Preface Part 1: Financial Planning  1. The Financial Planning Process  2. Measuring Your Financial Health and Making a Plan 3. Understanding and Appreciating the Time Value of Money 4. Tax Planning and Strategies Part 2: Managing Your Money 5. Cash or Liquid Asset Management 6. Using Credit Cards: The Role of Open Credit 7. Student and Consumer Loans: The Role of Planned Borrowing 8. The Home and Automobile Decision Part 3: Protecting Yourself with Insurance 9. Life and Health Insurance 10. Property and Liability Insurance Part 4: Managing Your Investments 11. Investment Basics 12. Investing in Stocks 13. Investing in Bonds and Other Alternatives 14. Mutual Funds: An Easy Way to Diversify Part 5: Life Cycle Issues 15. Retirement Planning 16. Estate Planning: Saving Your Heirs Money and Headaches 17. Financial Life Events—Fitting the Pieces Together Appendix A: Compound Sum of $1 598 Appendix B: Present Value of $1 600 Appendix C: Compound Sum of an Annuity of $1 for n Periods Appendix D: Present Value of an Annuity of $1 for n Periods Appendix E: Monthly Installment Loan Tables

The Ten Principles of Personal Finance are introduced in Chapter 1 and are touched upon in each of the following chapters to show students how to apply these principles to real-life situations. Action-Oriented Learning Objectives are included in the beginning of each chapter.  Stop and Think sections offer students additional insight into the material presented. Discussion Cases close out each chapter and provide students with real-life problems that tie together the chapter topics and require a practical financial decision. The Continuing Case of Cory and Tisha Dumont appears in each section of the textbook and gives students the opportunity to synthesize and integrate the many different financial concepts they’ve learned. Students will construct financial statements, analyze a changing financial situation, calculate taxes, measure risk exposure, and develop a financial plan. The Personal Finance Workbook contains tear-out worksheets to provide a step-by-step analysis of many of the personal finance decisions examined in the book. Instructors can use them for homework assignments or to guide students through actual decisions. Easy-to-follow advice is provided through proactive checklists that appear throughout the text and serve as useful learning tools. These boxes identify areas of concern and propose questions to ask when buying a car, getting insurance, investing in mutual funds, and performing other personal finance tasks. MyFinanceLab is a fully integrated online homework and tutorial system that helps students complete problems and receive immediate feedback and help. NEW! Behavioral Insights are covered in every chapter in a section titled “Principle 9: Mind Games, Your Financial Personality, and Your Money.” This section highlights how behavioral biases can sabotage financial well-being and demonstrates how an understanding of these biases can be used to avoid destructive financial behavior. NEW! Ten Financial Life Events are examined in Chapter 17 to tie together all of the concepts and tools presented in this book. The student will clearly see that in the course of a lifetime he or she will experience many events that will change their goals, affect their financial resources, and create new financial obligations or opportunities. NEW! Action Plans conclude each chapter in a new section titled “Principle 10, Just Do It.”  These sections contain concise directions encouraging the student to put into play the personal finance lessons learned in that chapter. REVISED! End-of-chapter materials have been redesigned to more closely match learning objectives.  In addition to a summary for the material covered under each learning objective, key terms are also defined within each learning objective.   Up-to-Date Information NEW! Dramatically expanded coverage of student loans and paying for college now covers almost half of Chapter 7.  This chapter helps students understand the consequences school choice and gives the an in-depth look at the world of student loans to help untangle the complexities and jargon associated with them. REVISED! The coverage of investing is simplified and completely revised by combining Investment Basics (formerly Chapter 11) and Securities Markets (formerly Chapter 12). NEW! Continued coverage of lessons from the recent economic downturn and the uneven recovery is included throughout the book where appropriate, including Chapters 1, 5, 7, 8, 11, 12, and 17. NEW! An increased emphasis on the use of the Internet and mobile apps is introduced and described when discussing various financial topics such as budgeting, record keeping, credit cards, investments, and retirement planning.   Also Available with MyFinanceLab® This title is also available with MyFinanceLab — an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.   This fully integrated online homework tool gives students the hands-on practice and tutorial assistance they need to learn finance skills efficiently. Ample opportunities for online practice and assessment in MyFinanceLab are seamlessly integrated into the content of each chapter and organized by section within the chapter summaries. All end-of-chapter Review Questions and Financial Planning Problems are available in MyFinanceLab.   Learning Catalytics™ is an interactive, student response tool that uses students’ smartphones, tablets, or laptops to engage them in more sophisticated tasks and thinking. Now included with MyLab & Mastering with eText, Learning Catalytics enables you to generate classroom discussion, guide your lecture, and promote peer-to-peer learning with real-time analytics. Instructors, you can: Pose a variety of open-ended questions that help your students develop critical thinking skills. Monitor responses to find out where students are struggling. Use real-time data to adjust your instructional strategy and try other ways of engaging your students during class. Manage student interactions by automatically grouping students for discussion, teamwork, and peer-to-peer learning.   Dynamic Study Modules: Not every student learns the same way and at the same rate. Now, thanks to advances in adaptive learning technology, you no longer have to teach as if they do.   Dynamic Study Modules assess student performance and activity in real time and, using data and analytics, personalize content to reinforce concepts that target each student's strengths and weaknesses. You can assign Dynamic Study Modules as homework and receive results right in your gradebook. And, because your students are always on the go, Dynamic Study Modules can be accessed from any computer, tablet, or smartphone.   Enhanced eText: Engagement in lecture is essential to student success, and continuing that engagement outside of class is just as critical. The new Enhanced eText found within Pearson’s MyLab keeps students engaged in learning on their own time, while helping them achieve greater conceptual understanding of course material.   Just as a great instructor brings course material to life, the Enhanced eText brings reading to life – with animations, interactive tutorials, and more. In the Enhanced eText, immediate practice suited to a variety of learning styles is just a click away.   Author-Created Videos and Animations  

Behavioral Insights are covered in every chapter in a section titled “Principle 9: Mind Games, Your Financial Personality, and Your Money.” This section highlights how behavioral biases can sabotage financial well-being and demonstrates how an understanding of these biases can be used to avoid destructive financial behavior. Ten Financial Life Events are examined in Chapter 17 to tie together all of the concepts and tools presented in this book. Student swill clearly see that in the course of their lifetime, they will experience many events that will change their goals, affect their financial resources, and create new financial obligations or opportunities. Action Plans conclude each chapter in a new section titled “Principle 10, Just Do It.”  These sections contain concise directions encouraging the student to put into play the personal finance lessons learned in that chapter. End-of-chapter materials have been redesigned to more closely match learning objectives.  In addition to a summary for the material covered under each learning objective, key terms are also defined within each learning objective. Dramatically expanded coverage of student loans and paying for college now covers almost half of Chapter 7.This chapter helps students understand the consequences school choice and gives the an in-depth look at the world of student loans to help untangle the complexities and jargon associated with them. The coverage of investing is simplified and completely revised by combining Investment Basics (formerly Chapter 11) and Securities Markets (formerly Chapter 12). Continued coverage of lessons from the recent economic downturn and the uneven recovery is included throughout the book where appropriate, including Chapters 1, 5, 7, 8, 11, 12, and 17. An increased emphasis on the use of the Internet and mobile apps is introduced and described when discussing various financial topics such as budgeting, record keeping, credit cards, investments, and retirement planning. Also Available with MyFinanceLab® This title is also available with MyFinanceLab—an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.