Management and Organizational Studies 2277A/B Chapter Notes - Chapter 1: Certified Financial Planner, Financial Planner, Personal Finance

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

Document Summary

Personal finance (personal financial planning): process of planning your spending, financing, and investing activities while taking into account uncontrollable events in order to. Personal financial plan: specifies your financial goals describes the spending, financing, and optimize your financial situation investing activities intended to achieve these goals and risk management strategies to protect against uncontrollable events such as death/disability. Excessive debt levels affect your ability to achieve important financial goals. Per capita debt represents the amount of debt each canadian would have of average debt. Opportunity cost: represents what you give up as a result of a decision. Informed financial decisions increase the amount of money you accumulate over time and give you more flexibility in purchasing what you want in the future. Savings in an emergency fund (short-term goal) will learn less interest than in a retirement plan (long-term goal) Saving too much for short term needs limits your opportunity for long term growth.