SOCSCI 2PF3 Lecture Notes - Lecture 1: Financial Statement, Plans, List Of Fables Characters

• School: McMaster University
• Department: Social Sciences
• Course: SOCSCI 2PF3
• Professor: Tony Belsito

Document Summary

First test = 30% on january 30th (only m/c) Test 1 chapter 1, 2, 5. Chapter 1 understanding the financial planning process. Control spending in order to live well today and tomorrow! Accumulate wealth so resources are available when needed. Wealth of a person or household at any point in time is the total value of items owned: intangible. E. g. stocks, bonds, mutual funds: tangible. What is a financial goal? (cid:498)money(cid:499) = medium of exchange (cid:498)need(cid:499) = something that we have to have (cid:523)e. g. food, water(cid:524) (cid:498)wants(cid:499) and (cid:498)desires(cid:499) = vague notions of what we might like. Financial goal 3 important dimensions : an amount of money is attached to the goal, a milestone or time is set for attainment of the goal, financial goals are prioritize from first to last. Prioritize goals and set a definite time frame. Different stages in your life, you will have different goals (all depends on life + all individual)