Dependent stage: this is the time in our life where we depend on other people to
provide all our essential needs and wants. This stage will usually last from our birth
to the time we finish our education at secondary school or third level. ( 0 -20 ). Our
main needs and wants during this time will be food, clothing, shelter and school
costs. The money to provide for our needs and wants during this stage will usually
come from our parents or guardians. As we move through this stage we may get a
part-time job or a summer job to provide us with additional income which will allow
us to achieve more of our wants
Independent stage: this is the time in our lives where we no longer rely on
others to achieve the majority of our needs and wants. At this stage, we
will have started working and earning or we may be looking for a job and
collecting job seeker's benefit. The age of people at this stage could range
from age 18 to mid-thirties. Our main needs and wants will be food,
clothing, shelter and personal possessions such as a laptop or car. The
money to provide for our needs and wants will generally come from our
wages/salary or job seekers benefit. Many younger people will continue
to live at home so they can save to buy a home of their own, so their
parents continue to provide for some of their needs and wants.
Growth stage:This is the time in our lives where we become more settled in our work and
family life. We look for new challenges in the form of promotion or a new job and we may
have a family of our own. We continue to provide for ourselves as well as our partner and
children. The age of people in this stage will range from mid-thirties to mid-fifties. Our
main needs and wants during this time will be food, clothing, shelter, car and various
household expenses.the money to provide for our needs and wants will continue to be our
salary/wages, job seekers benefit, child benefit and bank or credit union loans.
Maturity stage: this is the time in our life when we
are at the top of our career and no longer expect
promotion. We begin to plan for our retirement. We
continue to provide for ourselves, our family and
possibly our elderly parents. The age of people in this
stage would range from mid-fifties to mid-sixties.
Our main needs and wants during this time will be
food, clothing, shelter, college fees for our children
and household expenses. Our main source of income
at this stage will be from our salary/wages or from
job seekers benefit.
Retirement stage: this is the time in our life when we have stopped working and spend most of our time on
our hobbies and interests. We still provide for our partner but increasingly less for other members of our
family the age of retirement depends on the type of job you have and the type of pension you are entitled
to. The age people are at this stage typically ranges from mid-sixties on wards. Our main needs and wants
duringh this stage will be food, clothes, shelter, holidays, health care and household expenses. The money to
provide for our needs and wants at this stage mainly come from our pension and savings.
Key words: personal financial life cycle: This term describes the
financial resources we require to meet our needs and wants during
different stages of our lives
Moving back through the cycle:
Sometimes, we may move back
through the cycle. For example: if you
are in the independent stage and are
living by yourself but then you can not
afford rent or to buy your own home
so you move back in with your parents
and become dependent on them again.
Another example would be if an older
person cannot look after themselves
anymore due to old age or illness, they
my move in with their children and
become dependent on them
Planning for the future: in the dependent stage we will rely on others fro most of our finances. only near the end do
we have to start saving fro our debs ball, going out with friends or planing our first holiday with our friends. in the
independent stage we will be responsible for some financial planning later on in this stage such as buying your first
car and saving for the deposit for your first home. in the growth stage we will be responsible for paying your way
through life: mortgage/rent, car loan, household expenses, save for university fees and start paying into pension. in
the maturity stage,keep paying into pension. retirement stage, nursing home care and funeral expenses.