Screen # 1

 

Course 1: Introduction to Financial Planning

 

 

 

C1 L1

Susan Croes

  

Lessons:

 

 

 

 

 

 

 

 

[INSERT GRAPHIC]

 

The Introduction to Financial Planning course discusses the financial planning process and various areas of the process. It covers planning approaches, gathering the necessary financial information, and setting financial goals. 

 

After you complete the course, you will be able to:

 

·         Describe financial planning process

·         Identify documents needed for the financial planning process

·         Identify the steps needed to develop a plan

·         Describe how to monitor the plan

 

 

 

 

 

 

 

Links/Resources/Graphic descriptions:

 Popup 1:  Lesson Objectives 

Graphic: 

Insert graphic of scale. Show the scale balancing blocks with $ signs. Add arrows to show the circular pattern of balancing $s.

Comments:

 

These objectives are for the entire course.

 

 

Screen # 2

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

 

C1 L1

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

What is Personal Financial Planning?

 

[INSERT GRAPHIC]

 

This lesson provides a brief introduction to personal financial planning and presents several key fundamental financial planning concepts.

 

After completing this lesson, you will be able to:

 

·         List the five-steps of the financial planning process

·         Identify the trade-offs of balancing the financial plan

·         Explain the Life Stages approaches to personal financial planning

·         Explain specific financial need approaches to personal financial planning

                         

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Couple examining financial paperwork.

 

Flash file: Objectives appear on the screen one at a time.

Comments:

 

 

 

 

Screen # 3

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 1: Overview   

C1 L1 T1

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Overview

 

[INSERT GRAPHIC]

 

Personal financial planning is a method of identifying and achieving an individual’s financial goals. Personal financial planning is a systematic way to build a secure financial future and deal effectively with ongoing financial needs. It is a disciplined and organized method of achieving financial control and providing financial security for an individual and his or her family. 

 

A financial plan must be flexible to be effective. Personal financial planning is an evolving process that reflects not only the changes in an individual’s financial situation, but also in his or her life. Because personal financial planning addresses each individual’s specific goals and circumstances, the process is unique for every individual.

 

Personal financial planning may require making difficult choices. Most people have limited resources and must identify and pursue their most important goals. 

 

  

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Image with couple looking at a home.

Comments:

 

 

 

 

Screen # 4

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 1:  Overview

Sub-Topic 1: Evolving Process

C1 L1 T1 ST1

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

Evolving Process

 

[INSERT GRAPHIC]

 

Personal and financial goals can and often do change. Individuals and families need a plan that is flexible enough to change with their circumstances.

 

For example, events such as births, deaths, illnesses and marriage can affect goals profoundly. Employment changes, inflation, unusually good or bad investment results and inheritances will also affect financial circumstances. For these reasons, a person should avoid making plans that are rigid and unresponsive to change.

 

Each individual’s financial plan will be different, for a number of reasons. Individuals have different values and goals. They begin the personal financial planning process from different starting points and experience different life events such as getting married or divorced, raising a family and deciding when to retire

 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Graphic with title "Evolving Process." Show arrows in circular pattern with words "Cash Flow," "Investments," and "Taxes" in the circle.

Comments:

 

 

 

 

Screen # 5

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 1: Overview

Sub-Topic 2: Trade Offs/ Balancing

C1 L1 T1 ST2

Susan Croes

Content and Screen Layout:

 

 

 

Trade Offs/ Balancing

 

[INSERT GRAPHIC]

 

A balanced, comprehensive financial plan addresses short-term, medium-term and long-term goals. While short-term goals may require the most immediate attention, delaying action on long-term goals (such as retirement) may cause significant problems in the future.  

 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Flash: Show boxes with words "Education," "Home," "Vacation Home," "Luxury Car," and "Retirement." Include instructions to click a goal. Show the word "Shortfall" in red to indicate a shortfall or "Achieved" in green to indicate goal was achieved.

Comments:

 

 

 

 

Screen # 6

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 1: Overview

Sub-Topic 2: Trade Offs/ Balancing

C1 L1 T1 ST2

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Trade Offs/ Balancing

As an individual creates a financial plan, he or she may find that there are trade-offs. A person may have to give up some things in order to reach a more important goal. 

 

For example, a couple has a short-term goal of paying off their credit card debt. To meet that goal, they have identified several action steps:

 

                        • Postpone their vacation

                        • Reduce their entertainment expenses

                        • Delay purchase of new car

 

 

There may have trade-offs for medium- and short-term goals. Because each individual has a unique situation and therefore a unique financial plan, there are no answers or solutions that are right for everyone.     

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

 

Comments:

 

 

 

 

 

Screen # 7

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 2: Planning Approach

C1 L1 T2

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Planning Approach

 

[INSERT GRAPHIC]

 

What do individuals want from the financial planning process? Is it a comprehensive view of their financial future? Or are they interested only in specific issues? Either alternative is fine. The deciding issue is simply what best suits an individual’s needs.

 

The two approaches to personal financial planning are:

 

·         Planning for different life stages

·         Planning for specific financial goals

 

 

Let’s review each approach in more detail.

