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Topic 7 - Coggle Diagram

- - - - We might first consider our goals in life. Some goals will require a certain amount of saving and planning for the future. For example, if one of your goals is to own your own home, then you will have to make particular financial decisions if that is to happen: you will have to save enough money for a deposit and then find a mortgage (house loan) that you can pay off over a period of time
    - - In addition, you might have short-term, medium-term and long-term goals that will affect how you manage your money. The extent to which you can achieve these goals might be affected by particular financial constraints, such as the size of your income or the amount that you have to put aside for expenses. This makes prioritising necessary. You may have to decide which of your goals are more important and make a trade-off – ie you might have to give up one thing to be able to afford something else
      - This text discusses the importance of personal financial choices and how they can impact individuals, society, and the economy as a whole. It emphasizes that the economy and personal finances are interdependent, meaning changes in one area can affect the other. Good financial choices involve living within one's means, reducing bad debt, increasing savings, and contributing positively to the economy. Poor financial choices, such as high-interest loans and unaffordable borrowing, can lead to high levels of bad debt, increased risk, and economic instability. The text also mentions the impact of factors like culture and religion on financial decisions and briefly explores different types of borrowing. Finally, it presents a scenario involving a mobile phone purchase to illustrate the concept of trade-offs and decision-making in personal finance.