INTRODUCTION TO

PERSONAL FINANCE

WHY DO WE NEED TO MANAGE OUR MONEY?

Today’s objective
Personal finance impacts whether or not people meet their
personal goals.
WHAT IS PERSONAL
FINANCE?
- A personal finance plan includes financial goals
and a budget, including spending on goods and
services, savings and investments, insurance
and philanthropy.
- More than budgeting, more than investing
- It is a thinking process; an on-going thinking
process
DECISIONS,
DECISIONS
- Your personal beliefs about money are major forces that
guide your spending decisions and goals.
- Personal finance is a roadmap in guiding you through
your financial life.
- You need to consider your career, salary, budget, savings
plan, retirement plan, and goals.

- It is never too early to start thinking about your personal

finance goals!!!
HOW DO I BEGIN?
- Think about a potential career and how you can obtain
that career
- Look at your current financial situation
- Develop financial goals
- Identify all of your options
- Evaluate alternatives
- Create and use a financial plan of actions
- Review, revise, review, and revise you plan (this happens
periodically)
DETERMINE YOUR
CURRENT FINANCIAL
SITUATION
1. Determine your current financial situation
Make a list of items that relate to your finances:
- savings/investment
- monthly incomes (job earnings, allowance, gifts, interest)
- Monthly expenses
- Debts
DEVELOP YOUR
FINANCIAL GOALS
2. Develop your financial goals.
Consider your attitude toward money.
Ask yourself the following:
-How do I determine if it is more important to spend money
now, or save it for the future?
-How do your personal values affect your financial decision?
IDENTIFY YOUR
OPTIONS
3. Identify your options
-Continue the same course of action
-Expand the current situation
-Change the current situation
-Start something new
EVALUATE YOUR
ALTERNATIVES
- Consider the risks and consequences of each decision
you make
- 1. Be aware of all sources of financial information
- 2. Evaluate consequences of choices, both good and bad.
- 3. Understand risks involved with choices
CREATE, REVIEW,
AND REVISE
Create and use your financial plan

Just do it!!!!!!
Review and revise your plan
- As we get older and our circumstances, our finances,
needs, and wants will change, therefore our financial plan
must be flexible as well.
WHAT INFLUENCES
YOUR GOALS?
- Our society
- Our culture
- Your emotions
- Financial resources
- Peer pressure (advertising for products, what you see
others buy)
- Scarcity (not enough resources to fulfill our needs)
- Wants and Needs
WHY PERSONAL FINANCE
GOALS ARE IMPORTANT?
- Good financial behavior reaps many benefits:
- Security
- Ability to achieve goals
- Less worry about finances
- If bad financial behavior occurs the following can happen:
- Bankruptcy
- Debt
- Job less
- Inability to pay bills