MCS 2100 Lecture 1: Unit 1 Chapter 1 and 2

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

Document Summary

Personal financial planning: the process of managing your money to achieve personal economic satisfaction. More effective in obtaining, using and protecting financial resources. 6 step financial planning process: determine current situation: income, savings, living expenses and debts, develop financial goals: values and attitudes towards money. 2-5 years, long term, more than 5 years off. Usually occur on a periodic basis and involve items that are used up quickly, such as food, clothing, and entertainment. Durable-product goals: infrequently purchased, expensive items such as appliances, cars and other tangible items. Goals should be: (smart specific, measurable, action-oriented, realistic and timely) Should indicate type of action to be taken. High demand for money pushes interest rates up. Annuity: a series of equal amounts (deposits or withdrawals) made at regular time intervals. Present value: the current value for a future amount based on a certain interest rate and a certain time period.