MCS 2100 Lecture Notes - Lecture 1: List Of Fables Characters, Cash Flow, Cash Flow Statement

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Rosemary Vanderhoeven

Document Summary

Personal financial planning- process that involves setting your financial goals and deciding how you"re going to reach those goals. 6-step planning process: helps to review, revise, and align goals with changing circumstances. Goals need to be realistic, specific/measurable, time frane, and action plan. Influence prevailing economic factors (market forces, financial insitutions, global conditions) need to be considered. Important to identify strategies (spending, saving, investing, borrowing) that are consistent in achieving the stated goals. 2 major components: future value and present value. Future value (compounding)- yield amount to which a current sum will increase based on a certain interest rate and period of time. Present value (discounting)- yield current value of future sum based on certain interest rate and period of time. Money can be accumulated by depositing a lump sum or series of deposits. Loans can be repaid with lump sum or with series of payments.