Personal Finance Notes
Seminar 1 Exercises
Chapter 1 (1.2 Question 4): How do business cycles and the health of the economy affect the value of your labor? In terms of supply and demand, what are the optimal conditions in which to sell your labor? How might further education increase your mobility in the labor market (the value of your labor)?
The economy goes in business cycles where it has recurring period of economy-wide expansion (growth) and periods of contraction (shrinking). These cycles are often measured by the increase or decrease in the gross domestic product (GDP). The economy produces not just goods and services to satisfy its members but also jobs, because more people participate in the market economy by trading their labor, and most rely on wages as their primary source of income. The economy therefore must provide opportunity to earn wages so more people can participate in the economy through the market. An optimal time would be during an expansion period because of the positive growth in the economy with minimal unemployment. Further education within a specific discipline could help the value of a person’s labor because it shows specialization in that area.
Chapter 1 (1.4 Question 2): View the video “Choosing a Financial Planner” at which advice about getting financial advice do you find most valuable? Share your views with classmates. Also view the MSN Money video on “When People Should Consider Getting a Financial Advisor.
According to the featured speaker, is financial planning advice for everyone? How do you know when you need a financial planner?
Financial planning process involves figuring out where you’d like to be, where you are, and how to go from here to there. Financial planning is needed for a specific life goal and guidance on how to get there. If they are going through transition (i.e. divorce, death of a spouse, inheritance, career transition, and so on). They can guide and coach you to take the emotion out of the decisions to reach goals.
Chapter 1 (1.2 Question 4): How do business cycles and the health of the economy affect the value of your labor? In terms of supply and demand, what are the optimal conditions in which to sell your labor? How might further education increase your mobility in the labor market (the value of your labor)?
The economy goes in business cycles where it has recurring period of economy-wide expansion (growth) and periods of contraction (shrinking). These cycles are often measured by the increase or decrease in the gross domestic product (GDP). The economy produces not just goods and services to satisfy its members but also jobs, because more people participate in the market economy by trading their labor, and most rely on wages as their primary source of income. The economy therefore must provide opportunity to earn wages so more people can participate in the economy through the market. An optimal time would be during an expansion period because of the positive growth in the economy with minimal unemployment. Further education within a specific discipline could help the value of a person’s labor because it shows specialization in that area.
Chapter 1 (1.4 Question 2): View the video “Choosing a Financial Planner” at which advice about getting financial advice do you find most valuable? Share your views with classmates. Also view the MSN Money video on “When People Should Consider Getting a Financial Advisor.
According to the featured speaker, is financial planning advice for everyone? How do you know when you need a financial planner?
Financial planning process involves figuring out where you’d like to be, where you are, and how to go from here to there. Financial planning is needed for a specific life goal and guidance on how to get there. If they are going through transition (i.e. divorce, death of a spouse, inheritance, career transition, and so on). They can guide and coach you to take the emotion out of the decisions to reach goals.