Describe how individual characteristics and economic factors influence personal
financial planning. This was one of the areas for chapter one that I had difficulty with.
This will impact the planning for my financial future and goals because this is the
area that discusses the outside factors that are going to affect my financial
decisions. I worked for a financial advisor for 2 years so most of the terms and ideas
sound familiar to me but this was a good opportunity for me to sharpen up on all the
terms.
Explain how compound interest benefits investors. This the the second one that I had
a lower score on for ch. 2. This discusses the interest that comes from reinvesting
what you have made. It is the interest you are making on the interest. It can help in
making you a successful investor.
When making financial decisions it is important to consider all aspects and knowing
what money is coming in and what money is going out. You have to make your
money work for you and you have to set goals and plan for your financial future.
The financial calculator is going to be very useful when you need to know what you
are going to come out with after you show what you are going to put in.
