research financial plan example

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• J Ayurveda Integr Med
• v.10(2); Apr-Jun 2019

How to plan and write a budget for research grant proposal?

Medical research can have an enormous positive impact on human health. Health research improves the quality of human lives and society which plays a vital role in social and economic development of the nation. Financial support is crucial for research. However, winning a research grant is a difficult task. A successful grant-winning application requires two key elements: one is an innovative research problem with best probable idea/plan for tackling it and appropriate planning of budget. The aim of the present paper is to give an insight on funding agencies providing funding for health research including traditional Indian medicine (from an Indian perspective) and key points for planning and writing budget section of a grant application.

1. Introduction

Why health science research is important and why should it to be funded? Science and technology innovations and health research can have an enormous impact on human health. They improve public health, quality of human lives, longevity and have made society better [1] , [2] . Healthy humans with better quality of life are crucial for the social and economical development of the nation [3] . Medical research led to the expansion of knowledge about health problems/conditions and their mechanism, risk factors, outcomes of treatments or interventions, preventive measures and proper management. Clinical studies or trials provide important information about the safety and efficacy of a drug/intervention. Innovative basic science research had led to the discovery of new technology, efficient diagnostic and therapeutic devices. So, currently, an effort with multidisciplinary approach is a demand for better understanding of clinical conditions and providing safest health care to the community [2] , [4] .

Whether it is basic or applied, clinical or non-clinical, all research needs financial support. Considering the importance of research in economic growth of a nation, many countries are increasing their budget for research and development in science. A study on impact of GDP (Gross Domestic Product) on research and development in science among Asian countries has found that one who spends more on research has more research outcomes in the form of total number of research documents, citations per documents and h-index [5] . About 95% of the NIH (National Institutes of Health, USA), budget goes directly to research awards, programs, and centers; training programs; and research and development contracts [6] . Total expenditure carried out for research in India is too less than USA and China. Percentage of GDP for research and development in India is 0.88%, while South Korea, USA and China have 4.292%, 2.742 and 2.1% respectively [7] .

Owing to the increasing competition among the researchers, especially the young ones, for their academic growth, preparing and planning a winning research proposal becomes very essential. A successful grant-winning application requires two key elements: (1) innovative research problem with best probable idea/plan for tackling it and (2) appropriate planning of budget. The aim of the present paper is to give an insight on funding agencies (from an Indian perspective) and key points for planning and writing budget section of a grant application.

2. What is the purpose of the budget plan in a grant application?

A budget is the quantitative expression of a financial plan for future expenses on the project in a given period of time [8] . Budget plan is a key element of a grant application. It demonstrates the required cost for the proposed project. It is a prediction of expenses and serves a plan for funders on how the organization will operate the project, spend the money in a given set of period and where their money will go. It shows the funders exactly what they can support and also helps the institution and investigating team in management of the project. Moreover, budget plan requires for accountability [9] .

3. Which are the funding agencies that sponsor health research in India?

Various national and international sponsoring agencies have identified health problems of priority for funding a research. Some of the leading funding agencies providing grant for health research including alternative systems of medicine in India are given in Table 1 . State Universities/deemed Universities also have a provision of funding for medical research.

Table 1

List of funding agencies those promote health research.

4. What constitutes a research project budget?

Proforma of the research grant applications and presentation of budget section may vary among the sponsoring agencies. However, major parts of budget plan in the applications of the above mentioned funding agencies are quite similar. The budget section is broadly divided into two categories: direct and indirect costs.

4.1. Direct costs:

These are the costs incurred specifically to carry out a project [10] . Direct costs include expenses towards personnel, materials, equipments, consumables and travel. These particulars are further categorized into recurring and non-recurring expenses on the basis of their occurrence during the study period. A brief description of the sub-sections under direct cost is given below:

4.1.1. Personnel:

Budget for personnel can be mentioned in this section in case human resources are required for the study and as per funding agency guidelines. Salaries with allowances can be budgeted for human resources such as site manager, research assistant, junior research fellow (JRF), senior research fellow (SRF), research associate, technician, data entry operator and attender. Most of the Indian funding agencies do not have a provision for salaries for the principal investigator (PI) and co-investigators (Co-PI). Ministry of AYUSH [11] and Rajiv Gandhi University of Health Science (RGUHS), Karnataka [12] provide one-time minimal fees for investigators and supporting staff respectively. There is a provision for salaries of investigators in Wellcome trust-DBT India alliance grants [13] .

4.1.2. Recurring expenses:

Recurring expenses are those which are variable and which keep on occurring throughout the entire project duration. Particulars categorized in this category are consumables, chemicals, glasswares, laboratory test charges, diagnostic kits, stationery, prints, photocopies, communication, postage, telephone charges, survey tools, questionnaires, publication charges, reprints, binding etc. Other expenses could be allowances for patients/participants, food charges and physician fees.

4.1.3. Non-recurring expenses:

Non-recurring expenses are those which are one-time in nature or which do not recur at regular intervals. Particulars included in this category are equipments or instruments with its accessories, software's, computer, printer, electrical and electronic items and accessories of the existing instrument in your lab. Percentage of budget allocated for equipment varies among the funding agencies from 25% to 90% of the entire budget. Some of the agencies do not have provision for equipment in budget. Vision Group on Science and Technology allocated their maximum grant (up to 90%) for development of infrastructure of laboratories [14] .

4.1.4. Traveling expenses:

Budget allocated for traveling can be used for attending meetings, conferences, workshops and training programs. Foreign travel is not allowed by any Indian funding agency. Traveling expenses for collection of data, survey and visit to other centers in multicentric study can be budgeted in this sub-section.

4.2. Indirect costs:

These are the costs which cannot be directly attributed to specific expenses of a project, but are required to run a project. It is also termed as overhead charges. Laboratory, electricity, water, library and other facilities are provided by the institution to run a proposed research project. Therefore, a fixed cost (usually) of about 5–15% of the total budget is provisioned as institutional overhead charges which goes to the institution directly. The range may, however, be flexible on the basis of the type of funding agency.

