Public Policy and Personal Finance

  • Credits: 3
  • Ending: Examination
  • Range: 2C
  • Semester: winter
  • Year: 3
  • Faculty of Economics and Finance

Teachers

Included in study programs

Management of Public Policies

Teaching results

After studying this module, students should be able to:
Knowledge:
- understand the basic principles of personal and household finance management
- understand the impact of selected public policies on the personal/household finance and small businesses
Competences:
- developing a critical understanding of the effects of public policy on voters based on case studies
- manage the effect of public policies on key items in personal/ household finance and the finance of small business units
Skills:
- express ideas supported by empirical data
- apply theoretical knowledge in practical analysis of the selected public policies effect on the personal and household finance

Indicative content

The course focused on case studies analyzing the impact of selected public policies on the personal finances and the finance of small business units. The first part of the course is devoted to an introduction to the issues of personal finance and the definition of basic concepts needed for further work on the course. We define the relationship between a personal/ household budget and business budget of small business units. During the course, students will examine issues related to personal finance, such as taxes, loans, charity, insurance and pensions. In the context of (hypothetical) positions in personal finance, we will discuss the implications of different public policies and how they affect different groups of people. For example, we will examine the implications of different tax rates for different types of income, support for home ownership in the context of housing and mortgage policies, as well as aging policies.

Support literature

KEOWN, A. J. Personal Finance, 8th Edition. Pearson, 2019.
GARMNA, T., FORGUE, R. Personal Finance, 12th Edition, Cengage Learning.
WALKER, R. Personal Finance, McGraw-Hill Education, 2012.
BENARTZI, S. - THALER, R.. Heuristics and biases in retirement savings behavior. Journal of Economic Perspectives, 2007, 21.3: 81-104.

Syllabus

1. Introduction to personal finance 2. Financial planning, personal risk management 3. Portfolio of assets and liabilities in personal finance. Personal and household budget 4. Personal finance determinants 5. Business and personal finances, business risk management 6. The relationship between personal/household budget and the budget of small business units 7. Individual health, public health policies and the implications for personal finance: a case study 8. Tax burden, tax systems and the impact on personal finance: a case study 9. Public policies related to population aging and the implications for personal finance: a case study 10. Housing policies, access to mortgage and the implications for personal finance: a case study 11. Family support, social risks and the impact on personal finance: a case study 12. Environmental policies and their implications for personal finance: a case study 13. Behavioral aspects in personal finance

Requirements to complete the course

20% seminar assignments and case studies, 20% semester project, 60% written exam

Date of approval: 10.02.2023

Date of the latest change: 06.04.2021