Personal Finance: An Integrated Planning Approach

This book prepares students to meet the challenges of a changing economy by focusing on the two most important personal financial skills: planning and a basic understanding of planning techniques; and the ability to think critically and to make effective decisions.
Decision-Making Approach: The analysis employs a four-part approach to decision making that involves setting goals, listing alternatives, measuring performance, and evaluating achievement. Important in this process are the concepts of opportunity costs and marginal analysis. These topics are introduced and explained in Chapter 1 and are used extensively throughout the text.
An Emphasis on Risk and Return: At the core of financial decision making is the balancing of risk and return. This concept applies in particular to investments, but it’s also useful in decisions that involve uncertainty; thus, there is an expanded discussion of risk management in the insurance section. In the investment section, we treat risk in such a way that students can use the concept when making investments

PART I: THE BASIC FRAMEWORK: ORGANIZING AND MANAGING YOUR FINANCIAL RESOURCES
Ch 1.Financial Planning: Why It’s Important to You
Ch 2.The Time Value of Money: All Dollars Are Not Created Equal
Ch 3.Financial Statements and Budgets: Where Are You Now and Where Are You Going?
Ch 4.Taxes: The Government’s Share of Your Rewards

PART II: LIQUIDITY MANAGEMENT: MANAGING CURRENT ASSETS AND CURRENT LIABILITIES
Ch 5.Cash Management: Funds for Immediate Needs
Ch 6.Short-Term Credit Management: Consumer Credit

PART III: BUYING NOW AND PAYING LATER: MANAGING YOUR LONG-TERM LIABILITIES
Ch 7.Consumer Durables: The Personal Auto
Ch 8.Housing: The Cost of Shelter

PART IV: INVESTING FOR THE FUTURE: GROWING YOUR FINANCIAL RESOURCES
Ch 9.Financial Markets and Institutions: Learning the Investment Environment
Ch 10.Investment Basics: Understanding Risk and Return
Ch 11.Stocks and Bonds: Your Most Common Investments
Ch 12.Mutual Funds and Other Pooling Arrangements: Simplifying and (Maybe) Improving Your Investment Performance

PART V: PROTECTING YOUR WEALTH: INSURANCE AND RETIREMENT PLANNING
Ch 13.Property and Liability Insurance: Protecting Your Lifestyle Assets
Ch 14.Health Care and Disability Insurance: Protecting Your Earning Capacity
Ch 15.Life Insurance and Estate Planning: Protecting Your Dependents
Ch 16.Retirement Planning: Planning for Your Long-Term Needs

Appendix. Time-Value-of-Money Concepts