Management and Organizational Studies 2277A/B Lecture 1: Lecture-1-Chapter-123

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

How you benefit from an understanding of personal finance: Personal finance (personal financial planning): the process of planning your spending, financing, and investing activities, while taking into account uncontrollable events, such as death or disability, in order to optimize your financial situation over time. For each dollar of person income received in 1982, canadians saved 17 cents. (the personal savings rate in 2012 had decreased to 3. 3 cents per dollar of personal income received) According to a 2011 study, 51% of youth, defined as those between 17-20 years, carry debt. In addition, 25% of these youth have an outstanding credit card balance. An understanding of personal finance enables you to make informed decisions about your financial situation. Each of your spending decisions has an opportunity cost: what you give up as a result of a decision (you forgo alternative ways that you could have spent the money or forgo saving the money for a future purpose)