5. Budget justification

Most of the funding agencies require submission of a budget justification with all the items described above. Sometimes it is also called as budget narrative. Explanation of need for each line item in the budget with item-wise and year-wise breakdown has to be provided. Quantification of total costs of each line-item and document cost calculation should be done. When writing a budget justification, it is important to follow the same order as that in an itemized budget. For example, if equipment such as color doppler is required, then justify the need of a device with respect to the proposed methodology of the study. Similarly, for non-recurring expenses, breakdown the consumables item-wise and year-wise with its cost and calculation according to the protocol of the study and justify accordingly.

6. Budget summary

An item-wise and year wise summary of the total budget is usually required in most of the applications. Budget summary outlines the proposed grant and often (most of the format) appears at the beginning of the proposal. It should always be prepared at the end, after the grant proposal has been completely developed. A sample budget summary (as an example) for a proposed study for the duration of three years is shown in Table 2 . In the personnel section, a research fellow salary with allowances is budgeted year-wise. The salary of the research fellow for the first and second year is Rs. 2,30,000 per year (JRF) with an enhancement to Rs 2, 59,000 for the third year (SRF) as per the guidelines of the funding agency. As non-recurring expenses are one time in nature, a budget for equipment was budgeted only for the first year. Under the section of recurring expenses, more budgets are allocated in the second year for consumables because recruitment of subjects in large number will be done during the second year of the proposed study. Similarly, expenses toward travel, investigator fee and other miscellaneous costs year-wise have been budgeted. The emoluments and guidelines on service conditions for research personnel employed in research project by ICMR has been given in reference section [15] , [16] .

Table 2

Sample budget summary (year wise).

7. How to plan a simple research budget?

Planning of the research budget begins with an innovative research question, objectives and design of the study. Before starting to write a budget plan, it is essential to understand the expectations of funding agencies, University/Institute and the team of researchers. It is imperative to keep in mind that the research proposal will be reviewed by both scientific and financial (non-scientific) experts. Hence, the proposal should be prepared in such a way that it can be easily understood by even non-scientific experts.

Firstly, a list of what is essential and would add value for research such as focus of research, primary and secondary outcomes of the study, the source of the sample, study setting, sample design and sample size, techniques used to collect data, method of data analysis and available resources should be made [17] .

Secondly, the instructions, format of the application and rules of the funding agency should be read thoroughly. Budget specifications, limitations of recurring and non-recurring costs, and necessity of budget justification with cost breakdown should be checked. Note that one should not deviate or modify the proforma of the funding agency.

Thirdly, a list of items should be made and categorized into recurring and non-recurring expenses. Breakdown of the budget into item-wise and year-wise with cost calculation should be done. It should be ensured that costs are reasonable, allowable and related to the research proposal, so that the budget appears realistic. Travel expenses should be calculated as per the rules of the funding agency.

Fourthly, item-wise and year-wise justification of the requirement in a same sequence of format should be provided. A well-justified budget can enhance the evaluation of the research proposal by reviewers and funding body.

The last most important part is to review the budget and verify the costs and calculation. It is better, if other research team members can review the budget plan and re-calculate the costs thoroughly. Remember, too high budget and too low budget with respect to the research proposal are suspicious and chances of receiving a grant are less.

Sources of funding

Conflict of interest.

Peer review under responsibility of Transdisciplinary University, Bangalore.

How to Write a Small Business Financial Plan

Noah Parsons

4 min. read

Updated April 22, 2024

Creating a financial plan is often the most intimidating part of writing a business plan.

It’s also one of the most vital. Businesses with well-structured and accurate financial statements are more prepared to pitch to investors, receive funding, and achieve long-term success.

Thankfully, you don’t need an accounting degree to successfully create your budget and forecasts.

Here is everything you need to include in your financial plan, along with optional performance metrics, funding specifics, mistakes to avoid , and free templates.

• Key components of a financial plan

A sound financial plan is made up of six key components that help you easily track and forecast your business financials. They include your:

Sales forecast

What do you expect to sell in a given period? Segment and organize your sales projections with a personalized sales forecast based on your business type.

Subscription sales forecast

While not too different from traditional sales forecasts—there are a few specific terms and calculations you’ll need to know when forecasting sales for a subscription-based business.

Expense budget

Create, review, and revise your expense budget to keep your business on track and more easily predict future expenses.

How to forecast personnel costs

How much do your current, and future, employees’ pay, taxes, and benefits cost your business? Find out by forecasting your personnel costs.

Profit and loss forecast

Track how you make money and how much you spend by listing all of your revenue streams and expenses in your profit and loss statement.

Cash flow forecast

Manage and create projections for the inflow and outflow of cash by building a cash flow statement and forecast.

Balance sheet

Need a snapshot of your business’s financial position? Keep an eye on your assets, liabilities, and equity within the balance sheet.

What to include if you plan to pursue funding

Do you plan to pursue any form of funding or financing? If the answer is yes, then there are a few additional pieces of information that you’ll need to include as part of your financial plan.

Highlight any risks and assumptions

Every entrepreneur takes risks with the biggest being assumptions and guesses about the future. Just be sure to track and address these unknowns in your plan early on.

Plan your exit strategy

Investors will want to know your long-term plans as a business owner. While you don’t need to have all the details, it’s worth taking the time to think through how you eventually plan to leave your business.

• Financial ratios and metrics

With your financial statements and forecasts in place, you have all the numbers needed to calculate insightful financial ratios.

While including these metrics in your plan is entirely optional, having them easily accessible can be valuable for tracking your performance and overall financial situation.

Key financial terms you should know

It’s not hard. Anybody who can run a business can understand these key financial terms. And every business owner and entrepreneur should know them.

