PERSONAL FINANCE

HHS Business Dept.

SYLLABUS

Log-in and Create Folders: Go to McCarty Website to

view Units and make a folder for each unit•Term of the Day folder too

http://www.haverford.k12.pa.us/19232091013454803/site/default.asp

The Stock Market Game: http://virtualstockexchange.com/Game/Homepage.aspx Directions, click here:

Hot Stock Picks, from CNBC’s Jim Kramer:

http://www.cnbc.com/id/15840232?video=1246337898&play=1

What is financial planning?Financial planning is the process of meeting your life goals through a “big picture” approach to managing your finances.

A tool used to achieve financial success based upon the development and implementation of financial goals.

helps a person avoid financial difficulties. Well-written financial goals and

implementing them into a financial plan, a person will have the means to achieve the standard of living they desire.

Varies depending upon the values and goals of the individual AND their lifestyle conditions.

Financial planning is an ongoing, LIFE-LONG process.

What is financial Planning…continued

Financial Planning’s RoleFinancial planning helps you to:

• Define short- and long-term goals —what’s most important to you.

Short-term – within a year Long-term – longer than a year

What Are Your Goals?• Do you want to own a house, take a vacation,

buy a new car?

What Are Your Goals?• Do you want to have children and send them to

private schools and pay for their college costs? 

What Are Your Goals?• Do you want to retire early?

What Are Your Goals?• Do you want to become wealthy and leave

a large endowment to your teacher?

What Is Your Current Status?

Have you already saved enough to put a down payment on your dream home?

What Is Your Current Status?

Are you comfortable with the currentallocations in yourinvestment portfolio?

What Is Your Current Status?

How much are you saving,

and is it enough to pay for

your children’s college tuition bills?

What Is Your Current Status?

Are you in the process of changing jobs?

Financial Planning’s RoleFinancial planning helps you to:

• Define short- and long-term goals — what’s most important to you

Gathering client data, including goals

• Assess your current finances and commitments.

• Decide where you want to be in the future.

• Identify realistic strategies to achieve goals.

• Put your plan into action!

• Monitor progress. review/adjust strategies as needed keep on track to meet your goals

Can I Do My Own Financial Planning?• Do I know what my goals are in life?

• Do I know how to prioritize or achieve them?

• Do I understand the level of risk in my investment portfolio?

• Am I comfortable choosing financial products?

Can I Do My Own Financial Planning?• Do I have time to organize and track my

finances myself?

• Do I have the discipline to plan a specific financial strategy and stick to it?

• Do I want to try financial planning alone?

Who Is a Financial Planner?

•Financial Analyst For a company For individual clients

•Accountant – tracks and analyzes financial data, checking for accuracy

•Stockbroker - studies publicly traded companies’ financial data, gives recommendations as to the health of the company

•Insurance agent – studies the risk of clients and places a value on insurance policies

•Certified Financial Planner, CFP. Major in Finance,take the CFP Exam and Passed

The State you took the exam in, certifies you to give Financial Advice

Own a Financial Advisory Business

How Do I become a Financial Planner

A bachelor’s degree (4 year college degree) in Finance

The Certified Financial Planner (test) certification was created to meet the professional development needs of those seeking to become financial planners.• Example: Pre-Law / Pre-Med / Education• As the financial planning profession has grown, so too

has the CFP® certification matured and strengthened to become the gold standard for those seeking to demonstrate their competency as financial planners.

MBA: Masters in Business Administration

Mo’ Education, Mo’ Money

Planning for Retirement at every age!

1. Your 20s: Good Habits & Smart Planning = Wealth

Live within your salary Know what your college major pays Invest a portion of your salary in either a 401k (group of

stocks) or a Roth IRA (high interest savings account)

2. Your 30s: The Vital Years For Retirement Planning: http://www.time.com/time/specials/packages/article/0,28804,1930805_1931673,00.html

Your 40s: Time To Shift Into High Gear Your 50s: Retirement Plans Under Siege Your 60s: A Post Bear-Market Retirement Strategy

Podcast: http://www.time.com/time/specials/packages/article/0,28804,1930805_1930804,00.html

 Burlington Coat Factory (NJ) 10 jobs

 Ajilon Professional Staffing (PA) 6 jobs AmerisourceBergen  (PA) 6 jobs Chase (DE) 6 jobs CyberCoders (PA) 6 jobs GSI Commerce Solutions, Inc. (PA) 6 jobs

 Philadelphia Insurance Co (PA) 6 jobs

 Accounting Principals (PA) 5 jobs Deloitte (PA) 5 jobs Teva Pharmaceuticals USA (PA) 5 jobs Aon (PA) 4 jobs JPMorgan (DE) 4 jobs MRINetwork (PA) 4 jobs Randstad (PA) 4 jobs Sallie Mae (DE) 4 jobs

TOP Philly ACCOUNTING & FINANCE EMPLOYERS: 1/22/10

Top National Financial Investment Firms:

Provides the Services of financial statement analysis, asset selection,

stock selection, plan implementation and ongoing monitoring of investments.

