1. FINE 3000 – Personal Finance
Financial Decisions
FINE 3000 – Personal Finance

2. What Surprised You After College?
How much money it takes to live on your own
How hard it is to save money
How many financial decisions have to be made
How hard it is to pay bills
How little I knew about taxes

3. Major Financial Decisions
How much to save for emergencies
How much to save for retirement
How much I can afford to spend on a house
How much I can afford to spend on a car
Paying off student loans
Credit cards
Insurance decisions (life, auto, home, health)
Setting aside money to pay taxes

4. Setting Financial Goals
Goals should always be
Realistic
Measurable
Determined by your actions
Actionable
Goals can be
Changed over time
Critical or aspirational
Private or shared

5. Factors that Influence Financial Planning and Decision Making
Personal Values
Life-cycle Stage
Employment Situation / Career
Economic Environment

6. Three Key Questions for Every Financial Decision
How will this decision affect my present finances?
How will this decision affect my future finances?
What risk(s) will I be taking with this decision?

7. Additional Issues with Financial Decisions
Cash flow
Opportunity costs
Hidden costs
Timing (now vs. later)
Impact on others
Impact on my time

8. Case Study #1 – Paul Buys a Television
Paul has decided to buy a 72-inch, high-definition, state- of-the-art television. Use the internet to find the range of prices for this type of television. What do you think is a fair price, and how could you determine if you are getting a good deal?
Spending this amount of money on a television has an opportunity cost. With this amount of money available to spend, what would your priorities be?

9. Case Study#2 – Buy Now, Pay Later
How much does the use of Rebecca’s credit card add to the price of every single cup of coffee? Do you think she is paying a fair price for her coffee and muffin?
Which do you think has a bigger impact on Rebecca’s long-term wealth: her use of a credit card or her decision to buy a coffee and a muffin each day versus making it at home?

10. Case Study #3 – Sam has an Accident
Sam tells you his story in the hope that you will help him make a good plan for paying off his $5,000 in obligations in the most cost-efficient manner. What suggestions would you make to him?
In addition to helping Sam with his current predicament, suggest some strategies for the future that would make dealing with such an emergency easier.