Higher Education

Personal Finance, 12th Edition

  • E. Thomas Garman Professor Emeritus, Virginia Polytechnic Institute and State University
  • Raymond E. Forgue University of Kentucky
  • ISBN-10: 1133595839  |  ISBN-13: 9781133595830
  • 608 Pages
  • Previous Editions: 2012, 2008, 2006
  • © 2015 | Published
  • College Bookstore Wholesale Price = $219.00

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About

Overview

PERSONAL FINANCE 12E offers a practical, student-friendly introduction to personal financial management. Using a structured, step-by-step approach, this market-leading text helps students learn how to save and invest, manage student loans, file taxes, decrease credit card debt, and plan for the future. Real-life scenarios, covering a wide range of financial challenges, enable students to appreciate the relevance of key concepts, and useful advice from personal finance experts helps them apply those concepts in their own lives. Many math-based examples clearly illustrate the critical importance of achieving long-term financial goals through investing. Building on the success of previous editions, the new Twelfth Edition continues to engage students and focus their attention on critical concepts they need to succeed in class and to manage their finances wisely for a lifetime.

Features and Benefits

  • "Do It NOW!" This action-oriented 2-3 sentence blurb offers a quick takeaway for students.
  • "Your Next Five Years." This box highlights what students will need to do in the five years post-graduation and references the material relevant in that chapter. It's a practical, how-to box that gets students thinking about the here and now as well as their short term needs.
  • "Instant Message." This boxed insert, designed to mimic a text message, includes quick tips and suggestions for students.
  • "What Do You Recommend?" and "What Do You Recommend Now?" These chapter opening and closing narratives cover essential financial topics. The opening feature is followed by a question and four potential answers. The results are often unexpected and provide an excellent opportunity to engage students. The closing feature asks the students to come back to that opening vignette and reflect upon it after reading the chapter.
  • "Advice from a Professional." These boxed inserts, authored by today's leading financial experts, offer practical, attainable tips for students to manage their personal finance needs.
  • "Financial Planning Cases." These short, chapter closing cases present various finance concepts to students from the vantage point of a married couple, single person, retiree, parent, and other demographics.

Table of Contents

Part I: FINANCIAL PLANNING.
1. Understanding Personal Finance.
2. Career Planning.
3. Financial Statements, Tools, and Budgets.
Part II: MONEY MANAGEMENT.
4. Managing Income Taxes.
5. Managing Checking and Savings Accounts.
6. Building and Maintaining Good Credit.
7. Credit Cards and Consumer Loans.
8. Vehicles and Other Major Purchases.
9. Obtaining Affordable Housing.
Part III: INCOME AND ASSET PROTECTION.
10. Managing Property and Liability Risk.
11. Planning for Health Care Expenses.
12. Life Insurance Planning.
Part IV: INVESTMENTS.
13. Investment Fundamentals.
14. Investing in Stocks and Bonds.
15. Investing Through Mutual Funds.
16. Real Estate and High-Risk Investments.
17. Retirement and Estate Planning.

