan naisen erotti
naimattomasta tytöstä, sanotaan vain pellavaksi tai palttinaksi.
Erittäin huomauttaisin säkeistä, joissa kuvataan apen ja anopin
tapaa kohdella miniätään. Miniähän saa kuulla: »apen luista
leukaluuta, anopin kivistä kieltä», jossa siis puheen tylyyttä,
kovuutta, verrataan luuhun, kiveen ja itse puhumista ilmaisevat
leukaluu ja kieli, s.o. puhumisen apuelimet.
Se seikka, mikä kuvakielelle aina antaa kaikkein omituisimman ja

viehättävimmän leimansa on kaikki personoiva s.o. kaikki
havaittavasti olemassaolevaksi, vieläpä eläväksikin tekeminen.
Eläimet, kasvit, koko luonto, ihmisominaisuudet, tunteet, ilot, surut,
kaikki nähdään elollisesti olevana ja toimivana. Niinpä surut
kuvitellaan voitavan siirtää toiselle, hevonen esim. ne muka
paremmin kantaa, koska se on voimakkaampi. Toisinaan taasen
surut kuvitellaan aineellisesti oleviksi, todellisesti raskaiksi, niin että
hevosenkin on niitä raskasta reessä vetää. Tuo naineen naisen
merkki, huntu, taasen kuvataan siksi välikappaleeksi, joka muka tuo
naiselle huolia ja suruja:
kunis huiskit hunnutoinna, sinis huiskit huoletoinna, kunis

liikuit liinatoinna, liikuit liioitta suruitta, äsken huntu huolta
tuopi, palttina pahoa mieltä, liina liikoja suruja, pellava
perättömiä.
Yhtä sattuvasti runo asettaa hevosen ja reen osoittamaan sitä

odottavaa jännitystä, jota kaikki tuntevat morsiamen lähtöhetkenä:
oro suitsia purevi, reki neittä vuottelevi.
Kuvakieli on olemassaolevan eläväksi tekemistä, sellaista eläväksi

tekemistä, joka vain luontoa lähellä olevalle ihmiselle on mahdollista.
Mekin nautimme kuvakielestä, mutta emme siten kuin luonnon
ihminen. Me ihailemme kuvakieltä kuin valmista taideteosta, mutta
me emme voi tuntea sitä välitöntä ihastusta, minkä tuntee
taideteoksen luoja, kuvakielen synnyttäjä. Kasvaneina kehittyneessä
yhteiskunnassa, usein vääriin suuntiin menevän sivistyksen
ympäröiminä me voimme ainoastaan kaihoten katsoa sen karkeata
korpea raivanneen kansan puoleen, joka ankaran elämän alla on
säilyttänyt niin eloisan, luonnonvaikutuksille, kaikelle luonnon
kauniille ja syville ihmistunteille niin alttiin sielun.
Puhuimme alussa kansanrunoutemme suuresta merkityksestä

suomalaiselle sivistykselle ja näimmekin, että jos
kuvaamataiteestamme, musiikistamme ja kirjallisuudestamme
lohkaistaisiin pois se, mikä niissä on kansanrunon pohjalla
syntynyttä, niin suomalaiseen sivistykseen muodostuisi ammottava
aukko. Mutta kansanrunoudellamme ja etupäässä juuri
Kalevalallamme on sellaisenaankin ollut suuri merkitys koko
suomalaiselle kansalle. Sen kautta meidän kansamme on
ensimäisen kerran pysyväisesti vetänyt puoleensa ulkomaittenkin
huomion. Ja kotimaassakin oli Kalevalan ilmestyminen omiaan
synnyttämään Suomen suomalaisessa kansassa itseluottamusta,
jota se tarvitsi noustakseen omintakeiseen elämään. Ja Snellmanin
taistelulle suomalaisen kansallisuuden oikeuksien puolesta oli
kansanrunoudessamme varma pohja. Siinähän oli todistus sen
heimon henkisistä lahjoista, jolle oikeuksia vaadittiin. Oli siis takeet,
että tämä heimo ja tämä kieli myös ansaitsi sen aseman, mikä sille
tahdottiin.
Katsommepa siis kansanrunouttamme miltä puolen tahansa, me

