1. Chapter 3 Income and Expenditure

10. Financial Management Through the Life-Cycle (cont.) Life-cycle Activities Preteens Children are highly dependent on parents for existence and most decision making. There is little need to develop personal financial objectives Interest in savings developed during this period Teens Teenagers attempt to establish their identity Confronted with additional financial objectives Decision on life-style, protection & probably investment become important

11. Financial Management Through the Life-Cycle (cont.) Life-cycle Activities Singles Years between secondary school and marriage. This period lays the foundation for future periods and objectives, thus extra care must be taken in decision making. No additional objectives are introduced Young married The newly-wed discover economics involved in trying to live more cheaply using two heads. Family planning and addition of new family members. Initial plans for retirement and estate planning should be developed

12. Financial Management Through the Life-Cycle (cont.) Life-cycle Activities Middle-age married At this stage, the family objectives of protection , savings and certain investment needs such as education have been fulfilled . Concern for retirement and estate planning becomes paramount Retirement Many people looking forward to a different way of life centered around recreation and relaxation. The ease or difficulty of this transition is a function of the financial success of earlier retirement plans and the psychological preparation of the retiree