TEXT: Personal Finance,
third edition, by Jeff Madura, Pearson/Addison Wesley, 2007.
I.
Overview of a Financial Plan
1. Benefits of Understanding Personal Finance
2. Components of a Financial Plan
2. The Steps in the Financial Planning Process
3. The Financial Planning Environment
(A) The Business Cycle
(B) Inflation and the CPI
4. The Role of the Players in the Financial Planning Environment
(A) Consumers
(B) Businesses
(C) Government
II. Financial Statements
1. Personal Balance Sheet
2. Cash Flow Statement
3.
Ratios for Evaluating Financial Statements
4. Budgeting
(A) The Benefits of Budgeting
(B) The Steps in Preparing and Using a Budget
(C) Budgeting Principles
(D) Ron Blue's Principles of Christian Money Management
III. Time Value of Money
1. Future Value of $1
2. Future Value of an Annuity of $1
3. Present Value of $1
4. Present Value of an Annuity of $1
IV. Investments
1. The Role of Investments in a Financial Plan
2. The Risks of Investing and the Benefits of Diversification
3. The Returns from Investing
(A) Approximate Yield
(B) Compound Annual Rate of Return
4. Common Stocks
(A) Characteristics
(B) Cash and Stock Dividends
(C) Sources of Investment Information
(D) Types of Common Stock
(D) Selecting Common Stocks
(E) Ethics and Stock Investing
5. Securities Markets and Transactions
(A) Primary and Secondary Markets
(B) Organized Exchanges Versus the Over-the-Counter Market
(C) Bull and Bear Markets
(D) Full-Service, Discount, and Online Brokers
(E) Odd and Round Lots
(F) Market and Limit Orders
(G) Cash Versus Margin Purchases
(H) Buying Long Versus Selling Short
(I) Portfolio Building and Diversification
(J) Asset Allocation and Correlation
(K) Socially Responsible Investing
6. Bonds
(A) Characteristics
(B) Types of Bonds--Treasury, Municipal, and Corporate
(C) Risks of Bond Investing
(D) Bond Ratings
(E) Bond Quotes
(F) Bond Prices and Yields
(G) Current Yield and Yield to Maturity
7. Mutual Funds
(A) The Mutual Fund Concept
(B) Advantages Offered by Mutual Funds
(C) Types of Mutual Funds
(D) Selecting a Mutual Fund
V. Managing Cash and Savings
1. Popular Liquid Assets
(A) Checking Accounts
(B) Savings Accounts
(C) Money Market Deposit Accounts (MMDAs)
(D) Money Market Mutual Funds (MMMFs)
(E) Certificates of Deposits (CDs)
(F) United States Treasury Bills
(G) United States Savings Bonds
2. Truth in Savings
3. Financial Institutions
(A) Commercial Banks
(B) Savings and Loan Associations
(C) Mutual Savings Banks
(D) Credit Unions
4. Checking Account Selection and Use
5. Bank Reconciliation
VI. Identity Theft
1. The Cost and Scope of Identity Theft
2. Identity Theft Tactics
3. Protecting Against Identity Theft
4. Detecting Identity Theft
5. Response to Identity Theft
VII. Consumer Credit
1. Establishing Credit
2. Credit Reports and Credit Scores
3. The Advantages and Drawbacks of Credit
4. The Spiritual Dangers of Debt (Ron Blue)
5. Questions to Ask Yourself Before Borrowing (Ron Blue)
6. Choosing a Credit Card
7. Methods of Computing Finance Charges on Credit Cards
8. Credit Cards Versus Debit Cards
9. Sources of Consumer Loans
10. Truth in Lending
11. Managing Debt
VIII. Buying a Car
1. New Versus Used
2. Sources of Helpful Information
(A) Consumer Reports: Car Buying Guide
(B) Money
(C) Internet Sites
3. Negotiating Price
4. The Costs of Auto Ownership
IX. Buying a Home
1. Renting Versus Buying
2. The Steps in Buying a Home
(A) Deciding on the Type of Housing You Can Purchase
(B) Determining the Price You can Pay and an Affordable Monthly Payment
(C) Shopping
(D) Making an Offer
(E) Paying Earnest Money
(F) Shopping for a Mortgage
(G) Closing
X. Homeowner's and Renter's Insurance
1. Risk Management Methods
(A) Risk Avoidance
(B) Risk Reduction
(C) Risk Assumption
(D) Risk Shifting
2. Section I and Section II Coverages of an HO-3 and HO-4 (Renter's) Policy
3. Shopping for Homeowner's and Renter's Insurance
XI. Automobile Insurance
1. Coverages Provided by a Personal Auto Policy
(A) Liability
(B) Medical Payments
(C) Uninsured and Underinsured Motorists
(D) Comprehensive and Collision
2. No-fault Automobile Insurance
3. Factors Affecting Automobile Insurance Premiums
4. Shopping for Auto Insurance
XII. Disability Income Insurance
1. Estimating Disability Insurance Needs
2. Factors that Affect the Cost of Disability Insurance
3. Shopping for Disability Income Insurance
4. Social Security Disability Benefits
XIII. Health Care Insurance
1. Factors Contributing to Rising Health Care Costs
2. Components of a Comprehensive Major Medical Insurance Plan
(A) Hospital Insurance
(B) Surgical Expense Insurance
(C) Physicians Expense Insurance
(D) Major Medical Insurance
3. Health Maintenance Organizations (HMOs)
4. Preferred Provider Organizations (PPOs)
5.
Point of Service Plans (POSs)
6. Managed Care Versus Traditional Health Insurance
7. Shopping for Health Care Insurance
8. Medicare
9. Medicaid
XIV. Life Insurance
1. The Life Insurance Concept
2. Determining the Amount of Life Insurance Needed
3. Term Insurance
(A) Level Premium Term
(B) Decreasing Term
(C) Guaranteed Renewable Term
(D) Convertible Term
4. Whole Life Insurance
(A) Continuous-Premium (Straight Life)
(B) Limited-Payment
(C) Single-Premium
(D) Adjustable Life
(E) Universal Life
(F) Variable Life
5. Term Versus Whole Life
6. Life Insurance Contract Features
7. Determining Which Members of the Family to Insure
8. Shopping for Life Insurance
XV. Retirement Planning
1. Pitfalls to Sound Retirement Planning
2. Estimating Income Needed During Retirement
3. Retirement Plans
(A) Employer Sponsored Plans
(B) Personal Retirement Plans--IRAs and Keogh Plans
(C) Annuities
(D) Social Security
XVI. Income Taxes
1. Taxpayer Responsibilities
2. Determining Tax Owed or Tax to be Refunded
(A) Types of Taxable Income
(B) Adjustments
(C) Standard Deduction or Itemized Deductions
(D) Exemptions
(E) Taxable Income
(F) Tax Using Tax Tables or Tax Rate Schedules
(G) Tax Credits
(H) Withholding and Tax Payments
(I) Tax Owed or Tax Refund
3. Tax Forms
(A) Form 1040EZ
(B) Form 1040A
(C) Form 1040
4. Electronic Filing