Planning Personal Finance Essay Example | Topics and Well Written Essays - 2000 words

Planning Personal Finance - Essay Example anced understanding with respect to the manner through which personal financial decision-making is affected as well as the tactics and tools that can and should be integrated with at each and every stage of the financial planning cycle of the individual investor (Irving, 2012). Of all of the understandings that will be represented within this brief analysis, perhaps the most important is with respect to understanding the fact that the most relevant financial products that should be considered at every stage of life are neither uniform nor static. What is meant by this is that the changes in the overall financial outlook of the individual investor, the changes in career, the changes in wealth, the changes in savings, the focus upon different aspects of resources, and the manner through which all of these focuses evolve throughout the lifetime of the individual investor. The first and most obvious stage of the typical financial lifecycle of an individual is with regards to early childhood. Within this particular stage, few if any resources exist for the individual to promote their own financial independence and the future. However, within this particular stage, the individual is presented with an understanding of the value of money and needs to which it can be earned, state, and instruments such as interest can be engaged as a means of maximizing the overall amount of money that the individual has. Rather than merely glossing over this particular stage of financial lifecycle development, it is extraordinarily important that stakeholders within society seeks to engender a level of understanding within young people of this demographic that money has been innate and tacit value that must be understood and appreciated. Moreover, by choosing to make wise financial decisions, the value and overall utility that the money can bring to the individual is also a tool that can be understood and utilized within this particular period of life (O’Neill, 2011). Whereas many