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ECTS Course Overview



Principles of Personal Finance

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code154-0554/01
Number of ECTS Credits Allocated3 ECTS credits
Type of Course Unit *Choice-compulsory
Level of Course Unit *First Cycle
Year of Study *
Semester when the Course Unit is deliveredSummer Semester
Mode of DeliveryFace-to-face
Language of InstructionEnglish
Prerequisites and Co-Requisites Course succeeds to compulsory courses of previous semester
Name of Lecturer(s)Personal IDName
KOR21Ing. Kateřina Kořená, Ph.D.
Summary
The course is focused on achieving basic knowledge of personal finance. The aim of this course is to get students acquainted with the principals of the financial literacy, i.e. personal financial planning and using of the appropriate financial products.
Learning Outcomes of the Course Unit
The aim of this course is to get students acquianted with the principals of the financial literacy, i.e. personal financial planning and using of appropriate financial products.
The students will be able to:

- understand basic securities,
- compare financial products,
- understand principles of investment including collective investment,
- define the work of financial adviser,
- create own personal investment portfolio.
Course Contents
Financial investment,investment process.Financial planning, typical family financial targets.
Family finance, household balance sheet and cash-flow, household savings. Household budget, importance of nest egg and insurance.
Financial mathematics, time value of money, basic household situation application.
Insurance products, life and disability insurance, non-life insurance,most frequent insurance mistakes.
Pension system, pension funds. Pension system reform. Advantages and disadvantages of investing in pension funds.
Securities – bonds, shares, mutual fund shares. Short-term and long-term investing. Household portfolio of securities.
Collective investment, investing in mutual funds. Open-ended and close-ended funds. Types of funds.
Bank products, deposit accounts, credit products, mortgage loans, consumer lending, payment cards, building loans. Good and bad debt.
Principles of financial portfolio creation, diversification, dollar cost averaging.
Alternative investments - yield, risk, liquidity. Investing in tangible assets (real estates, commodities, collectibles).
Investment psychology, analysis of the investor behavior in the financial markets.
The role of the financial advisor, the ethical treatment of the client, ethics and information, ethical reporting, ethics in financial markets.
Recommended or Required Reading
Required Reading:
KAPOOR, Jack.R., DLABAY, Les.R. and HUGHES, Robert.J. Personal Finance. 10th ed. McGraw-Hill/Irwin, 2011. 768 p. ISBN 978-0073530697.
MISHKIN, Frederic S. and Stanley G. EAKINS Financial Markets and Institutions. 6th ed. Boston: Pearson Prentice Hall, 2009. xxxix, 675 p. ISBN 978-0-321-37421.
KAPOOR, Jack.R., DLABAY, Les.R. and HUGHES, Robert.J. Personal Finance. 10th ed. McGraw-Hill/Irwin, 2011. 768 p. ISBN 978-0073530697.
MISHKIN, Frederic S. and Stanley G. EAKINS Financial Markets and Institutions. 6th ed. Boston: Pearson Prentice Hall, 2009. xxxix, 675 p. ISBN 978-0-321-37421.
Recommended Reading:
CALLAGHAN, George S., Ian FRIBBANCE and Martin HIGGINSON, Personal Finance. 2nd ed. Basingstoke: Palgrave Macmillan in association with The Open University, 2012. 487 p. ISBN 978-0-230-34811-0.
CLASON, George S. The Richest Man in Babylon. Great Britain: Amazon, 2007. ISBN 978-1-5304-3902-7.
CHAMBERS, Donald R., Mark Jonathan Paul ANSON, Keith H. BLACK and Hossein KAZEMI. Alternative Investments: CAIA level I. 3rd ed. Hoboken: Wiley, 2015. 935 p. ISBN 978-1-119-00336-6.
JOHNSON, Spencer. Who Moved My Cheese? London: Vermilion, 1999. 96 p. ISBN 0-09-181697-1.
KIYOSAKI, Robert. Rich Dad, Poor Dad. USA: Sphere, 2002. 256 p. ISBN 978-0751532715.
MADURA, Jeff. Personal Fnance. Boston: Pearson, 2014. 653 p. ISBN 978-0-13-299434-7.
CALLAGHAN, George S., Ian FRIBBANCE and Martin HIGGINSON, Personal Finance. 2nd ed. Basingstoke: Palgrave Macmillan in association with The Open University, 2012. 487 p. ISBN 978-0-230-34811-0.
CLASON, George S. The Richest Man in Babylon. Great Britain: Amazon, 2007. ISBN 978-1-5304-3902-7.
CHAMBERS, Donald R., Mark Jonathan Paul ANSON, Keith H. BLACK and Hossein KAZEMI. Alternative Investments: CAIA level I. 3rd ed. Hoboken: Wiley, 2015. 935 p. ISBN 978-1-119-00336-6.
JOHNSON, Spencer. Who Moved My Cheese? London: Vermilion, 1999. 96 p. ISBN 0-09-181697-1.
KIYOSAKI, Robert. Rich Dad, Poor Dad. USA: Sphere, 2002. 256 p. ISBN 978-0751532715.
MADURA, Jeff. Personal Fnance. Boston: Pearson, 2014. 653 p. ISBN 978-0-13-299434-7.
Planned learning activities and teaching methods
Lectures
Assesment methods and criteria
Tasks are not Defined