Description
Young people face unprecedented financial challenges: rising student debt, stiff competition for jobs, barriers to home ownership, dwindling state benefits and prospects of a longer working life. Today, students need financial knowledge and skills more than ever before, not just to build their own financial security, but to create the new generation of advisers that can help all citizens navigate the complex world of personal finance.
Essential Personal Finance is a guide to all the key areas of personal finance: budgeting, managing debt, savings and investments, insurance, securing a home and laying the foundations for retirement. It also provides an introduction to some of the essential foundations of a modern undergraduate finance qualification, including:
- The nature of financial institutions, markets and economic policy that shape the opportunities and decisions that individuals face.
- The range of financial assets available to households, the risk-return trade-off, basics of portfolio construction and impact of tax.
- The importance of the efficient market hypothesis and modern portfolio theory in shaping investment strategies and the limitations of these approaches.
- Behavioural finance as a key to understanding factors influencing individual and market perceptions and actions.
- Using financial data to inform investment selection and to create financial management tools that can aid decision-making.
- A comprehensive companion website accompanies the text to enhance students' learning and includes answers to the end-of-chapter questions.
Written by authors who contribute experience as financial advisers, practitioners and academics, Essential Personal Finance examines the motivations, methods and theories that underpin financial decision-making, as well as offering useful tips and guidance on money management and financial planning. The result is a compelling combination of an undergraduate textbook aimed at students on personal finance and financial services courses, and a practical guide for young people in building their own financial strength and capability.
Table of Contents
List of figures
List of tables
List of boxes
Acknowledgements
Introduction
Part I Have a vision and a plan
1 The necessity of private wealth
Lien Luu
2 Defining and achieving your desired lifestyle and legacy
Jason Butler
3 Money and happiness
Jason Butler
4 Plan your future
Jason Butler
Part II Build a secure foundation
5 The pillars of wealth: budgeting and saving
Tony Byrne and Lien Luu
6 Insuring risks
Lien Luu
Part III Multiply your wealth
7 Residual income
Lien Luu
8 A place to live
Jonquil Lowe
9 Make wise investments
Tony Byrne and Jonquil Lowe
10 Saving for later life
Jonquil Lowe
11 Help from your family
Jonquil Lowe
Part IV The next steps
12 Take action
Lien Luu
Appendix
Glossary
Index
