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- Offer advice to someone who is burdened with debt.
- Offer advice to someone whose monthly bills are too high.
- Define personal finances and financial planning.
- Explain the financial planning life cycle.
- Discuss the advantages of a college education in meeting short- and long-term financial goals.
- Describe the steps you’d take to get a job offer and evaluate alternative job offers, taking benefits into account.
- Understand the ways to finance a college education.
- Explain compound interest and the time value of money.
- Discuss the value of getting an early start on your plans for saving.
- Identify the three stages of the personal-finances planning process.
- Explain how to draw up a personal net-worth statement, a personal cash-flow statement, and a personal budget.
- Discuss the trend in the U.S. savings rate.
- Define a subprime loan and explain the difference between a fixed-rate mortgage and an adjustable-rate mortgage.
- Discuss what can go wrong with a subprime loan at an adjustable rate. Discuss what can go wrong with hundreds of thousands of subprime loans at adjustable rates.
- Define risk and explain some of the risks entailed by personal financial transactions.