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Personal Financial Planning 14th Edition

Personal Financial Planning (14th Edition)

Book Edition14th Edition
Author(s)Billingsley, Gitman
ISBN9781305636613
PublisherCengage Learning
SubjectFinance
Section 1-1: THE REWARDS OF SOUND FINANCIAL PLANNING
Section 1-2: THE PERSONAL FINANCIAL PLANNING PROCESS
Section 1-3: FROM GOALS TO PLANS: A LIFETIME OF PLANNING
Section 1-4: THE PLANNING ENVIRONMENT
Section 1-5: WHAT DETERMINES YOUR PERSONAL INCOME?
End of Chapter
Critical Thinking Questions 1
Critical Thinking Questions 2
Chapter 1, Section 1-1, TEST YOURSELF, Exercise 1-1
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What is a standard of living? What factors affect the quality of life?

Explanation

1) It refers to the material goods, level of wealth, necessities, and comfort available to a particular group of people. The Standard of living is assessed by easily quantified things such as poverty, income, cost of goods, and employment opportunity.




2.The factors that determine life quality include: the material living condition is classified into three categories i.e. consumption, income, and wealth. Therefore, better material living condition leads to a high life quality. Health is also a factor affecting life quality. Poor health will affect the life quality negatively. The ability to plan for any abrupt failing economy is referred to as economic safety. A population that has the ability to plan for the economy and physical safety will have a better life quality. Financial security is the stability of an individual financially. An Individual's financial stability is a factor of life quality. The more financially stable an individual is the better life quality they have. Life and job satisfaction of an individual are factors of life quality since good jobs leads to good well-being of an individual hence better life quality. 

Answer

1) It refers to the available quality and amount of services and goods to a particular population.


2) The factors include material living conditions, health, physical and economic safety, financial security and life and job satisfaction.

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