Instructions My Decision-Making Plan for Personal FinanceApply what you have learned about money and financial literacy including at least three concepts from your reading to: Create a 20-year plan...

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Instructions
My Decision-Making Plan for Personal FinanceApply what you have learned about money and financial literacy including at least three concepts from your reading to:

  • Create a 20-year plan for future success to include specific information on where and how you save and spend (based on learning in this unit).

  • Discuss how financial goals relate to your personal motivation.

Your submission should be two to three pages in length, and should include your textbook and at least one other source as a reference. APA formatting is required.
This is the textbook - This unit goes over chapter 6.Moritsugu, J., Vera, E. M., Jacobs, J. H., & Kennedy, M. (2017).Psychology of adjustment: The search for meaningful balance. SAGE. https://online.vitalsource.com/#/books/9781506358796


Unit VI Lesson Slide 1: Unit VI Slide 2: Does it surprise you to see an entire lesson in this course devoted to money? A part of the reason this textbook was selected by your faculty was that it included a section on the relationship with money, which impacts modern living, like it or not. It may be said that financial literacy is a skill lacking in American culture and in our educational system. What is your own experience with budgeting, planning for the future, and deciding how to allocate your resources? Slide 3: We can begin exploring our relationship with money in a brief discussion of behavioral economics, which examines how we choose to spend our resources (Moritsugu, Vera, Jacobs & Kennedy, 2017). We find that context can play a role as well in terms of how money was viewed in our family of origin. A lack of available funds can cause stress for people and their relationships, but does more automatically equate to happiness? We will address this concept in a little while, but, for now, let’s answer that question by saying “It is complicated.” Money is a human construct, which has been around in its present form for approximately 3,000 years (Moritsugu et al., 2017). Social science sees our valuation of money as a learned concept from the behaviorist school of thought. As you read, you might recognize concepts like Pavlovian stimulus, Skinnerian reinforcers, or observational learning from Albert Bandura. Think back to your early experiences with money and how your parents and/or guardians treated the topic. Was money something from which you were sheltered (i.e., they did not want you to worry), or was money discussed as a learning experience? Not surprisingly, we find that children who were raised with some discussion of age-appropriate money matters have a better chance of becoming financially literate adults. We must also examine these topics in light of socioeconomic status. While some Americans choose to believe in a free and equal society, it would be hard to say that there are not definite “haves” and “have-nots” out there. Defining social class is difficult given our egalitarian ideal, though your textbook suggests using some mixture of education, occupation, income, accumulated wealth, and familial power (Moritsugu et al., 2017). After this primer on personal economic principles, let us turn our attention to the decision-making process of money. Slide 4: Behavioral economics investigates how we make our choices about money and where we place value (Moritsugu et al., 2017). To some extent, this value is relative and subject to change. Perhaps the basics of food and housing take up a large part of your budget and remove some of the choice from this equation, but even then, you are choosing to allocate what resources you do have to provide for basic needs. There is also the theory of decision-making that states small or regular choices might be made quickly as opposed to a rational, thought-out process processes (Kahneman as cited in Moritsugu et al., 2017). Perhaps the extra shot of caramel does not impact your bottom line in the extreme, but you hopefully spend much more time researching your next vehicle. Emotion as well as fatigue can certainly play roles as well, and many of us have that friend who will charge anything after reaching the two-drink minimum. Slide 5: Speaking of emotion, you are certainly familiar with the billion-dollar advertising industry; if not, it is still familiar with you. Perhaps applying psychological principles to business is a skill that has been mastered a little too well. Your textbook offers tips on recognizing sales techniques such as free shipping and, again, slowing down to make good choices about how to spend your resources (Moritsugu et al., 2017). Have you ever heard that the anticipation of an event can be more exciting than the actual event? Some people enjoy planning for an upcoming vacation or even a 3-day weekend as much as they do the actual time away. Perhaps you can challenge yourself to put this concept to use so you do not fall victim to durability bias, which states that sometimes we overestimate how, say, a new pair of shoes can change the rest of our lives. Slide 6: The next concept also takes a moment to digest—the contrast between emotional attachments to an object as opposed to what it can actually do for us. We can also examine what we view as a gain or loss with every transaction (Moritsugu et al., 2017). If you focus on what you can gain (that steak dinner) instead of what you will lose ($35 + gratuity), you might be more of a buyer. If the loss of cash concerns you, then you might lean toward savings as a modus operandi. Click on the challenge [on the slide]: Next time you find yourself in a situation like this, could you focus on the freedom that money in your pocket provides and reevaluate a purchase? Popular thought is that millennial spenders might be doing just that— focusing more on freedom and experience than the purchases of higher-end luxuries. Slide 7: Credit cards and other forms of debt certainly play into our personal relationship with money and many other aspects of life. Perhaps credit—such as the student loan needed to take this course—can be used for a long-term gain; sometimes, we have to rely on credit for emergency situations as well. Outside of a mortgage payment, transportation to and from work, or money needed for education, which will expand earning options, debt can certainly create a vicious cycle of small payments, high interest, and more reliance on buy now/pay later. One danger of credit card debt is so simple that it could easily be overlooked. When you choose to charge it, you automatically have a month or more before any payment comes due (Moritsugu et al., 2017). Who would not like that idea, that is, if we are using our quick, emotionally-charged process of decision-making? It takes more time to examine the true cost of a car, a sweater, or a latte when we stop to put it in the big picture. Slide 8: In stalwart defiance of spending and debt is the concept of saving. Saving money for the future does not sound exciting, and, for some of us, it might not be a realistic possibility today. Hopefully, when you complete your current course of study, you will be better poised to create lasting savings goals for your future. You have likely heard the axioms like “Invest your bonus,” or “Pay yourself first;” if not, any number of reputable publications can open you to these concepts. Perhaps you can make the anticipatory joy of saving a more stable part of your own personality. Research indicates that economic socialization is an important factor in savings habits (Moritsugu et al., 2017). Think back to the discussion of parents either handling money matters privately or bringing you into the process as a child or young adult; the benefit of learning these habits early can certainly influence savings habits as you mature. You will read that socioeconomic status (SES), education, and the race/ethnicity of your family can impact your own attitudes and aptitudes toward savings. All of these are factors; now, your job is to take this information and incorporate it into a sound decision-making process that works for you. One tool that science suggests has real merit for saving and goal- setting is called self-matching, or identifying with your future self (Moritsugu et al., 2017). In psychology, we might discuss recognizing the innocent child inside everyone; in this scenario, we are doing the opposite and imagining our future self and how we want to treat it. Picturing your future self with a few more gray hairs may actually help you delay a little bit of pleasure now so that you can have more in the future. Alternatively, those of you with children might consider their futures and the hopes you have to support them as they grow. Do whatever it takes to build those neural connections, and start looking forward! Slide 8: Perhaps not surprisingly, some of these concepts are related to feelings of personal power (Moritsugu et al., 2017). Just think if the next time you need new tires, this were not a struggle—you have planned for your rainy day and can write a check for their purchase. This is the power you have generated through your own decision-making process. If a set of new tires is not in the cards today, it might be the next tank of gas or the next birthday present for a child; the point is that by planning ahead when possible, you do hold more power. As an educated person, you also have the ability to look outside of this textbook or class lecture and become more financially literate. Is there a 401(k) at work, and what does employer match mean to you? Could regular savings, either through work, a small bank account, or a jar for spare change cause less pain now but more freedom in the future? Hint: Social science says yes. Do not overlook the power of small, automatic savings as discussed on page 236 of your textbook. Slide 9: As this is not a class on personal finance, though maybe we all should take one, let’s tie the discussion back to a psychological discussion of money and happiness. You should not come away from this unit thinking that money is the biggest focus of your life; rather, you can take some control over money to make your life better. What do you think of the statistic that money can buy some measure of happiness up to about $75,000 a year? Many of us were taught that money does not buy happiness, but the concept referenced here is referring more to the freedom from stress that money affords. If Clark has high expenses but
Answered Same DayMar 05, 2021