Common business ratios

Unsure of which business ratios you should be using? Check out this list of key financial ratios that bankers, financial analysts, and investors will want to see.

Break-even analysis

Do you want to know when you’ll become profitable? Find out how much you need to sell to offset your production costs by conducting a break-even analysis.

How to calculate ROI

How much could a business decision be worth? Evaluate the efficiency or profitability by calculating the potential return on investment (ROI).

• How to improve your financial plan

Your financial statements are the core part of your business plan that you’ll revisit most often. Instead of worrying about getting it perfect the first time, check out the following resources to learn how to improve your projections over time.

Common mistakes with business forecasts

I was glad to be asked about common mistakes with startup financial projections. I read about 100 business plans per year, and I have this list of mistakes.

How to improve your financial projections

Learn how to improve your business financial projections by following these five basic guidelines.

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Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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• What to include for funding

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How to Prepare a Financial Plan for Startup Business (w/ example)

Free Financial Statements Template

Ajay Jagtap

• December 7, 2023

13 Min Read

If someone were to ask you about your business financials, could you give them a detailed answer?

Let’s say they ask—how do you allocate your operating expenses? What is your cash flow situation like? What is your exit strategy? And a series of similar other questions.

Instead of mumbling what to answer or shooting in the dark, as a founder, you must prepare yourself to answer this line of questioning—and creating a financial plan for your startup is the best way to do it.

A business plan’s financial plan section is no easy task—we get that.

But, you know what—this in-depth guide and financial plan example can make forecasting as simple as counting on your fingertips.

Ready to get started? Let’s begin by discussing startup financial planning.

What is Startup Financial Planning?

Startup financial planning, in simple terms, is a process of planning the financial aspects of a new business. It’s an integral part of a business plan and comprises its three major components: balance sheet, income statement, and cash-flow statement.

Apart from these statements, your financial section may also include revenue and sales forecasts, assets & liabilities, break-even analysis , and more. Your first financial plan may not be very detailed, but you can tweak and update it as your company grows.

Key Takeaways

• Realistic assumptions, thorough research, and a clear understanding of the market are the key to reliable financial projections.
• Cash flow projection, balance sheet, and income statement are three major components of a financial plan.
• Preparing a financial plan is easier and faster when you use a financial planning tool.
• Exploring “what-if” scenarios is an ideal method to understand the potential risks and opportunities involved in the business operations.

Why is Financial Planning Important to Your Startup?

Poor financial planning is one of the biggest reasons why most startups fail. In fact, a recent CNBC study reported that running out of cash was the reason behind 44% of startup failures in 2022.

A well-prepared financial plan provides a clear financial direction for your business, helps you set realistic financial objectives, create accurate forecasts, and shows your business is committed to its financial objectives.

It’s a key element of your business plan for winning potential investors. In fact, YC considered recent financial statements and projections to be critical elements of their Series A due diligence checklist .

Your financial plan demonstrates how your business manages expenses and generates revenue and helps them understand where your business stands today and in 5 years.

Makes sense why financial planning is important to your startup, doesn’t it? Let’s cut to the chase and discuss the key components of a startup’s financial plan.

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Key Components of a Startup Financial Plan

Whether creating a financial plan from scratch for a business venture or just modifying it for an existing one, here are the key components to consider including in your startup’s financial planning process.

Income Statement

An Income statement , also known as a profit-and-loss statement(P&L), shows your company’s income and expenditures. It also demonstrates how your business experienced any profit or loss over a given time.

Consider it as a snapshot of your business that shows the feasibility of your business idea. An income statement can be generated considering three scenarios: worst, expected, and best.

Your income or P&L statement must list the following:

• Cost of goods or cost of sale
• Gross margin
• Operating expenses
• Revenue streams
• EBITDA (Earnings before interest, tax, depreciation , & amortization )

Established businesses can prepare annual income statements, whereas new businesses and startups should consider preparing monthly statements.

Cash flow Statement

A cash flow statement is one of the most critical financial statements for startups that summarize your business’s cash in-and-out flows over a given time.

This section provides details on the cash position of your business and its ability to meet monetary commitments on a timely basis.

Your cash flow projection consists of the following three components:

✅ Cash revenue projection: Here, you must enter each month’s estimated or expected sales figures.

✅ Cash disbursements: List expenditures that you expect to pay in cash for each month over one year.

✅ Cash flow reconciliation: Cash flow reconciliation is a process used to ensure the accuracy of cash flow projections. The adjusted amount is the cash flow balance carried over to the next month.

Furthermore, a company’s cash flow projections can be crucial while assessing liquidity, its ability to generate positive cash flows and pay off debts, and invest in growth initiatives.

Balance Sheet

Your balance sheet is a financial statement that reports your company’s assets, liabilities, and shareholder equity at a given time.

Consider it as a snapshot of what your business owns and owes, as well as the amount invested by the shareholders.

This statement consists of three parts: assets , liabilities, and the balance calculated by the difference between the first two. The final numbers on this sheet reflect the business owner’s equity or value.

Balance sheets follow the following accounting equation with assets on one side and liabilities plus Owner’s equity on the other:

Here is what’s the core purpose of having a balance-sheet:

• Indicates the capital need of the business
• It helps to identify the allocation of resources
• It calculates the requirement of seed money you put up, and
• How much finance is required?

Since it helps investors understand the condition of your business on a given date, it’s a financial statement you can’t miss out on.

Break-even Analysis

Break-even analysis is a startup or small business accounting practice used to determine when a company, product, or service will become profitable.

For instance, a break-even analysis could help you understand how many candles you need to sell to cover your warehousing and manufacturing costs and start making profits.

Remember, anything you sell beyond the break-even point will result in profit.

You must be aware of your fixed and variable costs to accurately determine your startup’s break-even point.

• Fixed costs: fixed expenses that stay the same no matter what.
• Variable costs: expenses that fluctuate over time depending on production or sales.

