In this section you will become more aware of your personal financial situation and understand the importance of finances in the personal lifecycle. We will look at:
Understand how to plan for medium and long-term financial needs
Achieving Financial Awareness
Life Cycles
A personal life cycle attempts to summarise the key phases which all individuals go through during their lifetime matched with their changing financial needs.
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Needs, Wants and Aspirations
Needs are essential, ‘must-have’ items that everyone must have to survive, such as water, food and shelter. Needs are quite limited.
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Internal and External Factors
Internal factors are those that come from within people themselves. The key internal factor that affects someone’s choices is their own personal set of values, beliefs and attitudes.
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Money Value
Prior to making the decision of borrowing money, it is important to first decide not to buy the things that we want.
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