 

Links/Resources/Graphic descriptions:

 

Graphic: 

 

Comments:

 

 

 

 

Screen # 8

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 2: Planning Approach 

Sub-Topic 1: Life Stages

C1 L1 T2 ST1

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Life Stages

[INSERT GRAPHIC]

 

The life stages approach to personal financial planning recognizes that each individual’s needs differ widely throughout the life cycle. The steps in the approach are to:

 

1. Start with a general assessment of someone’s current position

2. Proceed to a more detailed identification of goals

3. Create a comprehensive plan

 

 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Doug will provide Life Stages graphic

Comments:

 

 

 

 

Screen # 9

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 2: Planning Approach 

Sub-Topic 1: Life Stages

C1 L1 T2 ST1

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Life Stages

 

[INSERT GRAPHIC]

 

 

Life events that are likely to have a major impact on a person’s finances are:

 

·         Getting married

·         Raising a family

·         Buying or selling a home

·         Funding children’s education

·         Pursuing a career

·         Getting divorced

·         Retiring

 

 

Each major life event requires a person to assess the events financial impact and then do what is possible to prepare for the consequences. With this approach to financial planning, a person can assess:

 

·         Where he or she is in life

·         What the big events are in the near term

·         What financial planning issues to expect at the time of these events

 

 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

 

Comments:

 

 

 

 

Screen # 10

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 2: Planning Approach 

Sub-Topic 2: Specific Financial Needs

C1 L1 T2 ST2

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Specific Financial Needs

[INSERT GRAPHIC]

 

An alternative to the life stages approach to personal financial planning is an approach that focuses on specific financial issues. Such an approach enables a person to concentrate on specific needs including:

 

                        • Planning retirement

                        • Assessing his or her insurance position

                        • Planning to pay for his or her child’s education

                        • Planning estate needs

 

 

By focusing on specific financial needs, an individual can concentrate on planning and developing strategies for issues that he or she considers most important.  

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

 

Comments:

 

 

 

 

Screen # 11

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Topic 3: Process 

  

C1 L1 T3

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Process

[INSERT GRAPHIC]

 

The financial planning process provides a roadmap for making financial decisions. Using a process makes accomplishing any goal, financial or otherwise, so much easier. The five-step financial planning process involves: 

 

                        1. Gathering information

                        2. Setting goals

                        3. Examining resources

                        4. Developing a plan

                        5. Monitoring the plan

 

 

The remaining lessons in this course discuss each step in detail. You will learn about the various tasks and tools that are involved in each step, and how the steps build a financial plan. 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Graphic with title "Financial Planning Process."

Bullets: Step 1: Gathering Information; Step 2: Setting Goals; Step 3: Examining Resources; Step 4: Developing Plan; Step 5: Monitoring the Plan

Comments:

 

 

 

 

Screen # 12

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Test Question 1:   

  

C1 L1 TQ1

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

 

Test Question 1

 

 

A balanced, comprehensive financial plan addresses:

 

                        a)  Short-term goals

                        b)  Medium-term goals

                        c)  Long-term goals

                        d)  All of the above

 

 

Correct answer: d) All of the above. A balanced, comprehensive financial plan addresses short-term, medium-term and long-term goals. While short-term goals may require the most immediate attention, delaying action on long-term goals (such as retirement) may cause significant problems in the future.  

 

 

Feedback for incorrect answers: Incorrect. A balanced, comprehensive financial plan addresses short-, medium- and long-term goals. While short-term goals may require the most immediate attention, delaying action on long-term goals (such as retirement) may cause significant problems in the future.  

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Graphic with title "Test Your Knowledge."

Comments: Add feedback for each question. 

 

 

 

 

Screen # 13

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Test Question 2:   

  

C1 L1 TQ2

Susan Croes

Content and Screen Layout:

 

 

 

 

 

 

Test Question 2

 

The life stages approach to personal financial planning recognizes that each individual’s needs differ widely throughout the life cycle. The correct order of the steps in the approach are to:

 

a)       Create a comprehensive plan; start with a general assessment of someone’s current position; and proceed to a more detailed identification of goals

b)       Start with a general assessment of someone’s current position; proceed to a more detailed identification of goals; and create a comprehensive plan 

c)       Start with a general assessment of someone’s current position; create a comprehensive plan, proceed to a more detailed identification of goals; and monitor the plan

d)       Start with a general assessment of someone’s current position; monitor the plan; proceed to a more detailed identification of goals; and create a comprehensive plan

 

 

Correct answer: b) Correct! Always start with a general assessment of someone’s current position; proceed to a more detailed identification of goals; and create a comprehensive plan. 

 

 

Incorrect answer: Incorrect. The correct sequence is to start with a general assessment of someone’s current position; proceed to a more detailed identification of goals; and create a comprehensive plan. 

 

 

 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Graphic with title "Test Your Knowledge." 

Comments: Add feedback for each question. 

 

 

 

 

 

Screen # 14

 

 

 

Course 1: Introduction to Financial Planning

Lesson 1: What is Personal Financial Planning?  

Test Question 3:   

  

C1 L1 TQ3

Susan Croes

Content and Screen Layout:

 

 

 

 

 

Test Question 3

 

The financial planning process provides a roadmap for making financial decisions. Using a process makes accomplishing any goal, financial or otherwise, so much easier. The correct order for the five-step financial planning process is: 

 

a)       Gathering information, setting goals, examining resources, developing a plan, monitoring the plan

b)       Examining resources, setting goals, developing a plan, gathering information, monitoring the plan

c)       Developing a plan, monitoring the plan, examining resources, setting goals, gathering information

d)       Gathering information, examining resources, setting goals, developing a plan, monitoring the plan

 

 

Correct answer: a)The correct order for the five-step planning process is a) Gathering information, setting goals, examining resources, developing a plan, monitoring the plan.

 

 

 

 

Links/Resources/Graphic descriptions:

 

Graphic: 

Graphic with title "Test Your Knowledge."

Comments: