Management and Organizational Studies 2277A/B Chapter Notes - Chapter 1: Personal Finance, Savings Account, Tax Avoidance

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

Document Summary

Chapter 1 : overview of a financial plan. Explain how you could benefit from personal financial planning. Identity the key components of a financial plan. Outline the steps involved in developing a financial plan: 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. People tend to rely too much on credit and have excessive debt. = excessive debt levels affect ability to achieve important financial goals. The personal savings rate has been decreasing for the past 30 years. The level of household debt relative to income has increased from 110. 1 percent to 166. 1 percent. The per capita debt of canadians has increased to ,995. Per capita debt : the amount of debt each individual in canada would have if total debt (consumer debt + mortgages) were spread equally across the population.