What's New

  • This 12th edition of Personal Finance has been heavily revised, and it sets a new higher standard in the field. The text involves the student in genuinely learning the subject, particularly through newly created information presented in boxes, enhanced end-of-chapter activities, and innovative "prescriptions" from the authors. Your authors are the "Doctors of Personal Finance"--with 80 years of teaching experience, 65 years of experience writing college textbooks, and writing over 200 research articles. By drawing on their years of experience, the authors have made the 12th edition more than just a compilation of what to know. This edition emphasizes what are the "right things to do in personal finance, why, and then how to do them."
  • This 12th edition balances all the pieces of wise financial planning. In addition to updating and enhancing the quality of the content, this edition stimulates student interest in several new ways. The revised end-of-chapter activities are phenomenal. One continuing case is that of "Julia Price," whose successful financial life evolves through challenging economic times. Her case always ends with a question to challenge the student: "Offer your opinions about her thinking."
  • This edition includes five or six case problems in each chapter. The "Be Your Own Financial Planner" feature focuses on personalizing the concepts and lessons contained in the student workbook. These activities are not busy-work. They are concrete questions and tasks that require applying the knowledge provided in each chapter at a personal level.
  • All of the "On the 'Net" activities have been designed to carefully direct students to online materials that are genuinely useful and appropriate for this time in their personal financial lives.
  • The 12th edition includes over 35 new headings, more than 90 new boxed inserts, over 40 new terms, and lots of new and expanded material. This edition connects all the pieces of personal finance in a comprehensive manner, shows students the relevancy of the topics, and requires students to do a reality check on their own finances. As a result, your students will succeed!
  • NEW! Chapter 4 was updated to reflect the impact of the Congress passing a new tax bracket on higher-income earners and it reflects additional taxes on the top 3 percent of income earners to help pay for provisions of the Affordable Care Act.
  • NEW! Chapter 11, Planning for Health Care Expenses, is totally new because the Affordable Health Care Act, also known as Obamacare, mandates enormous changes in how Americans go about protecting themselves from health care expenses. It also includes the information on using advance directives that formerly was in chapter 18.
  • NEW! Chapter 18 was deleted because Congress changed estate planning law so couples with estates valued at less than $10.5 million owe no taxes, and this impacts only about 1,300 families a year. The remainder is contained in Chapter 17, Retirement and Estate Planning.
  • NEW! A new boxed feature is included in every chapter "Bias Toward…." that gives examples of what people "tend to do wrong" in personal finance and what the actions the reader can take to avoid such threats.
  • NEW! We have carefully constructed the 12th edition to address instructors' concerns about getting through all the necessary material for this course. The streamlined table of contents outlines 17 chapters divided into four parts: Financial Planning, Money Management, Income and Asset Protection, and Investments and Retirement Planning. We include a comprehensive chapter on "Career Planning" that provides students with innovative 21st century suggestions necessary to obtain and succeed in starting their careers. In every chapter where relevant, we place the material in the context of today's challenging economic times.
  • NEW! "Do It In Class." We highlight with icons which topics in the chapter are most suitable for students to "turn the class upside down" by choosing to do in-class learning activities for 20 to 25 minutes. Special icons are also used to mark the parallel content in the chapter to review and learn so the student can perform the tasks requested.
  • NEW! "Bias Toward…" These new boxes appear in every chapter and give the reader a reality check on what people almost automatically tend to do wrong. And the bias box narrative concisely tells what to do about it.

Supplements

All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Website  (ISBN-10: 1305085078 | ISBN-13: 9781305085077)

The companion website for Garman/Forgue's Personal Finance 12e has everything you need to enhance instruction in your course. Access the site at www.cengage.com. Here you'll find PowerPoints, the Instructor's Resource Manual, the Solutions Manual, and a number of student-focused tools like Excel calculators, flashcards, a glossary, and tutorial quizzes.

Cengage Learning Testing, powered by Cognero Instant Access  (ISBN-10: 1305084721 | ISBN-13: 9781305084728)

Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to: Author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; deliver tests from your learning management system, your classroom or wherever you want!

My Personal Financial Planner with Worksheets  (ISBN-10: 1285096630 | ISBN-13: 9781285096636)

My Personal Financial Planner is a printed handbook for students to use in planning and organizing their personal finances. This booklet, which is bundled with the main text, contains worksheets, schedules, and planners for financial planning. Some of the worksheets in the planner allow students to do the same calculations and planning exercises as covered in the book. Others are for use in developing their own financial plans and activities. These worksheets and calculators are not intended as "busywork" for students. Rather, they represent the nuts and bolts of a student's own personal financial plan. My Personal Financial Planner has been thoroughly updated to reflect changes made in the text.

List Price = $29.95  | CengageBrain Price = $29.95  | College Bookstore Wholesale Price = $22.50

CengageNOW™, 1 term (6 months) Instant Access  (ISBN-10: 1285849191 | ISBN-13: 9781285849195)

With its engaging learning and assessment tools, CengageNOW supports the entire student workflow, from motivation to mastery. For instructors, CengageNOW provides control and customization with the opportunity to tailor the learning experience to improve outcomes.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Aplia™, 1 term Instant Access  (ISBN-10: 1285849132 | ISBN-13: 9781285849133)

