Lesson 1-5: Importance of Financial Planning
The World Around Us Affects our Personal Financial Planning
Personal financial planning is impacted
by a lot of variables some of which you can control, but many of them are out
of your control. In fact, not only can
factors within the United States impact your financial plan, but global factors
will also impact your plan.
Within the U.S.:
o Business, labor, and the government are all economic influences on financial planning.
o The Federal Reserve affects the U.S. economy by keeping interest rates and prices at appropriate levels in attempt to maintain an adequate money supply for businesses and consumers.
Outside the U.S.:
o Globalization- Business and investment opportunities have rapidly moved beyond domestic markets.
o The world has seen a marked increase in trade and cultural exchange in the recent future.
o Jobs are being moved overseas
- Cheaper labor
- Cheaper goods
Government Resources (Review the links to the following websites to see additional information on these issues)
