Ch3: Personal Financial Life Cycle

• Dependent Stage; 0 to 20 years old: where the person is still dependent on their parents for support. Typical needs and wants are food, clothing, shelter and school costs. Sources of finance include a part-time job or pocket money/allowance.
• Independent Stage; 20 to 35 years old: where the person becomes independent and can live on their own with the money they make. Typical needs and wants are food, clothing, shelter and personal possessions such as a phone or car. Sources of finance include salary, loans or jobseekers benefit.
• Growth Stage; 35 to 55 years old: the stage of life where people are likely to settle down in employment and have a family. Typical needs and wants are food, clothing, shelter, a car and many household expenses. Sources of finance include a salary, child benefit and loans.
• Maturity Stage; 55 to 65 years old: where people have reached the top of their career. They begin planning for their retirement. Typical needs and wants are food, clothing, shelter, college fees for children and household expenses. Sources of finance include salary or jobseekers benefit.
• Retirement Stage; 65 and above: the state of life where we stop working and spend time on our interests. Typical needs and wants are food, clothing, shelter, holidays and household expenses. Sources of finance include a pension and savings.