MCS 2100 Chapter Notes - Chapter 1: Registered Retirement Savings Plan, Microsoft Money, Sandwich Generation

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Jian Zhou

Document Summary

Lo1analyze the process for making personal nancial decisions. Financial goals should: (1) be realistic; (2) be stated in speci c, measurable terms; (3) have a time frame; and (4) indicate the type of action to be taken. They are affected by a person"s values, attitude toward money, and life situation. Lo3assess economic factors that in uence personal nancial planning. Financial decisions are affected by economic factors such as consumer prices, interest rates, and employment opportunities. Lo4determine personal and nancial opportunity costs associated with personal nancial decisions. Every decision involves a trade-off with things given up. Personal opportunity costs include time, effort, and health. Financial opportunity costs are based on the time value of money. Future value and present value calculations enable you to measure the increased value (or lost interest) that results from a saving, investing, borrowing, or purchasing decision. Lo5identify strategies for achieving personal nancial goals for different life situations.