näemme sen aina olevan mukana suomalaisen kansan henkisissä
riennoissa. Ei siis ole aiheeton se yhä lisääntyvä kiintymys, millä se
meitä puoleensa vetää, eikä se huomio, minkä se osakseen saa.
KALEVALAISTEN KOTIELÄMÄÄ
Esittänyt Elsa Hästesko
Laajassa pirtissä vallitsee sankka pimeys. Kaikki nukkuvat. Mutta

kohta jo kohoaa nuorimman miniän pää vuoteelta ja kuulostaa. Sillä
raskaan unenkin painostaessa hän muistaa:
konsa kukko kerran lauloi, viel' ei toista virkkanunna, silloin

nuorten nousuaika, vanhojen lepuuaika.
Kun ei mitään kuulu, painuu pää takaisin hurstia vastaan. Hetken

kuluttua kapsahtaa nuorin miniä ylös uudelleen. Hän kuulostaa,
ihmettelee. Hän lähtee ulos katsomaan, jokohan Otavalla on
sarvet suorahan suvehen, pursto perin pohjaisehen.
Silloin huomaa hän, että on aika jo kiireesti
nousta luota nuoren sulhon, saa'a viereltä verevän, saa'a

tulta tuhkasista, valkeata vakkasesta, tuli puikkohon puhua
lienosti levittämättä.
Nuorikko panee sukkelasti hameensa nauhat kiinni, pyyhkäisee
kasvoiltaan pois tukkansa ja alkaa puhaltaa tulta päreeseen hiilistä.
Mutta tuli ei ota syttyäkseen. Lienevät hiilet tulleet huonosti
kätketyiksi eilisiltana, vai mikä niillä. Kylläpäs ne muulloin päreen
tuleen tupsauttivat. Ei auta muu kuin mennä kaivelemaan miesten
taskuista
— piitä pikkaraisen tauloa taki vähäisen.
Tuluksilla nuorikko »iskee tulta tuikahuttaa», ja kohta roihuaa päre

pihdissä.
Jo on aika muuta nuorempaa väkeä herätellä, sillä
suur' on läävä läänittävä, karja suuri katsottava.
Hiljaa supatellen ja virsuja jalkaan työnnellen siitä läävään

lähdetään. Pitkän yökauden ovat lehmät, hevoset ja lampaat
odotelleet
heinän hienon heittäjäistä, apilan ojentajaista,
ja siksipä oven avautuessa tulijoita tervehtääkin nälkäinen

ammunta ja hirnunta. Sakea höyry tunkeutuu läävästä ulos. Läävä
on niin matala, että isommat ihmiset saavat melkein kyyryllään
heitellä lampaille tupposia ja kantaa sioille purtiloita.
Sill'aikaa kuin toiset nuoret naiset olivat läävässä, niin
— piika pikkarainen, vaimo valkeanverinen, pesi siitä pitkät

pöyät, laajat lattiat lakaisi, vastasella varpaisella, luutasella
lehtisellä; ammueli rikkasensa vaskisehen vakkasehen.
Ja koska häntä oli varoitettu tunkiota talon lähelle tekemästä, niin
hän
vei ne ulos usta myöten, perimmäisen pellon päähän,

pellolle pihoa myöten, alimmaisen aian suuhun.
Läävästä palaava naisväki löytää siis siivotun tuvan ja muut

aikuiset ylhäällä. Pari lastakin on herännyt. He kärhentelevät
paitasillaan vanhan emännän ympärillä pyydellen:
anna leipeä kätehen, vuole voita leivän päälle!
Miehet kaivelevat kirveitään ja puukkojaan ruvetakseen

puhdetöihin. Naisväestä taas useimmat liikkuvat joko
suuruspuuhissa tai lastensa tarpeita tyydytellen. Toiset korjailevat
vaatteita tai kehräävät.
Nuorin miniä jää vielä suuruksen syötyä oluthaarikoita,

piimätuoppeja ja puuvateja keräämään — höyrysihän hänellä jo
kuuma vesi puukaukalossa ja olihan astiain pesua varten hiekat ja
huosiamet varattuna, — kun jo muut olivat muille töille lähteneet.
Taikinanpanopuuhissaan
anoppi aitasta tulevi jauhovakka kainalossa.
Hänellä se päähuoli elannosta on:
pere suuri syötettävä, murkinainen suorittava, leipä paksu

