Individual means that the concrete situation with all its facets has to be centred in
the planning, and that it is forbidden to make generalisations. Networked means: All of its
data??™s effects and interdependencies have been considered and structured into a financial
plan. The output has to be coherent and clear.
Analysis Model
The main task of an analysis model for personal financial planning is to help financial
planners to consult individuals to properly manage their personal finances. Proper personal
financial planning is so important because many individuals lack a working knowledge of
financial concepts and do not have the tools they need to make decisions most advantageous
to their economic well-being. For example, the Federal Reserve Board??™s Division
of Consumer and Community Affairs (2002) stated that ???financial literacy deficiencies can
Braun & Schm dt
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affect an individual??™s or family??™s day-to-day money management and ability to save for
long-term goals such as buying a home, seeking higher education, or financial retirement.
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