31
Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved.
solution manual for Personal Finance 7th Canadian
Edition by Jack Kapoor
Full download link：https://bit.ly/3zJGxcI
SECTION B
CHAPTER TEACHING MATERIALS
1- 1
Copyright © 2018 McGraw-Hill Education Ltd. All Rights Reserved.
Instructor’s Manual for Kapoor et al. Personal Finance 7CE.
1
FINANCIAL PLANNING: AN INTRODUCTION
CHAPTER OVERVIEW
This chapter provides the foundation for Personal Finance and the study of financial planning. The
chapter starts with a discussion of an overview of the financial planning process. This is followed by
coverage of the person’s life situation, personal values, and economic factors that make up the financial
planning environment. Next, the opportunity costs, or trade-offs, of decisions are considered in relation to
personal and financial resources. Subsequently, the main components of financial planning (obtaining,
planning, saving, borrowing, spending, managing risk, investing, and retirement and estate planning) are
discussed. Finally, strategies for creating and using a financial plan are introduced.
LEARNING OBJECTIVES CHAPTER SUMMARY
After studying this chapter, students will be able to:
Obj. 1 Analyze the process for
making personal financial
decisions.
Personal financial planning involves the following process: (1)
determine your current financial situation; (2) develop financial
goals; (3) identify alternative courses of action; (4) evaluate
alternatives; (5) create and implement a financial action plan; and
(6) re-evaluate and revise the financial plan.
Obj. 2 Develop personal
financial goals.
Financial goals should (1) be realistic; (2) be stated in specific,
measurable terms; (3) have a time frame; (4) indicate the type of
action to be taken.
Obj. 3 Assess personal and
economic factors that
influence personal
financial planning.
Financial decisions are affected by a person’s life situation
(income, age, household size, health), personal values, and
economic factors (prices, interest rates, and employment
opportunities).
Obj. 4 Determine personal and
financial opportunity costs
associated with personal
financial decisions.
Financial opportunity costs are based on the time value of money.
Future value and present value calculations enable you to measure
the increased value (or lost interest) that results from a saving,
investing, borrowing, or purchasing decision.
Obj. 5 Identify strategies for
achieving personal
financial goals for
different life situation.
Successful financial planning requires specific goals combined
with spending, savings, investing, and borrowing strategies based
on your personal situation and various social and economic
factors.
1- 2
Copyright © 2018 McGraw-Hill Education Ltd. All Rights Reserved.
Instructor’s Manual for Kapoor et al. Personal Finance 7CE.
INTRODUCTORY ACTIVITIES
• Ask students to comment on the opening case for the chapter.
• Point out the learning objectives in an effort to highlight the key points in the chapter.
• Ask students to provide examples of social and economic factors that have increased the importance
of personal financial planning today.
• Have students answer these three questions as individuals or in small discussion groups:
1. What do you currently know about personal financial planning?
2. What questions do you need answers for about personal finance?
3. How and where might you obtain answers to the questions you have about personal finance?
CHAPTER 1 OUTLINE
I. The Financial Planning Process
Step 1: Determine Your Current Financial Situation
Step 2: Develop Financial Goals
Step 3: Identify Alternative Courses of Action
Step 4: Evaluate Alternatives
Step 5: Create and Implement a Financial Action Plan
Step 6: Re-evaluate and Revise Your Plan
II. Developing Personal Financial Goals
A. Factors that Influence Your Financial Goals
B. Life Situation
C. Goal-Setting Guidelines
III. The Influence of Economic Factors
A. Market Forces
B. Financial Institutions
C. Global Influences
D. Economic Conditions
IV. Time Value of Money
A. Interest Calculations
B. Future Value
C. Present Value
V. Achieving Financial Goals
A. Components of Personal Financial Planning
B. Developing a Flexible Financial Plan
C. Implementing Your Financial Plan
VI. Appendix 1A: Financial Planners and Other Financial Planning Information Sources
Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved.
solution manual for Personal Finance 7th Canadian
Edition by Jack Kapoor
Full download link：https://bit.ly/3zJGxcI
SECTION B
CHAPTER TEACHING MATERIALS
1- 1
Copyright © 2018 McGraw-Hill Education Ltd. All Rights Reserved.