leivottava, taikina taputettava.
Miniät ja tyttäret taasen ovat saaneet työkseen, mikä ohran

survomisen huhmaressa, mikä hurstien huuhtelemisen, sotkujen
sotkemisen, kenelle taas on määrätty:
iltasaunan saapuessa veet vetele, vastat kanna, hauo
vastat valmihiksi saunahan savuttomahan.
Mutta kaikkein raskaimmassa työssä ovensuussa on
tuo orja alinomainen, rahan pantu palkkalainen,
sillä hänellä on
paasi paksu jauhettava, jauhot hienot seulottavat.
Ja liian sen saa hän tuntea:
paasi paksu, jauhot hienot, jauhaja vähäväkinen.
Raskaat käsinkivet pyörivät hitaasti ympäri, yhä vain ympäri. Orja

vääntää voimiensa takaa, ja kuitenkin singahtaa tuon tuostakin
talonväen suusta moittiva sana hitaudesta. Apea mieli painuu
vieläkin apeammaksi. Siksipä talonväen huomaamatta, melkein
orjan itsensäkin huomaamatta luistaa hiljainen laulu huulilta:
monipa minulla onpi, usia olettelevi virkkaja vihaisen äänen,

äänen tuiman tuikuttaja; ei ole minulla monta, tieä en raukka
yhtäkänä suin sulin puhelijata, kiukahalle käskijätä, uunille
uhittajata tuppurista tultuani, satehesta saatuani, kylmästä
kyhättyäni. Turkin helma tuppurissa, viitan helmat viehkurissa,
hallassa hamehen helmat.
(Kanteletar.)
Mutta kuuluupa tuvan toisesta nurkasta toivorikkaampi laulu. Eräs

miniöistä siellä lastaan kehdossa tuudittelee:
Tuuvin, tuuvin poikaani, vaapotan vakaistani tuikseni
tuulisäällä, varakseni vastasäällä.
Tuuli tuuti poioistani, tuuti miestä poiastani, kyntäjätä,

kylväjätä, varsan viejeä vaolle, mustan ruunan mullokselle!
(K:tar.)
Äiti kumartuu katsomaan, joko unen verho alkaa peittää

kirkkaita silmiä. Ne vain lämpimästi hymyilevät huomatessaan
äidin. Äiti alkaa uuden laulun:
Tuuti lasta, tuuti pientä, tuuti lasta nukkumahan! Laulan

lasta nukkumahan, uuvutan unen rekehen; käy unonen
kätkemähän, poik' unosen ottamahan, kultaisehen korjahasi,
hopeaisehen rekehen! Sitten saatua rekehen, kopattua
korjahasi ajele tinaista tietä, vaskitannerta tasaista; vieös
tuonne vienoistani, kuletellos kullaistani harjulle hopiavuoren,
kultavuoren kukkulalle, hopiaisehen salohon, kultaisehen
koivikkohon, kussa käet kullan kukkui, lauleli hopialinnut.
(K:r.)
Jo huomaa äiti pienen luomen painuvan silmän suojaksi. Äidin

sydämessä värähtää. Hän alottaa hellävaroen kauneimman
laulunsa:
Tuuti tuuti tummaistani, tummaisessa tuutusessa,

tummaisella tuutijalla, tuvan tummaisen sisässä…
(K:r.)
Ja laulaessaan unelmoi äiti poikansa tulevaisuudesta
kullanhohtoisia unelmoita. Sillä olihan äiti jo pojan syntymästä asti
toivonut hänestä
laaullista laulajata, kunnollista kukkujata, kaunista

karehtijata.
Sitä varten oli äiti taikoen pessyt pojan
kolmasti kesäisnä yönä, yheksästi syksy-yönä
ja pestessään manannut
joka tielle tietäjäksi, joka maalle malttajaksi.
Miehet alkavat palailla ulkotöiltään. Silloin on nuorikon kiireesti
vieminen vesiropehet, käsipyyhe kantaminen,
että miehet saavat puhdistautua ruualle käydessään. Talkkuna

