New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Personal Finance 218, Week 1 Notes

by: Parker Moore

Personal Finance 218, Week 1 Notes FIN 218

Parker Moore
GPA 3.82
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Personal Finance

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Personal Finance notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

Here is a summary of Chapter 1 for the first week. I have included some tips to achieving a better grade in the class. I recommend printing these out and looking over the concepts at least once or ...
Personal Finance
David P. Bell
Class Notes
Intro to Personal Finance, Intro to Personal Finance Planning




Popular in Personal Finance

Popular in Finance and General Business Department

This 6 page Class Notes was uploaded by Parker Moore on Sunday October 2, 2016. The Class Notes belongs to FIN 218 at Portland State University taught by David P. Bell in Fall 2016. Since its upload, it has received 35 views. For similar materials see Personal Finance in Finance and General Business Department at Portland State University.

Similar to FIN 218 at PSU

Popular in Finance and General Business Department


Reviews for Personal Finance 218, Week 1 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/02/16
Finance 218 Fall 2016 Highlight = Keyword Goals for Finance 218 include:  Manage the unplanned o Financial planning for unexpected events (i.e. illness, hospital bills,  earthquake, ect.)  Accumulate wealth for special expenses  o Travel, saving for a car, big wedding  Save for retirement  “Cover your assets” o Having insurance at a low cost  Invent intelligently  o Be wary of scams!  Minimize your payment to Uncle Sam o Reduce the amount of tax you have to pay on your earnings The Personal Financial Planning Process  Step 1: Evaluate your financial health  o How much money do you have? How much are you spending? Keeping  a record of your spending is very useful here.   Step 2: Define your financial goals o Define your goals, which entails writing down or formalizing your  financial goals, looking at costs, and determining when the money to  accomplish those goals will be needed.  Step 3: Develop a plan of action o Common factors of an action plan include:  Flexibility  Liquidity  Protection  Minimization of taxes  Step 4: Implement your plan  Step 5: Review your Progress, Reevaluate, and Revise your plan o Make sure that your plan is continuously working and, if it is not, change it! To establish your financial goals you need to look at the three time horizons:  Short term o Can be accomplished within a year (buying a new TV)  Intermediate term o 1 to 10 year goal (saving for college)  Long term o More than 10 years to accomplish (retirement) Estate Planning: Planning for your eventual death and the passage of your wealth to  your heirs. Inflation: an economic condition in which rising prices reduce the purchasing power  of money What Different College Majors Earn: To increase your value as an employee:  Do your best work  Project the right image  Gain an understanding of the power structure so that you can work within it  Gain visibility. Make those with power aware of your contributions  Pay attention to ethics because the most damaging event you, as an employee,  can experience is a loss of confidence in your ethical standards. Ethical  violations end careers  Q: What Determines your income? A: Biggest factor is your education.    Q: What financial issues do Americans worry about the most? A: Retirement. The Ten Principles of Personal Finance:  Principle 1: The best protection is knowledge o The hard part is differentiating between good and bad advice. A solid  understanding of personal finance will:  Enable you to protect yourself from the danger of an incompetent  investment advisor  Provide you with an understanding of the importance of planning  for your future  Give you the ability to make intelligent investments and take  advantage of changes in the economy and interest rates  Allow you to extract the principles you learn here and elsewhere  and apply them to your own situation   Principle 2: Nothing Happens without a plan o The Longer you put off creating a financial plan, the more difficult  accomplishing goals becomes.  Principle 3: The Time value of money o To create wealth, we invest savings and allow it to grow over time. This  growth is an illustration of the time value of money.  o Compound Interest: Interest paid on interest. This occurs when interest paid on an investment is reinvested and added to the principal, thus  allowing you to earn interest on the interest, as well on the principle.  Principle 4: Taxes Affect Personal Finance Decisions o No investment decision should be made without first knowing the effect  of taxes on the return of that investment  Principle 5: Stuff happens, or the importance of liquidity o Must plan for unexpected events meaning some of your assets must be  liquid or easily accessible   Principle 6: Waste not, want not­Smart Spending Matters o First step in smart buying is to differentiate want from need and  understand how each purchase fits into your life. The second step  involves doing your homework to make sure what you get has the  quality that you expect. The third step involves making a purchase and  getting the best price, and finally, the last step is maintain your purchase.  Principle 7: Protect Yourself Against Major Catastrophes o Insurance provides stability and in the case where you can’t afford to  have certain catastrophes occur, these events will be insured  Principle 8: Risk and return go hand in hand o Minimum return: the minimum acceptable rate of return on an  investment o Diversification: Acquisition of variety of different investments, instead  of just one, to reduce risk.  o Typically the higher the risk the higher the reward. Lower the risk lower  the reward. You want to avoid High risk Low reward and if there is ever  a low risk high reward it is most likely a scam.   Principle 9: Mind Games, your finical personality and your money o It is hard for some people to separate their emotions from their financial  planning/spending. These are the kind of mind traps you want to avoid,  and the kind of tricks that if you can control them, and if you recognize  what your financial personality is, you can take it out of the process and  avoid some of the pitfalls you’d otherwise be subject to.   Principle 10: JUST DO IT! o Create the plan, actually do it. Make the commitment to actually get  started. It’s easier to spend than save but in order to achieve your goals it will take some discipline and work.  *TIP­ You can always review page 24­27 in the textbook for another quick summary  of chapter 1 as well as trying some practice problems in the text. I would suggest at  least reading the discussion cases and fully understanding the questions in order to be  successful in the class. 


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.