A break-even point helps you smartly price your goods or services, cover fixed costs, catch missing expenses, and set sales targets while helping investors gain confidence in your business. No brainer—why it’s a key component of your startup’s financial plan.

Having covered all the key elements of a financial plan, let’s discuss how you can create a financial plan for your startup.

How to Create a Financial Section of a Startup Business Plan?

1. determine your financial needs.

You can’t start financial planning without understanding your financial requirements, can you? Get your notepad or simply open a notion doc; it’s time for some critical thinking.

Start by assessing your current situation by—calculating your income, expenses , assets, and liabilities, what the startup costs are, how much you have against them, and how much financing you need.

Assessing your current financial situation and health will help determine how much capital you need for your startup and help plan fundraising activities and outreach.

Furthermore, determining financial needs helps prioritize operational activities and expenses, effectively allocate resources, and increase the viability and sustainability of a business in the long run.

Having learned to determine financial needs, let’s head straight to setting financial goals.

2. Define Your Financial Goals

Setting realistic financial goals is fundamental in preparing an effective financial plan. So, it would help to outline your long-term strategies and goals at the beginning of your financial planning process.

Let’s understand it this way—if you are a SaaS startup pursuing VC financing rounds, you may ask investors about what matters to them the most and prepare your financial plan accordingly.

However, a coffee shop owner seeking a business loan may need to create a plan that appeals to banks, not investors. At the same time, an internal financial plan designed to offer financial direction and resource allocation may not be the same as previous examples, seeing its different use case.

Feeling overwhelmed? Just define your financial goals—you’ll be fine.

You can start by identifying your business KPIs (key performance indicators); it would be an ideal starting point.

3. Choose the Right Financial Planning Tool

Let’s face it—preparing a financial plan using Excel is no joke. One would only use this method if they had all the time in the world.

Having the right financial planning software will simplify and speed up the process and guide you through creating accurate financial forecasts.

Many financial planning software and tools claim to be the ideal solution, but it’s you who will identify and choose a tool that is best for your financial planning needs.

Create a Financial Plan with Upmetrics in no time

Enter your Financial Assumptions, and we’ll calculate your monthly/quarterly and yearly financial projections.

Start Forecasting

4. Make Assumptions Before Projecting Financials

Once you have a financial planning tool, you can move forward to the next step— making financial assumptions for your plan based on your company’s current performance and past financial records.

You’re just making predictions about your company’s financial future, so there’s no need to overthink or complicate the process.

You can gather your business’ historical financial data, market trends, and other relevant documents to help create a base for accurate financial projections.

After you have developed rough assumptions and a good understanding of your business finances, you can move forward to the next step—projecting financials.

5. Prepare Realistic Financial Projections

It’s a no-brainer—financial forecasting is the most critical yet challenging aspect of financial planning. However, it’s effortless if you’re using a financial planning software.

Upmetrics’ forecasting feature can help you project financials for up to 7 years. However, new startups usually consider planning for the next five years. Although it can be contradictory considering your financial goals and investor specifications.

Following are the two key aspects of your financial projections:

Revenue Projections

In simple terms, revenue projections help investors determine how much revenue your business plans to generate in years to come.

It generally involves conducting market research, determining pricing strategy , and cash flow analysis—which we’ve already discussed in the previous steps.

The following are the key components of an accurate revenue projection report:

• Market analysis
• Sales forecast
• Pricing strategy
• Growth assumptions
• Seasonal variations

This is a critical section for pre-revenue startups, so ensure your projections accurately align with your startup’s financial model and revenue goals.

Expense Projections

Both revenue and expense projections are correlated to each other. As revenue forecasts projected revenue assumptions, expense projections will estimate expenses associated with operating your business.

Accurately estimating your expenses will help in effective cash flow analysis and proper resource allocation.

These are the most common costs to consider while projecting expenses:

• Fixed costs
• Variable costs
• Employee costs or payroll expenses
• Operational expenses
• Marketing and advertising expenses
• Emergency fund

Remember, realistic assumptions, thorough research, and a clear understanding of your market are the key to reliable financial projections.

6. Consider “What if” Scenarios

After you project your financials, it’s time to test your assumptions with what-if analysis, also known as sensitivity analysis.

Using what-if analysis with different scenarios while projecting your financials will increase transparency and help investors better understand your startup’s future with its best, expected, and worst-case scenarios.

Exploring “what-if” scenarios is the best way to better understand the potential risks and opportunities involved in business operations. This proactive exercise will help you make strategic decisions and necessary adjustments to your financial plan.

7. Build a Visual Report

If you’ve closely followed the steps leading to this, you know how to research for financial projections, create a financial plan, and test assumptions using “what-if” scenarios.

Now, we’ll prepare visual reports to present your numbers in a visually appealing and easily digestible format.

Don’t worry—it’s no extra effort. You’ve already made a visual report while creating your financial plan and forecasting financials.

Check the dashboard to see the visual presentation of your projections and reports, and use the necessary financial data, diagrams, and graphs in the final draft of your financial plan.

Here’s what Upmetrics’ dashboard looks like:

8. Monitor and Adjust Your Financial Plan

Even though it’s not a primary step in creating a good financial plan, it’s quite essential to regularly monitor and adjust your financial plan to ensure the assumptions you made are still relevant, and you are heading in the right direction.

There are multiple ways to monitor your financial plan.

For instance, you can compare your assumptions with actual results to ensure accurate projections based on metrics like new customers acquired and acquisition costs, net profit, and gross margin.

Consider making necessary adjustments if your assumptions are not resonating with actual numbers.

Also, keep an eye on whether the changes you’ve identified are having the desired effect by monitoring their implementation.

And that was the last step in our financial planning guide. However, it’s not the end. Have a look at this financial plan example.

Startup Financial Plan Example

Having learned about financial planning, let’s quickly discuss a coffee shop startup financial plan example prepared using Upmetrics.

