There are at least three major areas that affect financial decisions. These are:

•   Life situations such as income, age, household size, and health

•   Personal values

•   Economic factors such as prices, interest rates, and employment opportunities

The major elements of financial planning are obtaining resources, planning, saving, borrowing, spending, managing risk, investing, and retirement and estate planning.

•   What are some of the social and economic factors that have increased the importance of personal financial planning today? Give an example.