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Fin 101 Chapter 3

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CH1
1.How can using personal financial planning tools help you improve your financial situation? Describe changes you can make in at least three areas.

a. Personal financial planning tools can help with expenses for house and groceries (example: making a grocery list before you go out so you don’t over spend on food that looks “yummy”), changes in investment (starting up a 401k), and increasing savings by proper financial planning.
2. Recommend three financial goals and related activities for someone in each of the following circumstances: a. A Junior in college 1. Apply for a credit card through his or her local bank to begin establishing credit 2. Begin searching for an apartment to live in after college. Also, it would be wise to start saving for the security deposit and monthly rent/utilities 3. Begin searching for jobs. This can be done at career fairs, online websites such as LinkedIn, or job postings online b. A 30-year-old computer programmer who plans to earn an MBA degree 1. Begin to research graduate schools for his or her MBA and figure out the application process, cost to apply, and cost to attend 2. Reduce spending and expenses by around 10% to save money for tuition and expenses of graduate school 3. Talk to his or her employer about setting up a 401k retirement plan
c. A couple in their 30s with two children, ages 5 and 9
1. Begin to save for their children’s’ college fund
2. Ensure that they are saving enough in their 401k for retirement (or begin saving if they haven’t already)
3. Review life insurance coverage information to ensure financial security d. A divorced 42-year-old man with a 16-year-old child and a 72-year-old father who is ill 1. Review father’s insurance and make sure that it is sufficient for long-term care/outside care 2. Talk to a financial advisor about what his 401k looks like

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