1. Barclays Global Investors 2. Charles Schwab 3. Edward Jones Investments 4. Fidelity Investments 5. JPMorgan Asset Management 6. Legg Mason 7. Merrill Lynch 8. Prudential Financial 9. Vanguard Group

Job Titles in Finance and Accounting

Marketing Analyst (PA) 11 jobs Staff Accountant (PA) 8 jobs Investment Specialist (PA) 7 jobs Software Quality Assurance Analyst (PA) 7 jobs Sr. Accountant (PA) 7 jobs Accounts Payable Clerk (PA) 6 jobs Bill Collector (PA) 6 jobs Business Systems Analyst (PA) 6 jobs Financial Analyst (PA) 6 jobs Logistics Analyst (PA) 6 jobs Payroll Manager (PA) 6 jobs Records Management Analyst (NJ) 6 jobs Benefits Analyst (PA) 5 jobs Branch Manager (PA) 5 jobs Sr. Accountant (DE) 5 jobs Tax Preparer (PA) 5 jobs Accounting Manager (PA) 4 jobs Accounts Receivable/Payable Clerk (PA) 4 jobs Actuary Associate (DE) 4 jobs Assistant Portfolio Manager (PA) 4 jobs Compensation Analyst (PA) 4 jobs Director - Finance (PA) 4 jobs

The Best Paying Jobs in Finance: Read - http://career-advice.philly.monster.com/salary-benefits/salary-information/best-paying-finance-jobs/article.aspx • Actuaries: $81,640

• Economists: $73,690

• Financial Services Sales Agents: $67,130

• Securities and Commodities Sales Agents: $67,130

• Management Analysts: $66,380

• Financial Analysts: $63,860

• Personal Financial Advisors: $63,500

• Financial Examiners: $63,090

• Market Research Analysts: $57,300

• Real Estate Brokers: $57,190

Agents/Business Managers in the Entertainment/Sports Industries

: $53,800

• Accountants: $52,210

• Auditors: $52,210

• Cost Estimators: $52,020

• Insurance Underwriters: $51,270

• Credit Analysts: $50,370

• Loan Officers: $49,440

• Insurance Appraisers (Auto Damage): $48,090

Define and Find One job opportunity for the following Finance Jobs:

Resources: http://en.wikipedia.org/wiki/Main_Page

www.careerbuilder.com or www.monster.com Find Salary for 19083: www.salary.com

1. Actuaries2. Financial Analysts3. Financial Planner4. Accountant5. Auditors6. Credit Analysts7. Claims Adjuster8. Stock Broker

Actuary – Job:

Where

Describe

RequirementSalary

How to Maintain your Certification as a CFP:

• Adherence to Practice Standards

• Renew certification every 2 years

• Continuing education (30 hours every 2 years)

• Disclosure of ethical/criminal findings

How to Interview a Financial Planner

1) What is your background and experience?2) What are your professional qualifications?3) What services do you offer, and may I

chooseonly some of those services?

4) What is your approach to financial planning?

5) Do you work alone or with others as a team?

6) How do you get paid for your services?

7) How much do you typically charge?8) Could anyone besides me benefit

from your recommendations?9) Have you ever been publicly

disciplined for any unlawful or unethical actions in your professional career?

10) Can I have it in writing?

How to Interview a Financial Planner

Your Rights as a Financial Planning ClientYou have the right to:

• a planner who has integrity.

• objective advice.

• a planner who is competent.

• be treated fairly.

• privacy.

• a planner who is professional.

• a planner who is diligent.

Checking Up on a Planner• Certified Financial Planner Board of Standards

(888) 237-6275 / www.CFP.net

• North American Securities Administrators Association(202) 737-0900 / www.nasaa.org

• National Association of Insurance Commissioners(816) 842-3600 / www.naic.org

• National Association of Securities Dealers Regulation(800) 289-9999 / www.nasdr.com

• Securities and Exchange Commission(202) 942-7040 / www.sec.gov

Any Questions?

Presented by:YOUR NAME, CFP®

CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame logo)® are certification marks owned by Certified Financial Planner Board of Standards Inc. ©2002-2004 CFP Board.

Financial Planning 101