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Faculty of Economics

ECTS Course Overview



Personal Finance

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

Course Unit Code154-0552/01
Number of ECTS Credits Allocated3 ECTS credits
Type of Course Unit *Choice-compulsory
Level of Course Unit *Second 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 and family finance and financial literacy. The aim of this course is to get students acquainted with using of the appropriate financial products and understanding the work of financial advisor. The students will be able to compare particular financial products,to define the work of financial advisor and be familiar with basic principles of his/her work and to create own personal investment portfolio.
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 a work of financial adviser,
- create own personal investment portfolio,
- understand main ethical principles in finance.
Course Contents
1. Financial investment. Investment triangle – personal finance application. Financial planning, typical family financial targets.

2. Family finance, household balance sheet and cash-flow, household savings. Household budget, importance of nest egg and insurance.

3. Financial mathematics, time value of money, basic household situation application.

4. Insurance products, life and disability insurance, non-life insurance, correct insurance, most frequent insurance mistakes.

5. Savings products without insurance. Pension system, pension funds. Pension system reform. Advantages and disadvantages of investing in pension funds.

6. Securities: bonds, shares, mutual fund shares. Short-term and long-term investing. Household portfolio of securities.

7. Collective investment, types of funds. Investing in mutual funds. Index funds, guaranteed funds. Collective investment in the Czech Republic and abroad.

8. Bank products, deposit accounts, credit products, mortgage loans, consumer lendings, credit cards. Building loans.

9. Household savings structure, preferences of saving ways and styles, household debts. Comparison of Czech and foreign household portfolios.

10. Principles of financial portfolio creation, good and bad debt, investment process, diversificatin, regular investing.

11. Financial independence, financial freedom - explanation of the terms, their importance to family finance. Cash-flow quadrant.

12. Investing in tangible assets (real properties, commodities, collections). Inflation, interest rates, exchange rates, their ifluence on family finance.

13. Investment psychology, value of money, relation to the own property, analysis of the investor behaviour in the financial markets.

14. Financial institutions, history and development of financial institutions, regulation of financial institutions and financial market from the view of the personal finance. Present-day situation in the Czech financial market and global financial markets.





Recommended or Required Reading
Required Reading:
KAPOOR, J. R., L. R. DLABAY and R. J. HUGHES. Personal Finance. 14th ed. USA: McGraw-Hill/Irwin, 2023. ISBN 978-1264101597.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
PECK, Sarah. Investment Ethics. USA: Wiley 2011. ISBN 978-0-470-43453-6.
KAPOOR, J. R., L. R. DLABAY and R. J. HUGHES. Personal Finance. 14th ed. USA: McGraw-Hill/Irwin, 2023. ISBN 978-1264101597.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
PECK, Sarah. Investment Ethics. USA: Wiley 2011. ISBN 978-0-470-43453-6.
Recommended Reading:
CLASON, George S. The Richest Man in Babylon. UK: Dover Publication Inc, 2022.ISBN 978-0-486849607.
KIYOSAKI, Robert. Rich Dad, Poor Dad. USA: Plata Publishing, 2022. ISBN 978-1-612681-139.
SIEGEL, Cary. Why Didn't They Teach Me This in School, Too? USA: Simple Strategic Solutions, 2018. ISBN 978-0692116531.

CLASON, George S. The Richest Man in Babylon. UK: Dover Publication Inc, 2022.ISBN 978-0-486849607.
KIYOSAKI, Robert. Rich Dad, Poor Dad. USA: Plata Publishing, 2022. ISBN 978-1-612681-139.
SIEGEL, Cary. Why Didn't They Teach Me This in School, Too? USA: Simple Strategic Solutions, 2018. ISBN 978-0692116531.
Planned learning activities and teaching methods
Lectures, Tutorials
Assesment methods and criteria
Tasks are not Defined