TOPIC 1 - 1.3 Flexible financial planning

TOPIC 1 - 1.3 Flexible financial planning

1. Financial planning means planning future expenditure and how it will be used. It will reflect their needs, wants and aspirations.

   • How people decide to finance this expenditure will depend on their anticipated future income, and their attitudes to savings, borrowing and other financial products, such as insurance.
   • Planning can help them to make sure that they have enough money to spend it on gifts or pay bills, it will also tell them how much they can afford to spend.

2. Many people use their monthly current account statements to make sure that they know what direct debits, standing orders and other regular payments are taken from their account each month.

   • They can also ensure that enough money is being paid into their account at the right time so that they can cover the regular outgoings that they make.

3. People need to plan to ensure they have money for unexpected events such as a car breakdown, ruined funiture but also for bills such as car servicing bills and mobile phone bills.

4. long-term financial planning takes into account the additional funds that may be needed to pay for when raising a family, for example supporting a child through their life.

   • this may also include planning to pay for a holiday and to plan for retirement and maybe retirement home fees.

5. Flexible financial planning means you wil have the savings to cover your nessecary cost such as bills but to also cover unexpected expenditure. you should be prepared for any situation and expect the unexpected.