Week 6 round-up

In Week 6 you looked at the most important financial asset most households possess – their home.

You examined the processes and issues involved in buying and selling property, and at the mortgage products that are commonly used to fund property purchases. You also examined the ‘buy-to-let’ market and the range of risks involved in buying and owning property.

Household balance sheets provide a snapshot of individual or household net worth and are an important tool in personal financial planning. This tool adds to the cash flow statement and budgeting processes explained in Weeks 2 and 3, and together these offer a crucial tool kit in financial planning and money management.

The size and composition of the financial balance sheet is also very important as you become older – it will affect how you approach retirement planning, a subject you will look at next.

You can now go to Week 7: Pensions