Succeed in your course with Aplia's interactive learning system--featuring practice problems with immediate feedback and tools developed specifically for PERSONAL FINANCE, 12th Edition. Aplia has already helped more than a million students succeed in college classes.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for CengageNOW™, 1 term Instant Access  (ISBN-10: 1305095332 | ISBN-13: 9781305095335)

Cengage Learning provides Learning Management System (LMS) integration with our MindLinks service. This service is designed to deliver an optimal user experience through the learning management system (LMS) already used by the institution – facilitating learning retention and contributing to better learner outcomes. Our collaboration with LMS industry leaders helps drive advanced features like gradebook integration, while the fluid pedagogical design contributes to more teachable moments.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for Aplia™, 1 term Instant Access  (ISBN-10: 1305095669 | ISBN-13: 9781305095663)

Cengage Learning provides Learning Management System (LMS) integration with our MindLinks service. This service is designed to deliver an optimal user experience through the learning management system (LMS) already used by the institution – facilitating learning retention and contributing to better learner outcomes. Our collaboration with LMS industry leaders helps drive advanced features like gradebook integration, while the fluid pedagogical design contributes to more teachable moments.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

MindTap® Finance, 1 term (6 months) Instant Access for Garman/Forgue's Personal Finance  (ISBN-10: 1305502698 | ISBN-13: 9781305502697)

MindTap™ Finance for Garman/Forgue’s Personal Finance, 12th Edition is the digital learning solution that helps instructors engage and transform today's students into critical thinkers. Through paths of dynamic assignments and applications that you can personalize, real-time course analytics, and an accessible reader, MindTap helps you turn cookie cutter into cutting edge, apathy into engagement, and memorizers into higher-level thinkers.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for MindTap® Finance, 1 term (6 months) Instant Access  (ISBN-10: 1305502701 | ISBN-13: 9781305502703)

Cengage Learning provides Learning Management System (LMS) integration with our MindLinks service. This service is designed to deliver an optimal user experience through the learning management system (LMS) already used by the institution--facilitating learning retention and contributing to better learner outcomes. Our collaboration with LMS industry leaders helps drive advanced features like gradebook integration, while the fluid pedagogical design contributes to more teachable moments.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Student Supplements

My Personal Financial Planner with Worksheets  (ISBN-10: 1285096630 | ISBN-13: 9781285096636)

My Personal Financial Planner is a printed handbook used for planning and organizing your personal finances. This booklet, which is bundled with the main text, contains worksheets, schedules, and planners for financial planning. Some of the worksheets in the planner will allow you to do the same calculations and planning exercises as covered in the book. Others are for your use in developing your own financial plans and activities. These worksheets and calculators are not intended as "busywork;" rather, they represent the nuts and bolts of your own personal financial plan. My Personal Financial Planner has been thoroughly updated to reflect changes made in the text.

List Price = $29.95  | CengageBrain Price = $29.95  | College Bookstore Wholesale Price = $22.50

CengageNOW™, 1 term (6 months) Instant Access  (ISBN-10: 1285849191 | ISBN-13: 9781285849195)

Have the tools you need to be successful A variety of tools are available in CengageNOW™, all combined in one easy-to-use resource designed to improve your grades. Some resources get you prepared for class and help you succeed on homework, and others show you specific areas where you can work to improve. Stay ahead of the course requirements CengageNOW shows you the path through your course—from first day through finals. Once you know what’s expected, it’s easier to complete your assignments. Gain understanding that stays with you Do well on tests as well as the assignments! Bridge the gap between homework and tests by using CengageNOW to truly understand the material. Self-study and review materials keep you on the right track, to make sure your understanding goes beyond memorization. Set yourself up for better grades Why wonder where you stand? CengageNOW includes trackable assignments and grades. It tells you what to do to improve your grade, and gives you the tools to accomplish it! Student Testimonials: “I love the check your work option. Really, when you’re having a hard time figuring out an answer, sometimes working backwards is the best way to understand conceptually what you’re doing wrong.” - Brad Duncan University of Utah “I liked the videos because they were short enough to teach me and because they were short, I was able to find time to watch them again and again if I did not understand the first time.” - Jennifer Wright Northeast Wisconsin Technical College CTA: Ask your instructor about CengageNOW for this course.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Aplia™, 1 term Instant Access  (ISBN-10: 1285849132 | ISBN-13: 9781285849133)