Important Assumptions

• The sales forecast is conservative and assumes a 5% increase in Year 2 and a 10% in Year 3.
• The analysis accounts for economic seasonality – wherein some months revenues peak (such as holidays ) and wanes in slower months.
• The analysis assumes the owner will not withdraw any salary till the 3rd year; at any time it is assumed that the owner’s withdrawal is available at his discretion.
• Sales are cash basis – nonaccrual accounting
• Moderate ramp- up in staff over the 5 years forecast
• Barista salary in the forecast is $36,000 in 2023.
• In general, most cafes have an 85% gross profit margin
• In general, most cafes have a 3% net profit margin

Projected Balance Sheet

Projected Cash-Flow Statement

Projected Profit & Loss Statement

Break Even Analysis

Start Preparing Your Financial Plan

We covered everything about financial planning in this guide, didn’t we? Although it doesn’t fulfill our objective to the fullest—we want you to finish your financial plan.

Sounds like a tough job? We have an easy way out for you—Upmetrics’ financial forecasting feature. Simply enter your financial assumptions, and let it do the rest.

So what are you waiting for? Try Upmetrics and create your financial plan in a snap.

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Frequently Asked Questions

How often should i update my financial projections.

Well, there is no particular rule about it. However, reviewing and updating your financial plan once a year is considered an ideal practice as it ensures that the financial aspirations you started and the projections you made are still relevant.

How do I estimate startup costs accurately?

You can estimate your startup costs by identifying and factoring various one-time, recurring, and hidden expenses. However, using a financial forecasting tool like Upmetrics will ensure accurate costs while speeding up the process.

What financial ratios should startups pay attention to?

Here’s a list of financial ratios every startup owner should keep an eye on:

• Net profit margin
• Current ratio
• Quick ratio
• Working capital
• Return on equity
• Debt-to-equity ratio
• Return on assets
• Debt-to-asset ratio

What are the 3 different scenarios in scenario analysis?

As discussed earlier, Scenario analysis is the process of ascertaining and analyzing possible events that can occur in the future. Startups or businesses often consider analyzing these three scenarios:

• base-case (expected) scenario
• Worst-case scenario
• best case scenario.

About the Author

Ajay is a SaaS writer and personal finance blogger who has been active in the space for over three years, writing about startups, business planning, budgeting, credit cards, and other topics related to personal finance. If not writing, he’s probably having a power nap. Read more

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How to Make a Financial Plan In 7 Steps (Free Template)

R.J. Weiss, CFP®

• Updated January 26, 2024

A joint study between the Consumer Federation of America and the CFP Board found that 48% of households with a financial plan described themselves as “living comfortably.” Those without a plan expressed that sentiment only 22% of the time.

This guide outlines seven simple steps to develop a financial plan, regardless of your income or financial situation.

Here’s an overview of the seven steps we’ll cover:

• Set your values . 
• Create a net worth statement . 
• Analyze your current spending . 
• Pick short-term financial goals . 
• Design and automate your cash flow plan . 
• Monitor your KPIs .
• Make adjustments . 

We’ve also created a one-page PDF to walk you through each step, which you can download here . 

Big Ideas About Financial Planning

• It’s easier to become a great planner and saver than it is to beat the market or make millions of dollars . Beating the market or scoring a windfall of cash is difficult and rare. Yet this is what a lot of people rely on in order to realize their goals. Financial planning, on the other hand, is far easier and completely within your control. 
• Cash flow planning is the most important aspect of financial planning . Most people equate financial planning with managing an investment portfolio. But it’s far more important for most households to focus on cash flow planning (which is simply deciding what to do with your income). 
• Financial planning is about maximizing opportunity costs . That means knowing which goals to prioritize, while understanding that you can’t accomplish all your goals at the same time.

What Is a Financial Plan?

A financial plan is a document that outlines your current financial situation, future goals, and the steps you need to take to achieve those goals.

At its core, a financial plan answers three key questions:

• What is your current financial situation? This is assessed by creating a net worth statement and analyzing your spending habits.
• Where do you want to be in the future? This involves setting inspiring yet realistic financial goals . 
• How will you get there? A financial plan maps out a cash flow strategy to direct income towards priority goals, and tracks progress through key metrics.

The format of a financial plan can vary from a single page to a more detailed spreadsheet. Regardless of the format, the purpose is to provide clarity, direction, and strategies to improve your financial well-being. 

Step #1: Identify Your Financial Values

There’s more to having a financial plan than setting financial goals, such as paying off debt, building an emergency fund or saving for retirement .

A well-thought-out financial plan connects these goals to something deeper — to your “why.” 

This “why” is what I like to call your financial values.

Think of financial values as a set of two or three core ideas that guide your financial decision-making.

What’s important is that these values resonate with you personally. While they can vary widely between different people, I find that they typically fall into one of six categories:

• Security . Valuing a stable and predictable financial future.
• Accumulation . The focus is to grow a number, such as your total net worth, over time. 
• Freedom . Prioritizing the ability to make life choices without financial constraints.
• Generosity . The desire to give back and help others.
• Enjoyment . Spending on experiences and items that bring joy.
• Family . Ensuring the well-being and financial stability of loved ones.

The question I find most helpful here is this:

“When I look back on my life many years from now, which financial values will I most regret choosing not to prioritize?”

With that question in mind, take time now to choose the values most important to you and write them down in your financial plan. 

While the general categories above are a good starting point, feel free to put your own spin on this exercise. Your values are your own.

Step #2: Create a Net Worth Statement

A net worth statement, also known as a balance sheet or a personal finance statement, is a summary that shows you the value of what you own (assets) minus what you owe (liabilities).

Measuring progress is easier when a simple metric (such as net worth) tells you how you’re doing. If it’s increasing, great! If it’s not, you’ll need to consider changing financial strategies.

To get started, use our net worth template , available via Google Sheets (click the “Make a Copy” button when prompted), to help you calculate this number.

