Question: DEVELOPING CRITICAL-THINKING SKILLS
Financial management involves preparing a plan for obtaining and using the money needed to accomplish a firm's goals and objectives. After a financial plan has been developed, it must be monitored continually to ensure that it actually fulfills these goals and objectives. To accomplish your own goals, you should prepare a personal financial plan. Determine what is important in your life and what you want to accomplish, budget the amount of money required to get it, and identify sources for acquiring the funds. You should monitor and evaluate the results regularly and make changes when necessary.
Assignment: 1. Using the three steps shown in Figure 19.2, prepare a personal financial plan.
2. Prepare a three-column table to display it.
a. In column 1, list at least two objectives under each of the following areas: Financial (savings, investments, retirement) Education (training, degrees, certificates) Career (position, industry, location) Family (children, home, education, trips, entertainment)
b. In column 2, list the amount of money it will take to accomplish your objectives.
c. In column 3, identify the sources of funds for each objective.
3. Describe what you learned from doing this exercise in a comments section at the bottom of the table.