Financial Management
This statement compares a person's assets and liabilities at a single point in time to determine their overall financial position
What is a net worth statement?
Planners calculate this figure by subtracting total expenses from total income to see if someone has a surplus or deficit
What is net cash flow?
This ratio measures what portion of an individual's income is left after expenses - a key indicator of their ability to save
What is personal savings rate?
A planner explains how buying assets, paying down debt, or changing spending habits will affect this over time
What is net worth?
Professional planners are expected to assess whether someone has enough liquid resources set aside for unexpected funds - this is critical for maintaining which type of finance reserve
What is an emergency fund?