REVIEW OF

PERSONAL FINANCE COURSE

Course leader: Assoc. Prof. Dr. Le Thanh Tam

1
 6-2

Key issues to 1. Key concepts

cover in the 2. Assignments
course 3. Exercises

2
Key concepts
• Finance
• Individuals
• Family
• Management
Content
• Chapter 1: Personal financial planning (chap 1 in textbook)
- Goals setting for your life and financial goals
- Opportunity costs and time value of money
- 6 steps in financial planning

• Chapter 2: Money management skills (chap 2 in textbook)

- Components of money management
- System for personal financial records
- Personal financial statements
- 7 steps of effective budgeting
- Savings techniques and amount calculation
Content
• Chapter 3: Wise purchasing strategies and financial products for person
(chapters 4, 5,6, 7, 8, 9, 10 in textbook)
- 6&7: purchasing online, car, house.
- 5&7: Borrowing (credit cards, consumer credit, mortgage loans)
- 4: Payment
- 8,9,10: Insurance (home & automobile insurance, health & disability insurance, life
insurance)
Content
• Chapter 4: Personal investment strategies (chapter 3, 4, 11, 12, 13 in textbook)
- 3: Tax
- 4: savings
- 11: bond
- 12: Stocks
- 13: Mutual funds
Content
• Chapter 5: Retirement planning (chapter 14 in textbook)
- Planing for retirement: start early
- Your retirement income
- Estate planning
- Legal aspect of estate planning
 Debate and individual presentation

• Cover which issues in this course?

What are your key takeaways?
 6-10

Components of
final exam – for 1. Multiple choice questions/yes-no questions on
2023 key concepts: 12 questions (30 scores)
2. Assignments (30 scores)
Open book exam.
Students can bring hard copy notes - 1 question from Concept checks (10)
and calculator .
-No cell phones, tablets and laptops - 1 question from debate/homework/individual
– No discussion among students.
assignment (20)
3. Two small exercises (40 scores)

10
Exercises
• PV (present value) and FV (Future value) – Chapter 1
• Your personal financial statement, key ratios and evaluate your
financial progress – Chapter 2
• APR (Annual Percentage Rate) – Chapter 5
• Mortgage payment – p. 231
PV – P. 14
FV – p 14
Personal financial statements – p. 48-57
• Balance sheet: Total assets = Total liabilities + Net worth.
• Income statement: Incomes, expenditures, retained earnings (net
savings).
• Cash flow: cash inflow, cash outflow and net cash flow
Ratios for evaluating financial progress –
p.51
Annual percentage rate - p. 162
 Mortgage payment – p. 231

• Example:
• 30-year, 7%, $223,000 mortgage
• Monthly payment = 223 × $6.65 = $1,482.95
• Payment = Principal repayment + interest
• PITI = payment + taxes + insurance

7-17
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