Appendix 2.


Key Terms: Lifestyles and Stages of Life
Lifestyle Conditions
age dependents economic outlook education level employment status health condition marital status

Factors about the way a person lives and works that affect his/her financial income, needs, and expenses A set of consecutive ages that tend to have similar incomes, needs, and expenses People who rely on another person for primary financial support---e.g., children, spouse, other family members The state of the economy, whether favorable or unfavorable, as measured by economic indicators, including interest and unemployment rates The highest grade in school or degree completed A person’s work circumstances, whether employed or unemployed, full-time or part-time, self- or other-employed A person’s health factors, whether sick or well, able or disabled, injured or not Whether married or single, divorced, separated, etc. Typical stages of wealth a person accumulates during the life cycle The sum total of assets belonging to one person---including money, property, and personal possessions The stage during which most people form a family, begin to work and earn money The stage that includes the peak earning years, giving money to oneself The stage of retirement and wealth consumption, money given to chosen ones Typical stages of life for individuals and families

Financial Life Cycle
wealth basic wealth protection wealth accumulation wealth distribution

Individual and Family Life Cycles
beginning family expanding family parenting family launching family mid-years family aging family variations
7086 Personal Finance

A family of young adults who marry; newlyweds A child-bearing family; has one or more young children A developing family, with children growing into middle childhood and early teens A family with middle-age parents and children leaving home for college, etc. A pre-retirement famly, no children at home A family of elderly adults, usually retired Families that do not follow the “typical” life cycle stages
Unit A: Preparing to Live Independently Summer 2010, Page 63

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