Management and Organizational Studies 2320A/B Midterm: 2295 Midterm Notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: Chris Torrence

Document Summary

Personal financial planning: the process of managing your money to achieve personal economic satisfaction. Financial planning process: determining your current financial situation, developing financial goals, identifying alternative courses of action, evaluating alternatives, creating and implementing a financial action plan, re-evaluation and revising the plan. Values: ideas and principles that a person considers correct, desirable, and important. Opportunity cost: what a person gives up by making a choice. Time value of money: increases in an amount of money as a result of interest earned. Adult life cycle: the stages in the family situation and financial needs of an adult. Life cycle approach: the idea that the average person goes through four basic stages in personal financial management (<30s, 30s-50s, 50+, retirement years). Indicate the type of action to be taken. Economics: the study of how wealth is created and distributed. Inflation: a rise in the general level of prices. Compounding: a process that calculates interest based on previously earned interest.