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Lifestyle Conditions

Lifestyle Conditions. Lifestyle Conditions. Lifestyle conditions influence financial planning during each stage of life. Many lifestyle conditions lead to financial and economic challenges. AGE. a set of consecutive ages that tend to have similar incomes, needs, and expenses. Dependents.

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Lifestyle Conditions

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  1. Lifestyle Conditions

  2. Lifestyle Conditions • Lifestyle conditions influence financial planning during each stage of life. • Many lifestyle conditions lead to financial and economic challenges.

  3. AGE • a set of consecutive ages that tend to have similar incomes, needs, and expenses

  4. Dependents • number of persons relying on a person for financial support • children, spouse, parents, other relatives

  5. Economic outlook • inflation/recession/depression, unemployment rate, interest rates

  6. Education level • less than high school, high school diploma, associate’s degree, bachelor’s degree, master’s degree, doctorate

  7. Employment status • employed, self-employed, unemployed; part-time, full-time

  8. Health condition • chronic or debilitating illnesses, injuries, disabilities

  9. Marital status • single, married, divorced, widowed

  10. Financial Life Cycle • The typical progression of individuals/families through stages of life and ways in which they • use money and accumulate wealth during these stages is depicted in the Financial Life Cycle. • First learn to protect wealth, then accumulate it, then prepare to pass it on • Decisions at each stage affect options at the next stage

  11. Individual Life Cycle • Individuals move through a series of stages called the Individual Life Cycle as they move from adolescence into adulthood and then through the various stages of adult life. • Each of these growth stages leads to different financial opportunities and challenges.

  12. Family Life Cycle • Families also move through a series of stages called the Family Life Cycle. • Families tend to have different needs, wants, values, and priorities during the various stages, as well as different resources. • Stages of the family tend to parallel stages in the Individual Life Cycle.

  13. Cont. • Incomes, needs, and expenses for individuals and families vary at each stage of the life cycle. • Incomes tend to vary with age and level of education and work experience. • Needs arise because of activities and events that occur at different stages of life. • Expenses tend to vary throughout life as life cycle needs produce financial needs.

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