With the spreadsheet open, you’ll want to do the following: 

• List and value your assets . For most people, this includes bank account balances, retirement accounts, taxable investments, real estate and vehicles.
• List your liabilities . Include all debts, such as credit card balances, student loans, your mortgage, auto loans, and any other commitments for which you have borrowed funds. 

The spreadsheet will then subtract your total liabilities from your total assets. 

The figure you get from this calculation is your current net worth.

Don’t freak out if your net worth is a negative number! The point is simply to make yourself aware of your current financial reality, and then to create a plan for increasing the number over time. 

Step #3: Analyze Your Current Spending

With your net worth statement in hand, the next step is to analyze your current spending habits, checking for areas that are out of balance. 

The easiest way to do this is by using the framework of the 50/30/20 budget .

The 50/30/20 budget allocates your income into three categories:

• 50% for needs , such as housing, food, transportation, education and healthcare. 
• 30% for wants , such as gym memberships, eating out and travel.
• 20% for savings , including debt repayments, 401(K) contributions, and saving up for an emergency fund .

Your task is to analyze your past three months of spending to see what your percentages were for needs, wants and savings. Then, fill in the “Current” pie chart in the financial planning template with these percentages.

Pro tip : I recommend using one of the many free personal finance budgeting apps to get this data. 

Step #4: Choose Your Financial Goals

At first glance, many financial goals sound boring. Who wakes up excited to save for retirement or build an emergency fund ? 

That’s why it’s important to tie financial goals to bigger life goals. 

For example, an emergency fund allowed me, as the sole income provider for a family of five, to leave the comfort of a job I held for 10 years and run this website full-time. 

Building my own business was a goal I’d had for years, and a proper emergency fund (as well as a very supportive wife) helped me make that happen.

When it comes to choosing financial goals, here are three helpful tips as outlined by the financial psychologist Brad Klontz :

• Pick up to three goals that would rank at least a 9 out of 10 on the excitement scale. 
• Give your goals an exciting name — think “financial freedom” rather than “retirement savings.”
• Give each goal a deadline, such as, “I’m debt-free by January 1, 2027!”

Your current financial situation will play a large role in the timeframe of your goals. If you’re living paycheck to paycheck, focusing on short-term goals is best.

While you want to have a long-term vision of where you want to go — e.g., saving up for a down payment on a home and retirement — focus (for now) on shorter-term goals that will allow you to get to that point.

Pro tip : If you have high-interest debt (like credit card debt) and no emergency fund, familiarize yourself with the Baby Steps process . This easy-to-understand framework will help you prioritize your financial goals. 

If you have a solid foundation, such as some cash in the bank and the ability to allocate money towards goals each month, you might have a combination of short-term and long-term goals. 

The aim is to have one to three goals you’re looking forward to and motivated to accomplish. 

If you want to take a deep dive into financial goal setting, enter your email address in the form below to get access to our free workbook:

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Step #5: Design Your Cash Flow Plan

Cash flow planning — i.e., how you decide to allocate your income — is the most important aspect of financial planning. 

In Step #3, you analyzed your spending to determine where your money has gone, dividing it into needs, wants and savings. 

The idea here is to take your financial goals and design a spending plan around these goals. 

For example, imagine your take-home pay is $5,000 per month and your current spending is allocated as follows:

• Needs : $2,500 (50% of your income) for essentials like housing, utilities, groceries and transportation.
• Wants : $1,500 (30% of your income) for discretionary items such as eating out, entertainment and hobbies.
• Savings : $1,000 (20% of your income).

Now, integrate the financial goals you choose in Step #4 into this plan. 

Let’s assume today is January 1st, 2024, and we have the following goals:

• Dream Vacation Fund : Save $200 per month with the aim to accumulate enough for your vacation by January 1st, 2026.
• Sleep Better Fund : Build a $12,000 emergency fund by July 1st, 2025, which requires savings of $667 per month.  
• Financial Freedom Fund : Consistently contribute 6% of your income ($300 of your current salary) towards your 401(K), to get the full employer match.

All in all, your goals require you to :

• Save $200 per month for a vacation fund.
• Save $667 per month towards an emergency fund.
• Save $300 per month towards retirement.

This requires $1,166 of savings per month, which is over your current 20% of savings.

So you have two choices :

• Adjust your goals to fit within your $1,000 per month allocated savings.
• Save more by cutting from other areas — e.g., your needs and wants — to make up for the shortfall.

The choice is yours. But the important thing is to understand what the opportunity cost is upfront, keeping in mind that financial planning is about making sure you prioritize what matters to you.

The final step here is to set up automatic transfers to align with your paycheck dates. If your direct deposit hits on the 1st and 15th, schedule transfers for shortly thereafter. 

For example :

• Transfer #1: $333 to your emergency fund on the 3rd and 17th of each month.
• Transfer #2: $100 to your Dream Vacation Fund on the 3rd and 17th.
• The 401(k) contribution will be completed automatically by your employer. 

Transfers should go to separate savings accounts, so you understand this money is separate for your everyday living expenses. 

Lastly, in the financial planning template, fill in the “Target” spending plan to reflect the ideal distribution of your income across needs, wants, and goals, detailing the automatic transfers you’ll set up to ensure these goals are achieved.

Bank organizational tips : While some banks allow you to create sub-savings accounts, many do not. If you’re not willing to switch banks to one that does, alternatives are as follows: If your bank has a checking and a savings, utilize the savings for your goal. Have your income get funneled into your checking, which should be enough to cover your bills and make payments towards your goals. (This only works if you have one goal and don’t currently utilize the savings account.) Or, you can utilize your investment brokerage account’s money market fund or cash management account. Finally, you can open a new bank account just for that. Overall, I find it very helpful not to mix multiple goals into one savings account, as it’s easier to track the progress towards each when they’re separate. 

Step #6: Monitor Your KPIs

A KPI, or key performance indicator, is a business term for a variable that helps you analyze your current situation. In other words, KPIs are facts and figures that tell you whether you’re trending in the right or wrong direction. 