Instructor’s Manual for Kapoor et al. Personal Finance 7CE.
1
FINANCIAL PLANNING: AN INTRODUCTION
CHAPTER OVERVIEW
This chapter provides the foundation for Personal Finance and the study of financial planning. The
chapter starts with a discussion of an overview of the financial planning process. This is followed by
coverage of the person’s life situation, personal values, and economic factors that make up the financial
planning environment. Next, the opportunity costs, or trade-offs, of decisions are considered in relation to
personal and financial resources. Subsequently, the main components of financial planning (obtaining,
planning, saving, borrowing, spending, managing risk, investing, and retirement and estate planning) are
discussed. Finally, strategies for creating and using a financial plan are introduced.
LEARNING OBJECTIVES CHAPTER SUMMARY
After studying this chapter, students will be able to:
Obj. 1 Analyze the process for
making personal financial
decisions.
Personal financial planning involves the following process: (1)
determine your current financial situation; (2) develop financial
goals; (3) identify alternative courses of action; (4) evaluate
alternatives; (5) create and implement a financial action plan; and
(6) re-evaluate and revise the financial plan.
Obj. 2 Develop personal
financial goals.
Financial goals should (1) be realistic; (2) be stated in specific,
measurable terms; (3) have a time frame; (4) indicate the type of
action to be taken.
Obj. 3 Assess personal and
economic factors that
influence personal
financial planning.
Financial decisions are affected by a person’s life situation
(income, age, household size, health), personal values, and
economic factors (prices, interest rates, and employment
opportunities).
Obj. 4 Determine personal and
financial opportunity costs
associated with personal
financial decisions.
Financial opportunity costs are based on the time value of money.
Future value and present value calculations enable you to measure
the increased value (or lost interest) that results from a saving,
investing, borrowing, or purchasing decision.
Obj. 5 Identify strategies for
achieving personal
financial goals for
different life situation.
Successful financial planning requires specific goals combined
with spending, savings, investing, and borrowing strategies based
on your personal situation and various social and economic
factors.
1- 2
Copyright © 2018 McGraw-Hill Education Ltd. All Rights Reserved.
Instructor’s Manual for Kapoor et al. Personal Finance 7CE.
INTRODUCTORY ACTIVITIES
• Ask students to comment on the opening case for the chapter.
• Point out the learning objectives in an effort to highlight the key points in the chapter.
• Ask students to provide examples of social and economic factors that have increased the importance
of personal financial planning today.
• Have students answer these three questions as individuals or in small discussion groups:
1. What do you currently know about personal financial planning?
2. What questions do you need answers for about personal finance?
3. How and where might you obtain answers to the questions you have about personal finance?
CHAPTER 1 OUTLINE
I. The Financial Planning Process
Step 1: Determine Your Current Financial Situation
Step 2: Develop Financial Goals
Step 3: Identify Alternative Courses of Action
Step 4: Evaluate Alternatives
Step 5: Create and Implement a Financial Action Plan
Step 6: Re-evaluate and Revise Your Plan
II. Developing Personal Financial Goals
A. Factors that Influence Your Financial Goals
B. Life Situation
C. Goal-Setting Guidelines
III. The Influence of Economic Factors
A. Market Forces
B. Financial Institutions
C. Global Influences
D. Economic Conditions
IV. Time Value of Money
A. Interest Calculations
B. Future Value
C. Present Value
V. Achieving Financial Goals
A. Components of Personal Financial Planning
B. Developing a Flexible Financial Plan
C. Implementing Your Financial Plan
VI. Appendix 1A: Financial Planners and Other Financial Planning Information Sources