1. Introduction to Personal Finance.pdf
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This document provides an introduction to personal finance. It defines personal finance as the application of financial principles to the monetary decisions that individuals and families make. The document outlines the main principles of personal finance as prioritizing, assessment, and restraint. It also describes the main areas of personal finance as income, spending, saving, investing, and protection. Income refers to sources of cash inflow like salaries, bonuses, and dividends. Spending includes expenses like rent, food, and credit card payments. Saving is excess cash retained for the future, while investing purchases assets to generate returns. Protection guards against unforeseen events through insurance.
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1. Introduction to Personal Finance.pdf
- 1. 1 1 4 4 9 9 6 6 3 3 7 7 5 5 2 2 0 0 8 8 Introduction to Personal Finance Mrs. Katrina Marie M. Miranda, MBA Instructor, Elec. 1 CHAPTER 1
- 2. Today's Lesson Define Personal Finance Explain the Principles in Personal Finance Understand the main areas of Personal Finance Tip: Use links to go to a different page inside your presentation. Links work best for pages like this one! How: Highlight text, click on the link symbol on the toolbar, and select the page in your presentation that you want to connect.
- 3. Why do we have to study personal finance?
- 4. What is Finance? FINANCE itself concerns the flow of money from one place to another, and your personal finances concern your money and what you plan to do with is as it flows in and out of your possession.
- 5. What is Personal Finance? Essentially, then, PERSONAL FINANCE is the application of financial principles to the monetary decisions that you make either for your individual benefit or for that of your family.
- 6. Prioritizing Assessment Restraint Principles of Personal Finance 1 1 3 3 8 8 9 9 7 7 5 5 0 0 6 6 2 2
- 8. Income Income refers to a source of cash inflow that an individual receives and then uses to support themselves and their family. It is the starting point for our financial planning process. Common sources of income are: Salaries Bonuses Hourly wages Pensions Dividends
- 9. Spending Spending includes all types of expenses an individual incurs related to buying goods and services or anything that is consumable (i.e., not an investment). All spending falls into two categories: cash (paid for with cash on hand) and credit (paid for by borrowing money). The majority of most people’s income is allocated to spending.
- 10. Common sources of Spending Rent Mortgage payments Taxes Food Entertainment Travel Credit card payments
- 11. Saving It refers to excess cash that is retained for future investing or spending. If there is a surplus between what a person earns as income and what they spend, the difference can be directed towards savings or investments. Managing savings is a critical area of personal finance. Common forms of savings include: Physical cash Savings bank account Checking bank account Money market securities
- 12. Investing Investing relates to the purchase of assets that are expected to generate a rate of return, with the hope that over time the individual will receive back more money than they originally invested. Common forms of investing include: Stocks Bonds Mutual funds Real estate Private companies
- 13. Protection Personal protection refers to a wide range of products that can be used to guard against an unforeseen and adverse event. Common protection products include: Life insurance Health insurance Estate planning
- 14. Let's Try Share your Smart Financial Habits that you do in your daily lives and Explain in the class.
- 15. You did great. See you next time!