When it comes to financial planning, your KPIs should show you exactly how you’re progressing towards your financial goals. 

For example, if your goal is to build an emergency fund of three months of expenses, your KPI could be:

KPI = Current Emergency Fund Savings / (Monthly Expenses X 3)

One trick for setting powerful KPIs is to track the date you’re on-target to accomplish your goal. 

For example, instead of saving a certain amount for retirement, track the age at which you’ll achieve financial independence .

Or, instead of tracking the total amount of debt, track the date you’ll pay off your debt. (We’ve designed a free spreadsheet to help you do this, which you can read more about here .) 

Why choose dates over dollar amounts? In my experience, dates are far more motivating. In addition, they often tell a more realistic story about your progress. 

Of course, KPIs are going to depend on your goals (which depend on your values!) but here are some of the most common KPIs in personal finance:

• Emergency fund size
• Savings rate
• Credit score
• Projected retirement age number
• Time until you reach a goal (e.g., paying off debt)

Step #7: Make Adjustments

KPIs are only useful when used over time as a way to measure your progress. If the date you’re expected to be debt-free is getting farther and farther away, it should be obvious that more changes are needed. 

The most important thing you need to understand about financial goal setting is that the speed at which you achieve your goals comes down to the gap between your income and expenses. 

Benjamin Franklin said:

“There are two ways to increase your wealth. Increase your means or decrease your wants. The best is to do both at the same time.”

Saving money, at first, is often a lot easier than earning more. However, saving money comes with diminishing returns. In other words, before long you’re driving across town to save three cents a gallon on gas. 

Making money, on the other hand, is far more scalable. There’s no limit to how much you can make. 

As such, once you make some smart moves to get your spending down , it’s best to shift your effort towards making money.

Final Thoughts On Financial Planning For Non-Millionaires

A 2015 study by Dr. Nathan Hudson and Dr. Chris Fraley found that personality can be changed through goal setting and continuous effort .

A lot of people avoid financial goal setting and planning because they think they’re not good with money — that personal finance, or money in general, is something they’ll just never be good at because of some inherent trait. 

The truth is the opposite. Research shows that through goal setting, and putting in the effort to achieve those goals, you can indeed change how you think about yourself. And that can fundamentally reshape your financial future.

For example, you can change yourself from someone who thinks they’re not good at managing money to a diligent and disciplined saver, a high income earner, or the type of person that retires early. 

You get to choose. It all starts with setting the right goals and putting the right plan in place to see those goals through to completion.

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8 Keys to Good Financial Plans

While there are many ways to go about developing a financial plan—do it yourself, use a robo-advisor, work with a financial planner, or a combination thereof—Schwab has identified eight critical components every plan should include, regardless of the method used to create it. So, what does a good financial plan look like?

1. Setting financial goals

You can't make a financial plan until you know what you want to accomplish with your money—so whether you're creating it yourself or working with a professional, your plan should start with a list of your goals, both big and small, and the time horizons to accomplish them. Doing so can help to organize each objective by how soon you'll need the money:

• Short-term goals are those you hope to achieve in the next five years, such as paying off debt or building an emergency fund.
• Medium-term goals are those you hope to achieve in the next five to 10 years, such as the down payment on a home or starting your own business.
• Long-term goals are those that are 10 or more years away, including saving for college and, of course, retirement.

For each goal, specify a dollar figure and a target date. "The more specific your goals, the easier it is to measure your progress toward them," said Rob Williams, managing director of financial planning at the Schwab Center for Financial Research.

A host of online tools can help you run the numbers, weigh competing priorities, and determine the best course of action for you. Also, if you have multiple goals to work toward, a robo-advisor, or automated investing platform, can help you weigh the importance of each goal, ranking them by needs, wants, and wishes.

Any time is a good time to establish a financial plan.

Ideally, you start investing for financial goals early in life, but any time is a good time to check in on your current financial situation and assess how you're doing. Are you still on track? Do you have other goals you hadn't previously considered? Having a financial plan helps you assess where you are today and where you want to go next.

2. Net worth statement

Knowing your net worth today can serve as a baseline for framing your financial goals and setting a target for your net worth at some point in the future, like in retirement. To determine your net worth, make a list of all your assets (bank and investment accounts, real estate, valuable personal property) and another one of all your debt (credit cards, mortgages, or student loans). Your assets minus your liabilities equals your net worth.

"Don't be discouraged if your liabilities outweigh your assets," Rob said. "That's not uncommon when you're just starting out—especially if you have a mortgage and student loans."

3. Budget and cash flow planning

Your budget is really where the rubber meets the road, planning-wise. It can help you determine where your money is going each month and where you can cut back to meet your goals.

A budget calculator can help ensure you don't overlook irregular but important expenses, such as car repairs, out-of-pocket health care costs, and real estate taxes. As you're compiling your list, separate your expenses into two buckets: must-have items like groceries and rent, and nice-to-haves like eating out and gym memberships.

When considering how your goals fit into your budget, you may want to pressure-test it using "what if" scenarios: What if you want or need to retire earlier? What if you downsized your mortgage? Some robo-advisors offer tools that allow you to adjust certain assumptions to see how they could affect your savings strategy.

4. Debt management plan

Debt is sometimes treated like a four-letter word, but not all debt is bad debt. A mortgage, for example, can help build equity—and boost your credit score in the bargain. High-interest consumer debt like credit cards, on the other hand, can weigh heavily on your credit score. Plus, every dollar you pay in finance charges and interest is one you can't put toward other goals.

If you have high-interest debt, make sure you create a plan that can help you pay it off as quickly as possible. If you're not sure where to start, a financial advisor can help you prioritize, then determine how much of your budget should go toward your debt each month.

