GEN1000 Perspectives on General Education
FIN4004 Personal Financial Planning
(This module is designed for all students EXCEPT BBA-FA, BBA-FB and BBA-BAF students.)
The economy and our personal finances are interdependent. Changes in one area will affect changes in other areas. This module will explore the broad social and economic impacts that are possible through either good or poor personal financial decisions. This module will also look at how the economy and government economic decisions can affect our financial decisions.
Upon completion of this module, students should be able to:
a. Comprehend the importance of personal finance to both the individual and the society
b. Interpret the basics of financial literacy and identify the tools for managing personal wealth
c. Analyze the impacts of personal financial decisions on the economy
d. Analyze the impacts of the economy and government economic decisions on personal financial decisions
e. Identify and prevent suspicious scams, and analyze the social impact of such scams.
1. Introduction: Interdependence of the Society and Our Personal Finance
a. Importance of managing personal wealth, to both the individual and the society
b. Impacts of personal financial decisions on the society
c. Impacts of the economy and government economic policies on personal financial decisions
2. Basics of Personal Finance
a. Correct personal financial philosophy
b. Good financial habits
c. Financial Planning process
d. Financial values, goals, and strategies
e. Personal financial statements
f. Organization of financial records
g. Financial goals, budgeting and action plan
3. Income and Money
a. Money as a medium of exchange
b. Sources of income
c. Uses of income – spending, saving, tax and charity
d. Financial stages of life
4. Credit Cards and Consumer Loans
a. Advantages and disadvantages of using credit
b. Managing credit cards wisely
c. Sources of consumer loans
d. Instalment loans
e. Calculating interest on consumer loans
f. Impacts of improper use of loans on the society
5. Impacts of Personal Financial Decisions on the Economy
a. Levels of bad debt
b. Risk of borrowing
c. Threat of recession
6. Impacts of the economy and government economic decisions on personal financial decisions
a. Inflation and interest rates
b. Public spending and taxes
c. Economic cycle
7. Retirement Planning
a. Pressure on public finances from an aging population
b. Retirement plan
c. Medical and life insurance
d. Mandatory Provident Fund (MPF)
e. Annuities
f. I-bonds & silver bonds
g. Implications of some contemporary government policies related to retirement planning on the society
8. Scams
a. Different kinds of scams
b. Preventing scams
c. Social impacts of scams
1. Test (20 %)
2. Project (30 %)
3. Examination (50 %)
1. E. Thomas Garman, Raymond E. Forgue (2018), Personal Finance, 13th Edition, Cengage.
2. Joan S. Ryan, Christie Ryan (2016), Managing Your Personal Finance, 7th Edition, Cengage.
3. Kapoor, Dlabay, Hughes, Hart (2019), Focus on Personal Finance, 6th Edition, McGraw Hill.
4. Robert B. Walker, Kristy P. Walker (2017), Personal Finance, 2nd Edition, McGraw Hill.
5. 2018 CFA Program Level III Volume 2 Behavioral Finance, Individual Investors, and Institutional Investors, CFA Institute.
Other Information
1. The Chin Family, Managed by IFEC, https://www.thechinfamily.hk/web/en/
2. Mandatory Provident Fund Schemes Authority, http://www.mpfa.org.hk/tch/main/index.jsp
3. Investor and Financial Education Council, https://www.ifec.org.hk/en/index.html
