Introduction to Personal Financial Planning from edX

Introduction to Personal Financial Planning is made possible by the Brian and Sheila Jellison Family Foundation.

The Introduction to Personal Financial Planning course is designed for individuals to build financial literacy, one of the most pressing needs Americans face today. Financial decisions made by individuals impact the larger community in significant ways with pervasive cost due to financial mistakes. A recent study by the Financial Industry Regulatory Authority (FINRA) reveals over 50% of Americans have less than $10,000 saved for retirement. In addition, over 50% of Americans have no emergency fund, unable to cope with an unexpected car repair without borrowing funds. Financial literacy is an urgent need for many.

In this course, you’ll gain the basic building blocks of financial literacy to build a secure foundation for your future.

This fast-paced course prepares you to:

Build a financial plan through a step-by-step approach designed to meet your personal financial objectives
Understand financial planning essentials including income statements, balance sheets, and budgets
Recognize how planning and timing impact your personal wealth over a lifetime
Go deeper into your understanding of taxes and how tax decisions impact your wealth
Identify obstacles to sound financial decisions, including common cognitive errors and confirmation biases
Discover valuable resources including personal financial planners
Explore the scope and purpose of personal finance and its role in the broader spectrum of financial knowledge
Appreciate how positive reinforcement and research-based evidence impact your financial goals

Build your money management skills through course videos, selected short readings, and self-paced activities. You’ll gain practical skills, understand the core concepts of financial planning, and achieve a broader understanding of how personal financial planning contributes to a successful and fulfilling life.

Improve your financial situation, net worth, and retirement plan by registering for the Personal Finance Program.

What you'll learn

Through course videos, selected short readings, and self-paced activities, students gain both conceptual and practical knowledge of core concepts of financial planning to:

Define the scope of personal financial planning and understand its impact
Utilize the SMART financial planning method
Make progress toward your financial goals and avoid common mistakes
Evaluate the services of financial planning professionals
Classify assets and liabilities
Use a formula to determine net worth
Prepare and use financial statements, including budgets
Account for rates of return and opportunity cost
Determine the present value of single and multiple cash flows
Review taxation basics including filing, deductions, exemptions, credits, and audits
Understand options to defer or avoid taxes legally and responsibly
Get ahead in a low interest rate environment
Deepen your understanding of how money impacts your personal satisfaction

What's inside

Learning objectives

Define the scope of personal financial planning and understand its impact
Utilize the smart financial planning method
Make progress toward your financial goals and avoid common mistakes
Evaluate the services of financial planning professionals
Classify assets and liabilities
Use a formula to determine net worth
Prepare and use financial statements, including budgets

Account for rates of return and opportunity cost
Determine the present value of single and multiple cash flows
Review taxation basics including filing, deductions, exemptions, credits, and audits
Understand options to defer or avoid taxes legally and responsibly
Get ahead in a low interest rate environment
Deepen your understanding of how money impacts your personal satisfaction

Define the scope of personal financial planning and understand its impact
Utilize the smart financial planning method
Make progress toward your financial goals and avoid common mistakes
Evaluate the services of financial planning professionals
Classify assets and liabilities
Use a formula to determine net worth
Prepare and use financial statements, including budgets
Account for rates of return and opportunity cost
Determine the present value of single and multiple cash flows
Review taxation basics including filing, deductions, exemptions, credits, and audits
Understand options to defer or avoid taxes legally and responsibly
Get ahead in a low interest rate environment
Deepen your understanding of how money impacts your personal satisfaction

Syllabus

Week One An overview of Finance as a field of study and the Personal Financial Planning Process

Week Two Basic Financial Statements and Budgeting

Week Three Taxation Concepts and Tax Planning

Topics in Personal Finance Key topics and strategies for Personal Financial success

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores personal financial planning, a highly sought-after skill in today's financial climate

Taught by reputable instructors Todd Roberson and Kenneth Carow, who are recognized experts in personal finance

Develops practical financial skills that are highly relevant to personal finance management

Provides a comprehensive overview of essential financial planning concepts, including income statements, balance sheets, and budgets

Examines taxation basics, including filing, deductions, exemptions, credits, and audits

Provides guidance on how to identify and avoid common cognitive errors and confirmation biases that can hinder sound financial decisions

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Personal Financial Planning with these activities:

Review basic math skills

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Reviewing basic math skills can help you understand financial concepts such as compound interest and return on investment.

Browse courses on Math

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Practice adding, subtracting, multiplying, and dividing.
Solve simple algebra problems.
Use a calculator to check your answers.

Review 'Your Money or Your Life' by Vicki Robin

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Reviewing this book can help you understand the core concepts of personal finance including budgeting, saving, and investing.

View A 9-Step Path to Financial Independence on Amazon

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Read the introductory chapters to gain an overview of the book's main concepts.
Summarize the different principles and strategies discussed in each chapter.
Reflect on how you can apply the principles to your own financial situation.

Watch videos on personal finance topics

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Watching videos on personal finance topics can supplement your learning and help you understand complex concepts in a more engaging way.

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Search for videos on personal finance topics that you are interested in.
Watch the videos and take notes on the key points.
Discuss the videos with a friend or family member.

Five other activities

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Create a monthly budget

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Creating a budget can help you track your income and expenses, and make informed decisions about your spending.

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Gather your financial statements (bank statements, credit card statements, etc.).
List all of your sources of income.
List all of your expenses.
Subtract your expenses from your income to determine your monthly cash flow.
Identify areas where you can cut back on spending.

Join a study group

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Joining a study group can allow you to discuss course material with other students, get help with homework, and learn from different perspectives.

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Find a study group that meets your schedule and learning style.
Attend study group meetings regularly and participate in discussions.
Work together on homework assignments and projects.