Answer To: Instructions My Decision-Making Plan for Personal FinanceApply what you have learned about money and...

Dr. Vidhya answered on Mar 05 2021
131 Votes
Running Head: MY DECISION-MAKING PLAN FOR PERSONAL FINANCE        1
MY DECISION-MAKING PLAN FOR PERSONAL FINANCE                2
MY DECISION-MAKING PLAN FOR PERSONAL FINANCE
Table of Contents
Brief Overview    3
Twenty Year Plan    3
Money and Motivation    4
References    6
Brief Overview
Money is the backbone of the economical alleviation at every level of life. In fact, as per the reading observation, money should be seen upon the grounds of human construct, giving it the power to control the financial actions of human being (Moritsugu, Vera, Jacobs & Kennedy, 2017). From the perceptions of various social theories, it is evident that the money has divided the societies into various groups and classes.
These classes are subjected to share the society as per the ‘money based strength’ they have. Regardless of the money, the centralization of political governance has remained in the hands of a handful authorities in the past and even in the present though, America is one of the strong believers in democracy (Moritsugu et al., 2017). The following is a brief outline of the twenty-year plan of gaining personal financial assets and expenditures that are likely to happen.
Twenty Year Plan
As per the observations made on the assigned reading, it is evident that one has to be in the perfect frame of mind to gather enough money to meet the basic needs of life at first. The twenty-year plan will be divided into four different phases of earning and spending. At first, the employment based hard work will be done with a view to gain financial stability; in this phase of life, the expanses will be managed...
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