höyryää pöydässä hyvän viljavuuden ja emäntien hyväntuulen
merkkinä, piimä on parahiksi hapanta, mielet virkeitä. Mutta vanha
isäntä, joka on ollut saunassa rannalla nuottaa korjaamassa,
muistelee, ett'ei kaikilla ole näin hyvin, moni parast'aikaa
murkinaleiväkseen
lemettisen leikkoavi, olkisen ojentelevi, petäjäisen

peiputtavi.
Nuoremmat miehet tuskin toisten puutteeseen kiinnittävät

huomiota. He vain puhuvat töistään. Kenellä on ollut
kirves tylsä tahkottava,

kellä taasen
pölkky paksu leikattava, pino suuri pilkottava,
tai
halko hieno latjattava;
jokunen oli ollut metsässä halkopuita vetämässä. Vilkkaimmin

kaikista puhuu talon nuorin poika,
hivus keltainen korea, kengän kanto kaunokainen.
Hänessä on sepän vikaa, ja sepät ovat harvinaisia ja suvulle

kunniaksi, sen tietää koko perhe. Hän kehoittelee veljiään karhun
kaadantaan. Sitä varten hän on juuri saanut valmiiksi keihäänsä,
jossa
heponen selalla seisoi, varsa vaapui lappealla, susi ulvoi

suoverolla, karhu karjui naulan tiessä.
Vaimoväki, joka istuu alapäässä pöytää, kuuntelee tarkkaan

miesten puheita ja supattelee hiljaa keskenään. Vanha emäntä
kuitenkin vähän kovemmalla äänellä huomauttaa, että olisi riihelle
lähdettävä huomisaamuna.
Päivällislevot levättyä pimenee jo ilta ja on ruvettava puhdetöille.

Uusia päreitä pannaan pihtiin. Työreet ja kyläreet vedetään esiin.
Samoin pienemmät käsityöt, oluthaarikat, kirvesvarret, saavien
vanteet.
Naisista taas mikä kangaspuihin istuu, mikä värttinän ottaa. Nuoret
tytöt, jotka ovat vanhan kosijan tullessa kehuneet
ottavansa kullat kulmiltahan, hopeat hivuksiltahan, sinisilkit
silmiltähän, punalangat päänsä päältä,
kaivavat kirstuistansa koristeompeluksensa juhlapukuihinsa.

Muuan heistä menee veljeään seppoa pyytelemään uuden solen
tekoon. Työn touhussa alkaa puhekin luistaa. Kyläreen tekijä,
lähinnä nuorin pojista, kertoo saaninsa valmihiksi saatuaan
ottavansa
— olkisen orihin, hernevartisen hevosen
ja lähtevänsä kosiin. Siitä on tuleva uljas matka. Ajoneuvot pitää

olla komeat, sillä hän on laittava
— kuusi kukkulaista, seitsemän siniotusta vempelille

riekumahan, rahkehille raukumahan, jotta kannot katsahtaisi,
impyet ihasteleisi.
Ja lähtiessään sanoisi hän orjalleen:
kanna tuohon karhun talja päällä istuellakseni, tuopa toinen

turskan talja kirjokorjan katteheksi.
Siitä sitten sanat sukeavat huomautukset säestävät melkein

jokaisen puhetta. Vihdoin ruvetaan arvuuttelemaan. Toinen
koetetaan saada ahtaalle. Jos hän arvaa kaikki vanhat arvuutukset,
keksitään uusia. Ja kun toinen ei arvaa, silloin hänelle yleisen
naurunremahduksen aikana luetaan:
hyi, hyi, Hymylään, Hymylän koirat haukkumaan. »Käykää

lapset katsomahan, mitä Halli haukkuu, luppakorva
lupsostaa.» »Tuota Halli haukkuu…»
(K:r.)
Mutta kesken nuorien ilon alkaa takan luona omissa mietteissään

oleva vanha isäntä laulaa:
Mieleni minun tekevi, aivoni ajattelevi, lähteäni laulamahan,

saa'ani sanelemahan, sukuvirttä suoltamahan. lajivirttä
laulamahan.
Lapsuudenmuistoihinsa vaipuneena hän jatkaa:
niit' ennen isoni lauloi kirvesvartta vuollessansa, niitä äitini

opetti väätessänsä värttinätä minun lasna lattialla eessä
polven pyöriessä, maitopartana pahaisna, piimäsuuna
pikkaraisna.
Sitten kertoo vanhus ääni värähdellen, missä on itse uusia lauluja

