Answer to Question #139679 in Finance for don

Question

Suggest ONE common financial goal for each of the following life situations:
(a) a final year undergraduate student
(b) a young couple with a new-born baby
(c) an older couple (age 50+) with no dependent child
(d) a single mother with a pre-school son
Briefly explain your answers.

Answer 1

solution

(a) Raising capital to start a business: the student may want to venture into self employment. This may require funding

(b) Savings plan to educate the baby: the parents may want to prepare themselves by making early savings towards the expected future cost of educating their child

(c) planning for income on retirement: the couple may want to invest in a product eg annuity that guarantees regular income after they retire

(d) the single mother may require finances to hire child care services for when she may not be available due to factors such as work. This may require financial planning to accommodate the expenses