[FHCE 3200] - Final Exam Guide - Ultimate 42 pages long Study Guide!

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3200
• Professor: Goren

Document Summary

External: financial capacity, cash in hand, assets. Internal: financial literacy, goals, self-efficacy, biases, personality. We are not bound by our default: marsh(cid:373)allo(cid:449) = (cid:862)(cid:271)ri(cid:272)k(cid:863) => fo, how can we become more fo, practice self-regulation, set and prioritize goals, fo(cid:272)us o(cid:374) (cid:862)i(cid:374)(cid:448)esti(cid:374)g i(cid:374) (cid:455)ourself(cid:863, clearly articulate needs vs. wants. Slow (essentially) all thinking is on this continuum: o(cid:373)e people fa(cid:448)or o(cid:374)e or other , o(cid:373)e situatio(cid:374)s fa(cid:448)or o(cid:374)e or a(cid:374)other . What happe(cid:374)s (cid:449)he(cid:374) (cid:455)ou"(cid:448)e got : too many choices, not clear which choices lead to the best outcomes, too little information. Peanut butter: you must buy peanut butter for your house. Credit card: you (cid:373)ust sele(cid:272)t (cid:455)our first (cid:272)redit (cid:272)ard. Status quo bias: preference for how things are, resistance to changing things, fear of making the wrong decision. Loss aversion: people in general are fearful of loss. Investors with 20 year investment time horizon often tend to focus on short term losses instead of focusing on long term gains.