154-0354/02 – Principles of Personal Finance (PPF)
| Gurantor department | Department of Finance | Credits | 3 |
| Subject guarantor | Ing. Kateřina Kořená, Ph.D. | Subject version guarantor | Ing. Kateřina Kořená, Ph.D. |
| Study level | undergraduate or graduate | Requirement | Choice-compulsory type B |
| Year | 1 | Semester | summer |
| | Study language | Czech |
| Year of introduction | 2019/2020 | Year of cancellation | |
| Intended for the faculties | EKF | Intended for study types | Follow-up Master |
Subject aims expressed by acquired skills and competences
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.
Teaching methods
Lectures
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.
Compulsory literature:
SYROVÝ, Petr a Tomáš TYL. Osobní finance. 4. vyd. Praha: Grada, 2021. 248 s. 978-80-271-3123-5.
VESELÁ, Jitka. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer ČR, 2019. 952 s. ISBN: 999-00-018-4966-5.
Recommended literature:
Way of continuous check of knowledge in the course of semester
Exam - written test + oral exam (for individual study, too).
E-learning
Other requirements
There are no other requirements on student.
Prerequisities
Subject has no prerequisities.
Co-requisities
Subject has no co-requisities.
Subject syllabus:
1. Financial investment, investment process. 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. Pension system, pension funds. Pension system reform. Advantages and disadvantages of investing in pension funds.
6. Securities – bonds, shares, mutual fund shares.
7. Household portfolio of securities.
8. Collective investment, investing in mutual funds as a part of household portfolio. Types of funds, active and passive investment strategies.
9. Bank products, deposit accounts, credit products, mortgage loans, consumer lending, credit cards, building loans.
10. Principles of financial portfolio creation, good and bad debt, diversification, dollar cost averaging.
11. Alternative investments - yield, risk, liquidity. Investing in tangible assets (real properties, commodities, collections).
12. Investment psychology, value of money, relation to the own property, analysis of the investor behaviour in financial markets.
13. Role of financial advisor, work with client, ethical use of information, ethics in financial markets.
14. Selected examples of non-ethical financial advisory and investing.
Conditions for subject completion
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction