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Navigating Personal Finance: Post-College Insights

Explore the surprises, major decisions, goal setting, factors, and key questions in personal finance, with case studies and strategies for financial planning.

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Navigating Personal Finance: Post-College Insights

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  1. Financial Decisions FINE 3000 – Personal Finance

  2. What Surprised You After College? • How much money it takes to live on your own • How hard it is to save money • How many financial decisions have to be made • How hard it is to pay bills • How little I knew about taxes

  3. Major Financial Decisions • How much to save for emergencies • How much to save for retirement • How much I can afford to spend on a house • How much I can afford to spend on a car • Paying off student loans • Credit cards • Insurance decisions (life, auto, home, health) • Setting aside money to pay taxes

  4. Setting Financial Goals • Goals should always be • Realistic • Measurable • Determined by your actions • Actionable • Goals can be • Changed over time • Critical or aspirational • Private or shared

  5. Factors that Influence Financial Planning and Decision Making • Personal Values • Life-cycle Stage • Employment Situation / Career • Economic Environment

  6. Three Key Questions for Every Financial Decision • How will this decision affect my present finances? • How will this decision affect my future finances? • What risk(s) will I be taking with this decision?

  7. Additional Issues with Financial Decisions • Cash flow • Opportunity costs • Hidden costs • Timing (now vs. later) • Impact on others • Impact on my time

  8. Case Study #1 – Paul Buys a Television • Paul has decided to buy a 72-inch, high-definition, state-of-the-art television. Use the internet to find the range of prices for this type of television. What do you think is a fair price, and how could you determine if you are getting a good deal? • Spending this amount of money on a television has an opportunity cost. With this amount of money available to spend, what would your priorities be?

  9. Case Study#2 – Buy Now, Pay Later • How much does the use of Rebecca’s credit card add to the price of every single cup of coffee? Do you think she is paying a fair price for her coffee and muffin? • Which do you think has a bigger impact on Rebecca’s long-term wealth: her use of a credit card or her decision to buy a coffee and a muffin each day versus making it at home?

  10. Case Study #3 – Sam has an Accident • Sam tells you his story in the hope that you will help him make a good plan for paying off his $5,000 in obligations in the most cost-efficient manner. What suggestions would you make to him? • In addition to helping Sam with his current predicament, suggest some strategies for the future that would make dealing with such an emergency easier.

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