Transcript Life Cycle of Financial Planning

Life Cycle of
Financial
Planning
Take Charge of Your
Finances
Question of the Day
 True

or False:
“Everyone follows the same financial plan.”
Pair/Share
 Talk
with a partner next to you about the
previous statement.
 Listen
to their thoughts and be prepared
to share what they had to say.
Statement: FALSE!
 People
don’t have the same life
experiences, major life events, or financial
plans.
 Everyone’s
 Financial
plan will vary.
Planning is a tool that will help
you achieve financial success based on
the development and implementation of
your own financial goals.
Various Lifestyle Conditions
 Marital
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
Status
Single
Married
Divorced
Widowed
Lifestyle Conditions
 Employment

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
Status
Employed
Unemployed
Facing
Unemployment
Lifestyle Conditions
 Age

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High School
Young Adult
Adult with or without Children
Working Parent or Adult
Midlife
Pre-Retirement
Retired
Lifestyle Conditions
 Number

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
of Dependents
Children
Spouse
Parents
Other family members
Lifestyle Conditions
 Economic
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Outlook
Interest Rates
Credit Score
Debt Level
Employment Level
Salary Rates
Lifestyle
Conditions
 Education


Education level of
family members
Tuition needs for
children
Lifestyle Conditions
 Health
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Status
Unpredictable Issues
Dental Work
Doctor Visits
Mishaps
Etc.
Lifestyle Conditions
 For
example:

A 19 year-old single mother’s financial plan
is much different than a 19 year-old student
without a child.

All people have a different plan.
Stage 1 – Basic Wealth
Protection
 The
beginning of the curve is where a
person “quits giving money to others” and
is the family formation stage for many
people.
 Begin
to earn money, continue
education, start a job or career.
 Focus
on gaining wealth and earnings.
Stage 2 – Wealth
Accumulation
 The
second stage is where a person is
“giving the money to self.”
 Household
has reached peak earnings, is
accumulating wealth, and approaching
retirement.
Stage 3 – Wealth Distribution
 The
third stage involves “giving the money
to your chosen ones.”
 Also
known as retirement, where
consumption of wealth occurs and
involves estate planning.
Pyramid Discussion
 How
important is building a solid
foundation?
 What
does building this foundation allow
a person to do?
 Do
early decisions affect future options?
 Now:
Let’s talk about budgets…
Activity Time
 You
will be working in small groups to
brainstorm various activities and events
that require financial planning that occur
during the given age group.
 Each
group will have a separate age
group to work with.
Break into groups!
 With
your group, write down your ideas for
the various events and activities that
occur for your specific age group.
Discussion

Let’s see what you came up with!

13-17
18-24
25-34
35-44
45-54
55-64
65+
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Discussion

What financial plan goals listed on the board could
apply to you?

What about any that apply to other students in
general?

What are some of your personal values and goals
which will affect your financial plans?

Why is it important to start financial plans now?

Resources to help you get there:

Wages, summer jobs, investments, savings, hobbies, skills,
extra-curricular activities, gifts, scholarships.
“Everyone has the same
financial plan”
 Why
is this statement incorrect?