Succeed in your course with Aplia's interactive learning system--featuring practice problems with immediate feedback and tools developed specifically for PERSONAL FINANCE, 12th Edition. Aplia has already helped more than a million students succeed in college classes.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for CengageNOW™, 1 term Instant Access  (ISBN-10: 1305095332 | ISBN-13: 9781305095335)

Cengage Learning provides Learning Management System (LMS) integration with our MindLinks service. This service is designed to deliver an optimal user experience through the learning management system (LMS) already used by the institution – facilitating learning retention and contributing to better learner outcomes. Our collaboration with LMS industry leaders helps drive advanced features like gradebook integration, while the fluid pedagogical design contributes to more teachable moments.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for Aplia™, 1 term Instant Access  (ISBN-10: 1305095669 | ISBN-13: 9781305095663)

Cengage Learning provides Learning Management System (LMS) integration with our MindLinks service. This service is designed to deliver an optimal user experience through the learning management system (LMS) already used by the institution – facilitating learning retention and contributing to better learner outcomes. Our collaboration with LMS industry leaders helps drive advanced features like gradebook integration, while the fluid pedagogical design contributes to more teachable moments.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

MindTap® Finance, 1 term (6 months) Instant Access for Garman/Forgue's Personal Finance  (ISBN-10: 1305502698 | ISBN-13: 9781305502697)

MindTap™ Finance for Garman/Forgue's Personal Finance, 12th Edition provides you with the tools you need to better manage your limited time -- you can complete assignments whenever and wherever you are ready to learn with course material specially customized for you by your instructor and streamlined in one proven, easy-to-use interface. With an array of tools and apps -- from flashcards to note taking -- you'll get a true understanding of course concepts, helping you to achieve better grades and setting the groundwork for your future courses.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for MindTap® Finance, 1 term (6 months) Instant Access  (ISBN-10: 1305502701 | ISBN-13: 9781305502703)

This access code will provide you with seamless access to your MindTap™ Finance resources from within your campus Learning Management System. You will be prompted to enter this access code the first time that you click on a link in your course that includes Cengage content.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Meet the Author

Author Bio

E. Thomas Garman

A renowned author, advisor, and academic, Garman is a Fellow and Distinguished Professor Emeritus of Virginia Tech University, where he directed the National Institute for Personal Finance Employee Education. He subsequently founded the Personal Finance Employee Education Foundation. Author of 40 book's and 200 academic research articles, Garman directed several award-winning research studies that link the financial fortunes of employers with the financial health of their employees. Research consistently shows that decreasing employee financial distress and improving personal financial well-being creates better workers. Garman's research has been the most cited in the field for over 20 years. He has worked for a U.S. senator in Washington, D.C., in economic development in West Africa, and for a national non-profit credit counseling organization. He is an elected Distinguished Fellow of both the Association for Financial Counseling and Planning Education and the American Council on Consumer Interests. Garman has served on advisory boards for the Board of Governors of the Federal Reserve System, International Board of Standards and Practices for Certified Financial Planners, American National Standards Institute, National Foundation for Credit Counseling, U.S. Food and Drug Administration, and National Advertising Review Board. His consulting includes work for Profit Sharing/401(k) Council of America, Manulife Financial, AT&T, U.S. Navy, U.S. Army, and U.S. Department of Defense. His work has been featured in hundreds of publications, including USA Today, New York Times, The Washington Post, The Los Angeles Times, and U.S. News & World Report, and he has appeared on National Public Radio and NBC Nightly News.

Raymond E. Forgue

Raymond Forgue retired after 28 years as an associate professor in the Department of Family Studies at the University of Kentucky. He served as chair of the department and acting dean of the College of Human Environmental Sciences. Forgue taught various courses in consumer studies, personal finance, and insurance. His professional service has included the presidency of the American Council of Consumer Interests and the Association for Financial Counseling and Planning Education. Since retirement he has continued to write and consult on personal finance education training for the Accredited Financial Counselor certification program, AARP, and other organizations. Forgue serves on the Boards of the Personal Finance Employee Education Foundation and the National Association of Personal Financial Advisors.