FINANCE 2606 / FIN2602 Mnf303-8-SUMMARY

MNF303-8 1 Learning outcomes STUDY UNIT 1- Personal Financial Planning pg 4-6 1. Explain the importance of personal financial planning 2. Recognise their position in the financial planning cycle 3. Identify the different steps in the personal financial planning process 4. Explain the advantages of personal financial planning 5. Recognise the different personal financial planning areas STUDY UNIT 2- the measurement and assessment of personal financial performance pg 6-9 6. Assess annual financial statements 7. Explain the relationship between an income statement and a personal budget 8. Recognise the principles of preparing a budget 9. Draw up their own household budget 10. Measure their own financial performance 11. Explain the importance of having a personal budget 12. Identify the advantages of keeping an effective household record system STUDY UNIT 3- the Time Value of Money pg 9 13. Explain the meaning of the time value of money 14. Demonstrate different calculations regarding the time value of money 15. Demonstrate the influence of time value on personal finances STUDY UNIT 4- Credit Planning pg 9-17 16. Explain the importance of credit planning 17. Identify the problems that result from making excessive use of credit 18. Explain how to apply for credit 19. Identify the steps involved in handling a debt crisis 20. Apply debt self-management 21. Evaluate banking services 22. Explain the functioning of credit services 23. Examine a credit agreement critically 24. Identify and quantify the different aspects of buying or selling a car 25. Explain the use of e-shopping and e-banking 26. Define micro lenders and the role of the NCR 27. Ensure that their name never appears on the credit information bureau's black list STUDY UNIT 7- Starting a Business: Entrepreneurship pg 17 28. Define what is meant by the concept “entrepreneur” 29. Describe a business opportunity 30. Explain the pitfalls associated with a family business 31. Evaluate the different forms of business ownership 32. Explain the outlay, content and advantages of a business plan 33. Explain different methods of financing a small business 34. Explain related matters such as location; registration; administration; insurance; employment; your bank; business problems; legal matters; business advisers; succession planning; e-business; business management and growth and importing and exporting STUDY UNIT 8- Buying a business pg 18 35. Evaluate an existing business enterprise as an investment opportunity 36. Assess the financial performance of an existing business 37. Draw up annual financial statements for a business (using various documents) 38. Identify problems associated with buying an existing business 39. Evaluate the purchase price of an existing business 40. Evaluate the location of a business in order to rent, buy, and build or to work from home STUDY UNIT 9- Buying a franchise pg 18-19 41. Define the concepts “Franchise”. ”Franchisor”, “franchisee” and “franchise package” MNF303-8 2 42. Evaluate a franchise opportunity 43. Explain how to finance a franchise STUDY UNIT 10- Estate Planning pg 19-26 44. Define the meaning of the concept “estate planning” 45. Explain the importance of timely and continuous estate planning 46. Identify the different steps in the estate planning process 47. Recognise estate-planning pitfalls and identify methods for avoiding them 48. Recognise the influence of their lifestyle on their estate planning 49. Explain the influence of lifestyle on personal finances 50. Identify the different steps in the administration of an estate (winding up) 51. Draw up a cohabitation agreement, an antenuptial contract, a will and a divorce settlement 52. Identify the uses of a trust 53. Explain the effect of a matrimonial property regime on estate planning and personal finances 54. Identify techniques for decreasing the size of their estate and avoiding paying estate duty STUDY UNIT 11- Investment planning pg 27- 55. Evaluate investments by means of general investment principles 56. Evaluate investments according to different investment criteria 57. Explain how to avoid investment pitfalls 58. Choose a broker 59. Explain the functioning of