This document provides an overview of the key concepts from the unit "Financial Security" including the "three chunks of pie" metaphor for personal financial planning. It explains that the pie should be divided into three chunks: 1) plan to be generous through taxes, donations and support for others; 2) plan for the future such as paying off a house, superannuation, insurance, and saving for large expenses; 3) plan to be content through managing living expenses, focusing on contentment rather than upgrades, tracking expenses and cutting back 10%, and avoiding interest payments. It also lists Clitheroe's ten principles for managing money such as having a written financial plan, budgeting, saving often, avoiding risks, planning to own

1. GENC3003Personal Financial PlanningAndrew Hingstonandrew.hingston@unsw.edu.auUnit 1: Financial Security

2. 2Learning outcomes for this unitExplain the “three chunks” of pie metaphorExplain Clitheroe’s ten principles for managing money

3. 3Chunks of a pie?132

4. 4DiscussionWhat kind of things do you think will yield the most happiness to you over the next 40 years?

5. 5Chunk 1:Plan to be generousPlan to give money to other peopleIncome taxes benefit societyEducationDefence, judiciary, policeLeadership and adminWelfare (the poor)FamilyCharitiesCommunity organisationsChurch or other place of worship

6. 6Chunk 2:Plan for the FutureHouse paid offUse your superannuation to create financial independenceInsurance to protect against worst case scenariosPlan for your death (have a will)Save for big expensesInvest your savings

7. 7DiscussionOn what things is it easy to spend too much money as a student?

8. 8Chunk 3:Plan to be contentSpending 110% of your incomeManage your living expensesThis is the residual chunk of thepie, not the first chunk!Focus on contentment … not upgradesFocus on people … not possessionsTrack expenses … budget to cut back by 10%Never pay interest

9. 9Chunks of a piePlan to beGenerousPlan to beContentPlan for theFuture1. Plan to be GenerousTaxes support the communitySupport family and charities2. Plan for the future House paid off

10. Super for financial independence

11. Insurance to protect family and assets