hello students!

Welcome to the first formal first lecture of the course where we are going to discuss the
introduction to the course, importance of the course for your financial well being and exam
structure.
Lets start!

Slide 2
Displayed here are flags of various countries along with their respective Gross Domestic
Product (GDP) figures shown on the right-hand side. The United States has a GDP of
approximately 20 trillion, China's GDP is 12 trillion, Japan's is 2.6 trillion, and our economy is
approaching 3 trillion. These countries are often considered powerful due to their strong
economies. The US dollar, being the most powerful currency, contributes to their influence
in the global market.
Powerful countries generally offer a higher standard of living compared to underdeveloped
or developing nations. This is made possible by their robust economies, which enable
investments in better infrastructure, healthcare, and education facilities. Many people aspire
to visit or even settle in these countries due to the opportunities and quality of life they
provide.

Slide 3
The economy of a country affects our lives, and we learn about it through a subject called
economics. In your career, you may prefer to work for a bigger organization because they
offer higher pay and better benefits. Economics helps us study the economy of a whole
nation (macroeconomics) and the economy of a single company (microeconomics). This
subject is introduced in the curriculum because it directly relates to our financial well-being.
As you progress in your career, you may become a manager responsible for managing
resources, including money. Economics knowledge gives you an advantage over other
managers as you can make informed decisions about projects and investments. For
entrepreneurs, understanding market conditions and the economy is crucial for running a
sustainable business. With a good grasp of economics, you can allocate your money wisely
and make better business decisions.
Now coming to the personal finance,

Slide 4

On the slide, you can see a picture of the Hollywood celebrity, Marilyn Monroe! She was the most
famous star in Hollywood and used to command a fee of half a million dollars for a film, in 1960s. she
charged $300,000 for her last film, 'The Misfits.' Unfortunately, she passed away in the same year,
and at the time of her death, she had over drawn $1000, meaning she has wasted all her money and
taken loan of $1000.

This story highlights the importance of, managing money effectively. Personal finance is all about
understanding how to manage your money in a smart and responsible way.

Slide 5

What is personal finance

Personal finance refers to the management of an individual's financial resources. It involves making
informed and responsible decisions about earning, spending, saving, investing, and protecting money
to achieve financial goals and secure future financial well-being.

In personal finance, individuals assess their current financial situation, set financial goals (such as
buying a home, saving for retirement, or paying off debt), and create a budget to allocate income to
different expenses and savings. They may also consider various investment options to grow their
wealth over time.

Additionally, personal finance includes understanding and managing financial risks, such as
purchasing insurance to protect against unforeseen events like accidents, health issues, or property
damage.

The principles of personal finance are applicable to people of all income levels and life stages. By
practicing good financial habits and making sound financial decisions, individuals can improve their
financial stability, build wealth, and work towards achieving their financial dreams and aspirations.

Slide 6

Knowledge of personal finance is important for

1. Making more money out of the money you have ultimately resulting in better standard of
living
2. Preparing you for emergencies in life
3. Growing your wealth over time
4. Securing your retirement and old age

Personal finance talks about budgeting, banking, insurance, mortgages, investment, and retirement
planning.

Slide 7

Similar to the five elements found in nature, personal finance also consists of five essential elements:
income, spending, savings, investment, and protection.

The first element is your income, which represents how much you earn. The second element involves
how wisely or unwisely you spend your earnings. After spending, the third element comes into play,
which is how much you can save from your income. The fourth element deals with deciding where to
invest your savings. Lastly, the fifth element focuses on safeguarding your assets from unforeseen
situations.

In summary, the key points in personal finance revolve around managing your income, spending,
savings, investments, and protection to ensure financial well-being and security.

Slide 8

There is a saying by an economist “either make your money work for you always have to work for
your money”

Putting your money at work to generate more money is the key of successful personal finance
planning.

Slide 9

Objectives of the course are written on the slide. The objectives of studying economics are
summarised on the left hand side and on the right hand side the objectives of the personal finance
are mentioned.

Slide 10

In the economics section of the course, you will delve into the Indian economy, exploring the factors
that influence it. Additionally, you'll study the economics of businesses, understanding demand and
supply relationships, and examining the banking system in India. You'll learn about monetary policy,
how interest rates are determined, and their impact on individuals. Furthermore, you'll gain insights
into the factors influencing the prices of the dollar.

Slide11

In the personal finance section, you'll discover how to create a budget for your income and expenses.
You'll also learn how to set smart life goals, such as purchasing a car, house, or going on a vacation,
and how to invest money to achieve these financial goals. For instance, if you plan to buy a car worth
Rs. 10 Lakhs after four years, the course will guide you on how much money to invest over the four
years, how much downpayment to make, and how much to avail through a loan. The course will also
teach you how to protect your assets from unforeseen circumstances like unemployment or
accidents. Additionally, you'll be educated on retirement planning, emphasizing the importance of
starting early for a comfortable retired life.

Slide 12

At the end coming to the course delivery, the course will be delivered through video lectures.
Youtube links of the videos will be posted on the Google Classroom. The required course material will
be available on Google Classroom.
About exams, for the continuous assessment you have to appear for T1 and T2 exams. T1 will be
assignment based. The dates of the exam and assignment submissions will be declared in due
course. End semester exam will be usual pen and paper method.

Slide 13

These are the books you can refer for more information in the topics we will be discussing in the
course.

You can reach out to me through email given on the last slide.

Stay tuned and see you in the next lecture.

Thanks!