Personal Financial Planning Section 1 Financial Decisions and Goals
Often people with conflicting financial values and practices experience challenges in their business or personal relationships. How could such problems be minimized or prevented using what you have learned in this chapter? Answers will vary. Sample answer: Spouses who disagree about how much to spend on certain goods or activities may have frequent arguments. To reduce arguments, they need to communicate with each other before making decisions.
Personal Financial Planning Section 2 Opportunity Costs and Strategies
Explain the opportunity costs associated with personal financial decisions. Understand the time value of money. Identify eight strategies for achieving financial goals at different stages of life.
Personal Financial Planning Section 2 Opportunity Costs and Strategies
A common piece of financial advice is “Do not live beyond your means.” Explain the meaning of this statement. Do you think it is good advice? Why or why not? The statement means do not spend more than what you have. Students should say that it is good advice because one of the eight strategies discussed in the chapter is spending wisely.
