1. Life Cycle of Financial Planning
“Take Change of Your Finances”

2. “Every follows the same financial plan.”
Is this statement True or False
Why or Why not?

3. “Not True!” Everyone’s financial planning is different
Financial planning is a tool used to achieve financial success based upon the development and implementation If financial goals.

4. Examples of lifestyle conditions.
Marital statues – single, married, divorced
Employment status – employed, unemployment
Age
Number of dependents – children, spouse
Economic outlook – interest rates, employment level, salary rates
Education – education level of family members, tuition needs
Health status

5. An Individual's Financial Life Cycle
Stage 1: Basic Wealth Protection
Start family, beginning earning money
Stage 2: Wealth Accumulation
Peak earning years, accumulating wealth, getting ready for retirement
Stage 3: Wealth Distribution
Retirement, consumption of wealth, estate planning
Single * Married * Start and Raising Family * Approaching * Retirement
Retirement
Years
Stage 3
Stage 2
Stage 1:

6. Personal Financial Management Pyramid
Basic Wealth Protection – quit giving to others
Cash management
Credit and Debt Management
Risk and Tax Management
Wealth Accumulation – give it to others
Building Financial Security
Wealth Distribution – give it to your chosen ones
Estate planning

7. Building a Solid Financial Foundation Build wealth to move up.
Decisions at one level affect the other levels
On the way up, financial plan becomes more complex

8. Activity Time Divide into seven groups based on stages
Brainstorm activities and events which require financial planning for that stage and age group
Write them on the paper
Share response

9. Ages 13 - 17 Developing a plan for eventual independence
Preparing for career
Evaluating future financial needs and resources
Exploring financial systems - banks, etc.
Developing a personal system of record keeping

10. Ages 18 - 24 Establishing a household Training for a career
Gaining financial independence
Determining insurance needs
Establishing credit
Establishing savings
Creating a budget
Developing a personal financial identity
Developing a record keeping system
Developing a personal financial system

11. Ages 25 - 34 Child-bearing Child-raising Education funds started
Expand career goals
Manage increased need for credit
Training expenses
Additional insurance needs
Draw up will
Maximize financial management by all members of household

12. Ages 35 - 44 Upgrade career training Build education finds
Head-of-household protection needs
Need for greater income due to expanding needs
Establish retirement goals

13. Ages 45 - 54 Higher education for children investments
Update retirement plans
Estate plans

14. Ages 55 - 64 Consolidate assets Future security
Re-evaluate property transfer (estate)
Investigate retirement part-time income or volunteer work
Evaluate expenses for retirement and current housing
Meet responsibilities of ageing parents

15. Ages 65 - over
Re-evaluate and adjust living conditions and spending as related to health and income
Adjust insurance programs for increasing risks
Acquire assistance in management of personal and financial affairs
Finalize estate plan
Finalize will or letter of last instruction

16. Scenario – 4 financial goals & list resource
Sally Smith is a 16 year-old high school junior. She values her close family and dreams of having a family of her own someday. She is also very focused on having a successful career in the future.
Remember the 5 elements of a financial goal

17. Discussion How does this scenario compare to you?
What financial plan goals are could apply to you?
What other financial plan goals are applicable to HS students?
Name some personal values and goal which affect HS student’s financial plans.
List resources.
Why is it important for you to start financial planning now?

18. Personal Life Cycle of Financial Planning
Complete the worksheet
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