Personal Financial Life Cycle Flashcards
What is a personal financial life cycle?
A personal financial life cycle describes the financial resources we require to meet our needs and wants at different stages in our life.
What are the 5 stages?
Dependent, Independent, Growth, Maturity and Retirement.
What is the Dependent stage?
The time in our life when we depend on other people to provide for our essential needs and wants.
What is the Independant stage?
The time in our life when we no longer rely on other people to provide the money we need to achieve the majority of our needs and wants.
What is the Growth stage?
The time in our life when we become more settled in our working and family life.
What is the Maturity stage?
The time in our life when we have reached the top of our career and no longer expect to be promoted or given increased responsibility.
What is the Retirement stage?
The time in our life when we have stopped working and instead spend a lot of our time on other pursuits and interests.
What does the personal life cycle look like on a graph
