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SMM final exam summary ver1.0 - Coggle Diagram
SMM final exam summary ver1.0
Personal financial statements
Components of financial planning
Financial planning and process
The process of managing your
money to achieve personal economic satisfaction
Advantages
Increase control of one’s financial affairs
Improved personal relationships
Increased effectiveness in obtaining, using and protecting financial
resources
Sense of freedom from financial worries
6 steps procedure
Identify alternative courses of action
Evaluate your alternatives
Develop your financial goals
Create and implement your financial action plan
Determine your current financial situation
Review and revise your plan
financial goal
TYPES OF FINANCIAL GOALS
Influenced by the time frame in which you want to achieve your goals
Influenced by the financial need that drives your goals
TIMING OF GOALS
Short-term, intermediate and
long-term goals
Long-term goals should be planned in coordination with short-term and intermediate goals
INFLUENCES ON FINANCIAL PLANNING
Life situation and personal values
Economic factors *
Economy includes different institutions
Federal Reserve Bank and it’s role in the economy (Bank Negara)
Study of how wealth is created and distributed
Forces of Supply,
Demand and prices
Global influences
Economic conditions *
Consumer
The demand for goods and spending services by individuals and households
Consumer prices
The value of the dollar changes in inflation
Interest rates
The cost of money; cost of credit when you borrow;
return on your money when you save or invest
GOAL SETTING GUIDELINES
indicate the action to be taken
Have time frame
stated in specific terms
realistic
Unit 4 & 6
AKPK
Offers these financial services to individuals, free of charge
Financial Education
provides financial education materials on the proper use of credit and
basic money management as well as tips on how to use credit responsibly
Financial Counselling
offers counselling and advice on managing your finances wisely
– from budgeting, money management and credit related issues
Debt Management Programme
Our counsellors will work with you to develop a personalised debt repayment plan in consultation with your financial service providers.
NCD
No-claim-discount
The premium payable may be reduced if you have no-claimdiscount (NCD) entitlement.
NCD is a
‘reward’ scheme
for you if no claim was made against your policy during the
preceding 12 months of policy.
Different NCD rates are applicable for different classes of vehicles.
For a
private car,
the scale of NCD ranges from 25% to 55% as
provided in the policy.
Excess
Types of excess applicable
Compulsory excess of RM400, if your vehicle is driven by;
a person named in your policy who is under the age of 21,
the holder of a provisional (L) driving licence or
the holder of a full driving licence of less than two years.
a person not named in your policy or
Other excess
applicable at the discretion of your insurance
company and in some cases, no excess is imposed
Also known as a ‘deductible’.
This is the amount of loss you have to bear before your
insurance company will pay for the balance of your vehicle damage claim
Adult life cycle stage
Marital status, household size, and employment
Major events; Graduation, marriage, career change, children, retirement, etc
Life situation influences on your financial decisions
Marital Status (Single, separated, married, widowed)
Employment situations
Age
Number and age of Household Members