sepitellyt:
Lasna karjan laitumilla, metisillä mättähillä, kultaisilla

kunnahilla, mustan Muurikin jälessä. Kimmon kirjavan keralla
vilu mulle virttä virkkoi, säe saatteli runoja, virttä toista tuulet
toivat, meren aaltoset ajoivat, linnut liitteli sanoja, puien latvat
lausehia….
Hiljaa ovat nuoret, kaikki hartaina kuuntelevat. Lämpimänä,

kaihoisana lekkaa tuli takassa, päreet ovat huomaamatta palaneet
pitkälle karstalle, hiljaa pyörivät värttinät, ääneti vilahtelevat
viipsinpuut.
Mutta ulkona pakkasessa

ebook download (eBook PDF) Personal Finance 3rd Canadian Edition all chapter

Uploaded by

Copyright:

Available Formats

You might also like

ebook download (eBook PDF) Personal Finance 3rd Canadian Edition all chapter

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ebook download (eBook PDF) Personal Finance 3rd Canadian Edition all chapter

Uploaded by

Copyright:

Available Formats

(eBook PDF) Personal Finance 3rd

(Original PDF) Personal Finance, 4th Canadian Edition

(eBook PDF) Personal Finance 6th Canadian Edition by

(eBook PDF) Personal Finance 7th Canadian Edition by

Personal Finance 13th Edition (eBook PDF)

(eBook PDF) Corporate Finance, 3rd Canadian Edition

(eBook PDF) Personal Finance 2nd ed. 2011 Edition

Personal Finance 14th Edition Jack Kapoor - eBook PDF

(eBook PDF) Personal Finance 6th Edition by Jeff Madura

Factors That Affect Cash Flows .................... 58 Step 2: Subtract Deductions........................ 89

Creating a Budget ......................................... 59 Step 3: Calculate Taxable Income ................ 91

Chapter 4 Appendix 4A Comprehensive

Banking Services Offered by Types of Credit Cards ................................................... 157

Selecting a Financial Institution.................138 Personal Loans .............................................164

Summary ......................................................143 Debt Management....................................... 176

Mini-Case 1: Credit Card Use ....................................... 190

Characteristics of a Variable-Rate If You Are In an Auto Accident .................... 238

Umbrella Personal Liability Policy............. 245 Challenge Questions .....................................................276

Psychology of Personal Finance:

Segregated Funds ....................................... 381 Summary ..................................................... 420

Key Components of a Will .......................... 430 Psychology of Personal Finance:

PART 6 Appendix B Your Career............... 473

Integrating the Components ..................... 454

Revised Chapter Introduction Cases:

In contrast, Brittany’s best friend, Manny

M03_MADU5575_03_SE_C03.indd 55 05/01/15 4:50 PM

New Free Apps for FREE APPS for

that they can download to their smart- savings are needed.

phones, for free, that apply to many of the

PSYCHOLOGY OF PERSONAL FINANCE: Your Taxes

is also an accompanying section that tests stu-

New end-of-chapter Mini-Cases:

M13_MADU5575_03_SE_C13.indd 385 23/12/14 2:15 PM

More visual exhibits:

Improved Ethical Dilemmas:

Key Chapter Updates

TRIED AND TRUE LEARNING TOOLS

dents through the material. of Personal Finance

Marginal Glossary mortgage companies

they are first discussed. investment dealers

in realistic scenarios throughout

Review Questions REVIEW QUESTIONS

FINANCIAL PLANNING PROBLEMS

End-of-Chapter Study Guide

Build Your Own Financial Plan—Personal Finance’s

Financial Planning Online Exercises—At the end

M03_MADU5575_03_SE_C03.indd 65 28/11/14 9:06 AM

FINANCIAL PLANNING PROBLEMS

M09_MADU5575_03_SE_C09.indd 275 12/12/14 3:55 PM

Build a financial plan for the

Appendix A provides a number of projects for students to complete

Project • Mortgage Case Project

Assessing Your Credit

Career Planning Project

Z01_MADU5575_03_SE_APPA.indd 465 22/12/14 4:42 PM

Appendix B provides direction on determining and managing your career.

Determining Your Career Path

Factors That May Affect Your Career Path

Sources of Information That Can Help You to