Money Management Skills

Overview

Course No. 5231
Learn the basic principles of money management with this course that teaches you how to build a financial plan to achieve your goals.

Money management can be intimidating. Fortunately, most of us only need to know a few basic principles to get our financial houses in order. Learn these principles in this comprehensive overview of what everyday people need to know to make good financial decisions. Using a scientific, evidence-based approach, Professor Finke shows how humans are hard-wired to make emotional decisions that often run counter to the best course of action when it comes to finances – and gives tips for how to avoid these common mistakes.

The goal of money management is to maximize our happiness at every stage of our lives. Whether you are a novice investor or a seasoned pro, starting your first job or contemplating retirement, these 24 straightforward lectures are an excellent primer for making successful financial decisions at every stage of your life. Professor Finke takes you on a tour of some of the most widely available financial products and tools, from mutual funds to life insurance to college savings accounts, and he offers evidence-based guidance for building a financial strategy.

After reviewing the psychology of decision-making – and how our instincts often steer us wrong when it comes to loss aversion, risk tolerance, and information overload – Professor Finke explains the “life cycle theory” of financial planning. This eye-opening theory offers a framework for making financial decisions based on the different stages of your life, and it will give you an entirely new perspective on money management.

The goal is simple: to get the most out of your money across time. While everyone’s life is different, the information and sound advice in this course will empower you to create your own financial plan to reach your goals. From setting financial goals and managing debt responsibly to investing in home ownership and preparing for retirement, Professor Finke provides a worry-free approach to handling all aspects of your financial life.

Course Lessons

01: Understanding Your Financial Brain

Begin your course with an examination of the brain to explore the tension between conscious decision-making and the automatic emotional response of our limbic systems. This tension affects many of our approaches to financial management, including our innate aversion to loss, our tolerance of risk, and our investment confidence.
Duration: 34 min

02: Managing Money with Life Cycle Theory

Reconsider your entire approach to your finances in this lecture. Life cycle theory is a framework for making financial decisions at different stages in your life, offering sound guidance for saving, borrowing, and investing across time.
Duration: 28 min

03: Basic Investing-Keep It Simple

You don’t have to be a financial guru to make wise investment choices. Learn basic rules of thumb for making solid financial choices, reviewing investment, risk, diversification, and portfolio building.
Duration: 28 min

04: The Key Financial Instruments

Tour the range of investment options, from liquid assets such as cash and checking accounts to long-term assets such as mutual funds, stocks, and bonds. Build a long-term investment strategy based on fees, returns, and tax obligations.
Duration: 30 min

05: How to Use Credit Optimally

Debt can be intimidating, but when used properly, it is a powerful tool. Learn about credit, credit history, and the variety of loans available, as well as bad habits to avoid.
Duration: 29 min

06: Investing in Education

Education offers one of the highest returns on investment, but it often involves student loans. Learn the key risks and potential tax advantages of investing in education.
Duration: 32 min

07: The Economics of Home Ownership

Examine home ownership as one of the most significant financial decisions we make. Learn when to buy versus rent and the basics of obtaining a mortgage, including types of loans and key considerations.
Duration: 30 min

08: Managing Risk with Insurance

Explore how insurance is about risk management. Understand the probability of loss, weighing costs versus potential expenses, and identifying critical coverage you need.
Duration: 30 min

09: Essential Tax Principles

Get a concise overview of the U.S. income tax system: how income is taxed, available credits and deductions, payroll taxes, and other taxes the average American pays.
Duration: 29 min

10: Saving for Retirement

When should you retire and how do you save enough? This lecture demystifies retirement savings, exploring 401(k)s, IRAs, and annuities to build a retirement strategy.
Duration: 33 min

11: Fundamentals of Estate Planning

Learn how to prepare your financial affairs to save your relatives from confusion regarding assets and liabilities, setting up trusts, and planning for end-of-life care.
Duration: 32 min

12: Putting Your Financial Plan Together

Wrap up the course by building a solid financial plan. Set up a cash-flow statement, prepare a budget for future expenses, and create a balance sheet for estate planning.
Duration: 35 min