Develop a financial plan

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Creating a financial plan can help you set financial goals, develop a strategy to achieve them, and track your progress.

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Identify your financial goals.
Research different investment options.
Create a budget that aligns with your goals.
Monitor your progress and make adjustments as needed.

Find a financial advisor

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Finding a financial advisor can provide you with personalized guidance and support on your financial journey.

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Interview potential financial advisors to find one who is a good fit for your needs.
Set clear goals and expectations with your financial advisor.
Review your financial plan and progress regularly with your financial advisor.

Contribute to a personal finance open source project

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Contributing to a personal finance open source project can allow you to apply your skills while learning from others and giving back to the community.

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Research different personal finance open source projects.
Find a project that aligns with your skills and interests.
Contribute to the project in a meaningful way.

Career center

Learners who complete Introduction to Personal Financial Planning will develop knowledge and skills that may be useful to these careers:

Financial Advisor

Financial Advisors help clients plan and reach their financial goals, which may involve retirement planning, investment advice, and tax planning. This course in Personal Financial Planning provides a solid foundation in these areas, equipping you with the knowledge and skills needed to succeed as a Financial Advisor. You'll learn how to create financial plans, manage investments, and minimize taxes, all of which are essential skills for this role.

See salaries and explore the career path for Financial Advisor

Financial Analyst

Financial Analysts research and analyze financial data to make recommendations on investments and other financial decisions. This course in Personal Financial Planning can provide a strong foundation for a career as a Financial Analyst by providing you with a comprehensive understanding of financial concepts and principles. You'll learn how to analyze financial statements, evaluate investments, and make sound financial decisions.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment Bankers help companies raise capital and advise them on mergers and acquisitions. This course in Personal Financial Planning can provide a strong foundation for a career as an Investment Banker by providing you with a comprehensive understanding of financial markets and investment strategies. You'll learn how to analyze companies, value assets, and structure financial transactions.

See salaries and explore the career path for Investment Banker

Portfolio Manager

Portfolio Managers manage investment portfolios for individuals and institutions. This course in Personal Financial Planning can provide a strong foundation for a career as a Portfolio Manager by providing you with a comprehensive understanding of investment strategies and risk management. You'll learn how to construct portfolios, allocate assets, and manage risk.

See salaries and explore the career path for Portfolio Manager

Actuary

Actuaries use mathematical and statistical techniques to assess risk and uncertainty. This course in Personal Financial Planning can provide a strong foundation for a career as an Actuary by providing you with a comprehensive understanding of financial concepts and risk management. You'll learn how to analyze data, develop models, and make sound financial decisions.

See salaries and explore the career path for Actuary

Insurance Agent

Insurance Agents sell and service insurance policies to individuals and businesses. This course in Personal Financial Planning can provide a strong foundation for a career as an Insurance Agent by providing you with a comprehensive understanding of insurance products and risk management. You'll learn how to assess risk, develop insurance plans, and meet the needs of clients.

See salaries and explore the career path for Insurance Agent

Tax Preparer

Tax Preparers help individuals and businesses prepare and file tax returns. This course in Personal Financial Planning can provide a strong foundation for a career as a Tax Preparer by providing you with a comprehensive understanding of tax laws and regulations. You'll learn how to prepare tax returns, calculate taxes, and minimize tax liability.

See salaries and explore the career path for Tax Preparer

Loan Officer

Loan Officers help individuals and businesses obtain loans. This course in Personal Financial Planning can provide a strong foundation for a career as a Loan Officer by providing you with a comprehensive understanding of lending practices and risk management. You'll learn how to evaluate loan applications, assess risk, and structure loan agreements.

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Budget Analyst

Budget Analysts plan and manage budgets for organizations. This course in Personal Financial Planning can provide a strong foundation for a career as a Budget Analyst by providing you with a comprehensive understanding of budgeting principles and practices. You'll learn how to develop budgets, track spending, and forecast financial performance.

See salaries and explore the career path for Budget Analyst

Auditor

Auditors examine and evaluate financial records to ensure accuracy and compliance with regulations. This course in Personal Financial Planning can provide a strong foundation for a career as an Auditor by providing you with a comprehensive understanding of accounting principles and auditing procedures. You'll learn how to review financial statements, assess internal controls, and identify financial risks.

See salaries and explore the career path for Auditor

Financial Planner

Financial Planners help individuals and families plan and manage their finances. This course in Personal Financial Planning can provide a strong foundation for a career as a Financial Planner by providing you with a comprehensive understanding of financial planning principles and practices. You'll learn how to develop financial plans, manage investments, and prepare for retirement.

See salaries and explore the career path for Financial Planner

Accountant

Accountants prepare and maintain financial records for organizations. This course in Personal Financial Planning can provide a foundation for a career as an Accountant by providing you with a comprehensive understanding of accounting principles and practices. You'll learn how to record transactions, prepare financial statements, and comply with accounting regulations.

See salaries and explore the career path for Accountant

Economist

Economists study and analyze economic data to make recommendations on economic policy. This course in Personal Financial Planning may provide some useful insights into economic principles and trends, which can be helpful for economists in understanding the broader economic context.

See salaries and explore the career path for Economist

Market Research Analyst

Market Research Analysts study consumer behavior and market trends to help businesses make informed decisions. This course in Personal Financial Planning may provide some useful insights into consumer behavior and financial decision-making, which can be helpful for Market Research Analysts in understanding the motivations and preferences of consumers.

See salaries and explore the career path for Market Research Analyst

Data Analyst

Data Analysts collect, analyze, and interpret data to help organizations make informed decisions. This course in Personal Financial Planning may provide some useful insights into data analysis techniques and financial data, which can be helpful for Data Analysts in understanding financial trends and patterns.

See salaries and explore the career path for Data Analyst