AHRM 2304 Lecture Notes - Lecture 1: Life Insurance, Deflation, Gross Domestic Product

• School: Virginia Tech
• Department: Apparel, Housing, and Resource Management
• Course: AHRM 2304
• Professor: Solis

Document Summary

What is it: cash/credit management, risk management (fraud, job loss, stock market, managing a business, life insurance, tax planning, investments, retirement planning, estate planning (death and funeral savings) Financial literacy: knowledge of facts, concepts, principles, and technological tools that are fundamental to being smart about money. Financial responsibility: accountability for your financial well-being; taking control of your finances. Credit cards: 1 in 3 households carry credit card debt from month to month. Budgeting and savings: 60% of consumers do not have a budget, about 1 in 4 (24%) are not paying their bills on time. Financial planning is an ongoing process it changes as your financial situation and position in life change. Based on monthly expenses; should have 3-6 months of those expenses in an emergency fund according to financial planners. Five basic steps to personal financial planning: evaluate your financial health. Create and use financial statements check your assets, liabilities, income throughout the year: define your financial goals.