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Screen # 1 |
Course 1: Introduction
to Financial Planning
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C1 L1 Susan Croes |
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Lessons: |
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[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 |
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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. |
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Screen # 2 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? |
C1 L1 Susan Croes
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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
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Links/Resources/Graphic descriptions:
Graphic: Couple examining financial paperwork. Flash file: Objectives appear on the screen one at a time.
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Screen # 3 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? Topic 1: Overview
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C1 L1 T1 Susan Croes
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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. |
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Graphic: Image with couple looking at a home. |
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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
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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 |
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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: |
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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
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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. |
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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: |
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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
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Content and Screen Layout: |
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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. |
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Screen # 7 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? Topic 2: Planning
Approach |
C1 L1 T2 Susan Croes
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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. |
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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
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Content and Screen Layout: |
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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 |
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Links/Resources/Graphic descriptions:
Graphic: Doug will provide Life Stages graphic |
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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
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Content and Screen Layout: |
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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 |
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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
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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. |
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Screen # 11 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? Topic 3: Process |
C1 L1 T3 Susan Croes
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Content and Screen Layout: |
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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. |
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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: |
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Screen # 12 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? Test Question 1: |
C1 L1 TQ1 Susan Croes
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Content and Screen Layout: |
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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. |
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Links/Resources/Graphic descriptions:
Graphic: Graphic with title "Test Your Knowledge." |
Comments: Add
feedback for each question. |
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Screen # 13 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? Test Question 2: |
C1 L1 TQ2 Susan Croes
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Content and Screen Layout: |
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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. |
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Links/Resources/Graphic descriptions:
Graphic: Graphic with title "Test Your Knowledge." |
Comments: Add
feedback for each question. |
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Screen # 14 |
Course 1:
Introduction to Financial Planning Lesson 1: What
is Personal Financial Planning? Test Question 3: |
C1 L1 TQ3 Susan Croes
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Content and Screen Layout: |
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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. |
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Links/Resources/Graphic descriptions:
Graphic: Graphic with title "Test Your Knowledge." |
Comments: |
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