Economic factors affecting personal financial planning

Financial Management and Culture: Danes, Jennifer Garbow, and Becky Hagen Jokela Study investigates distal and proximal contextual influences of the American Indian culture that affect financial decisions and behaviors. Primary household financial managers were interviewed. Findings indicated that American Indians view many concepts differently than conventional disciplinary meanings.

Economic factors affecting personal financial planning

Gross domestic product The economic growth rate is calculated from data on GDP estimated by countries' statistical agencies. The rate of growth of GDP per capita is calculated from data on GDP and people for the initial and final periods included in the analysis of the analyst.

Determinants of per capita GDP growth[ edit ] In national income accounting, per capita output can be calculated using the following factors: Productivity improving technologies economic history Economic growth has traditionally been attributed to the accumulation of human and physical capital and the increase in productivity and creation of new goods arising from technological innovation.

Increases in productivity are the major factor responsible for per capita economic growth — this has been especially evident since the midth century. Most of the economic growth in the 20th century was due to increased output per unit of labor, materials, energy, and land less input per widget.

The balance of the growth in output has come from using more inputs. Both of these changes increase output. The increased output included more of the same goods produced previously and new goods and services. During the Second Industrial Revolutiona major factor of productivity growth was the substitution of inanimate power for human and animal labor.

Also there was a great increase in power as steam powered electricity generation Economic factors affecting personal financial planning internal combustion supplanted limited wind and water power.

By Michael Hobbes

Other productivity improvements included mechanized agriculture and scientific agriculture including chemical fertilizers and livestock and poultry management, and the Green Revolution. Interchangeable parts made with machine tools powered by electric motors evolved into mass productionwhich is universally used today.

Real food prices fell due to improvements in transportation and trade, mechanized agriculturefertilizersscientific farming and the Green Revolution. Great sources of productivity improvement in the late 19th century were railroads, steam ships, horse-pulled reapers and combine harvestersand steam -powered factories.

By the late 19th century both prices and weekly work hours fell because less labor, materials, and energy were required to produce and transport goods.

However, real wages rose, allowing workers to improve their diet, buy consumer goods and afford better housing. New goods and services included television, air conditioning and commercial aviation aftercreating enough new demand to stabilize the work week.

Productivity in the United States grew at an increasing rate throughout the 19th century and was most rapid in the early to middle decades of the 20th century. Demographic changes[ edit ] Demographic factors may influence growth by changing the employment to population ratio and the labor force participation rate.

Women with fewer children and better access to market employment tend to join the labor force in higher percentages. There is a reduced demand for child labor and children spend more years in school.

The increase in the percentage of women in the labor force in the U. Spending wave Other factors affecting growth[ edit ] Political institutions, property rights, and rule of law[ edit ] See also: These included new laws favorable to the establishment of business, including contract law and laws providing for the protection of private property, and the abolishment of anti-usury laws.

Enforcement of contractual rights is necessary for economic development because it determines the rate and direction of investments. When the rule of law is absent or weak, the enforcement of property rights depends on threats of violence, which causes bias against new firms because they can not demonstrate reliability to their customers.

Thanks to the underlying homogeneity of its land and people, England was able to achieve a unified legal and fiscal system since the Middle Ages that enabled it to substantially increase the taxes it raised after Many of these intermediate level institutions relied on informal private-order arrangements that combined with public-order institutions associated with states, to lay the foundations of modern rule of law states.

In many urban areas the poor "invade" private or government land to build their houses, so they do not hold title to these properties. Much unregistered property is held in informal form through various property associations and other arrangements.

Reasons for extra-legal ownership include excessive bureaucratic red tape in buying property and building.

Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts. Equity Impacts. Transport Model Improvements tend to better identify the full impacts of transportation decisions, including external impacts such as traffic congestion, parking costs, accident risks and pollution emissions, and so can help reduce these impacts. Factors that differentiate men and women financial planners That being said, let us discuss the influences that could be affecting the financial planning strategies of men and women. There are three important factors affecting their differences. Which economic factors most affect the demand for consumer goods? that most affect the demand for consumer goods are employment, wages, prices/inflation, interest rates and consumer confidence.

In some countries it can take over steps and up to 14 years to build on government land. Other causes of extra-legal property are failures to notarize transaction documents or having documents notarized but failing to have them recorded with the official agency. Unregistered businesses and lack of accepted accounting methods are other factors that limit potential capital.

Specifically, "democracy increases future GDP by encouraging investment, increasing schooling, inducing economic reforms, improving public goods provision, and reducing social unrest. However, surprisingly few research empirically examine and quantify entrepreneurship's impact on growth.

This is due to endogeneity - forces that drive economic growth also drive entrepreneurship.

Introduction

In other words, the empirical analysis of the impact of entrepreneurship on growth is difficult because of the joint determination of entrepreneurship and economic growth. A few papers use quasi-experimental designs, and have found that entrepreneurship and the density of small businesses indeed have a causal impact on regional growth.

Capital is subject to diminishing returns because of the amount that can be effectively invested and because of the growing burden of depreciation.

In the development of economic theory the distribution of income was considered to be between labor and the owners of land and capital.Economics (/ ɛ k ə ˈ n ɒ m ɪ k s, iː k ə-/) is the social science that studies the production, distribution, and consumption of goods and services..

Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions.

Continue your personal financial journal by describing how other micro factors, such as your present family structure, health, career choices, and other individual factors, are affecting your financial planning.

Four major factors influencing personal finances – ING research The financial crisis, political themes, new technologies and consumption options have already affected the way individuals spend. The way we manage money is in flux ‒ and research highlights four main forces changing money choices.

Cultural factors are one of the most important factors that influence the buying decision of consumers. Cultural factors comprises of the set of values of a particular community or a group of individuals.

Economic Factors Affecting Personal Financial Planning. B Personal Financial Planning Worksheet Directions: Based on your readings and discussions in class this week, answer the following questions completely.

1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called: B a. Developing goals.

Economic factors affecting personal financial planning

Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts. Equity Impacts. Transport Model Improvements tend to better identify the full impacts of transportation decisions, including external impacts such as traffic congestion, parking costs, accident risks and pollution emissions, and so can help reduce these impacts.

The economic impact of 'Brexit' - Woodford Investment Management Ltd