5. Retirement plan

An old guideline says you'll need approximately 80% of your present income in retirement. However, this assumes that retiring will free you from any work-related expenses, that you've paid off your mortgage, that any children will be financially independent, and you'll likely fall into a lower tax bracket.

It's also important to keep in mind that Medicare doesn't cover everything, and health care expenses that Medicare doesn't cover—such as long-term care—can add up quickly. You also might spend more on other things in retirement, like travel, dining out, gifts, or financial support to a relative or friend.

Plugging in different scenarios into a retirement savings calculator can help you figure out what you may need in retirement. 

Don't count on the 80% rule 

If you're saving 20% – 30% of your pre-retirement income, then the 80% income-replacement rule is a good place to start. Otherwise, it's safer to aim at covering 100% of your pre-retirement income, minus whatever you're saving for retirement . As with any general rule, there are plenty of exceptions. So be sure to sit down and fine-tune your retirement budget as the time draws near. This should be your top priority because you can borrow for most other goals but not for retirement.

6. Emergency funds

When something unexpected happens—say you lose your job or get hit with an unexpected medical bill—an emergency fund can help you avoid tapping your long-term savings to make ends meet.

It's generally a good idea to save enough to cover at least three months'—but ideally six months'—worth of essential living expenses (for example, groceries, housing, transportation, and utilities). Save this money in a checking or savings account so you can access it in a hurry should the need arise.

7. Insurance coverage

Insurance is an important part of protecting your financial downside—but try to ensure you're not overpaying for coverage you don't need and make sure to cover all your bases:

• Health insurance : Without it, even routine care can cost a pretty penny, while a serious injury or hospital stay could set you back tens of thousands of dollars. As you get older, you may want to consider long-term care insurance , as well.
• Disability insurance : This coverage protects you and your family in case you're unable to work. Employer-provided disability insurance typically replaces about 60% of your salary.
• Auto and homeowners'/renters' insurance : If you own a car or home—or rent and can't afford to replace possessions out of pocket—make sure you're adequately protected.
• Life insurance : This is generally a good idea for those with dependents. Work with an insurance agent to understand what type of—and how much—coverage makes the most sense for you.

8. Estate plan

At a minimum, most people want a will in place, which states your final wishes with regards to your assets, dependents, and who you want to administer your estate. You should also keep the beneficiaries of your insurance policies and retirement accounts up to date. Also consider establishing powers of attorney for financial and health care decisions, in case you become incapacitated.

For help getting started or tackling more complex estate-planning tasks, consider working with an estate attorney or a qualified financial planner.

Learn more about financial planning

5 times in life when financial planning matters most.

• Financial Advisor
• Financial Planning

Financial Plans: Meaning, Purpose, and Key Components

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What Is a Financial Plan?

Understanding a financial plan.

• When to Create It
• How to Create It
• Financial Plan FAQs

The Bottom Line

Liz Manning has researched, written, and edited trading, investing, and personal finance content for years, following her time working in institutional sales, commercial banking, retail investing, hedging strategies, futures, and day trading. 

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

A financial plan is a document that details a person’s current financial circumstances and their short- and long-term monetary goals. It includes strategies to achieve those goals.

A financial plan can help you to establish and plan for fundamental needs, such as managing life's risks (e.g., those involving health or disability), income and spending, and debt reduction.

It can provide financial guidance so that you're prepared to meet your obligations and objectives. It can also help you track your progress throughout the years toward financial well-being.

Financial planning involves a thorough evaluation of one’s money situation (income, spending, debt, and saving) and expectations for the future. It can be created independently or with the help of a certified financial planner .

Key Takeaways

• A financial plan documents an individual’s short- and long-term financial goals and includes a strategy to achieve them.
• The plan should be comprehensive and highly customized.
• It should reflect an individual’s personal and family financial needs, investment risk tolerance, and plan for saving and investing.
• Planning in finance starts with a calculation of one’s current net worth and cash flow.
• A solid financial plan provides guidance over time and serves as a way to track progress toward your goals.

The Fundamentals of Financial Plans

Whether you’re going it alone or with a financial planner, the first step in creating a financial plan is to understand how important it can be to your financial future. It can provide the guidance that assures your financial success.

Start your planning effort by gathering information from your various financial accounts into a document or spreadsheet.

Then make some basic calculations that establish where you stand financially.

You may complete the following steps as an individual or a couple:

Calculate Net Worth

To calculate your current net worth , subtract the total for your liabilities from the total for your assets. Begin by listing and adding up all of the following:

• Your assets : An asset is property of value that you own. Assets may include a home, a car, cash in the bank, money invested in a 401(k) plan , and other investments accounts.
• Your liabilities : A liability is something you owe. Liabilities may include outstanding bills, credit card debt, student debt, a mortgage, and a car loan.

Determine Cash Flow

Cash flow is the money you take in measured against the money you spend. To create a financial plan, you must know your income as well as how and when your money is spent.

Documenting your personal cash flow will help you determine how much you need every month for necessities, how much is available for saving and investing, and where you can cut back on spending.

One way to get this done is to review your checking account and credit card statements. Collectively, they should provide a fairly complete history of your income and spending in a wide range of spending categories.

For example, document how much you’ve paid during the year for housing expenses like rent or mortgage payments, utilities, and credit card interest.

Other categories include food, household (including clothing), transportation, medical insurance, and non-covered medical expenses. Still others can include your spending on miscellaneous entertainment, dining out, and vacation travel.

Once you add up all these numbers for a year and divide by 12, you’ll know what your monthly cash flow has been (and where you can improve it).

When establishing your cash flow history, don’t overlook cash withdrawals that may have been used on sundries, from take-out, to shampoo, to sodas. ATM withdrawals can also highlight where you might cut unnecessary spending.

Establish Your Goals

A major part of a financial plan is a person’s clearly defined goals . These may include funding a college education for the children, buying a larger home, starting a business, retiring on time, or leaving a legacy.

No one can tell you how to prioritize these goals. However, a professional financial planner should be able to help finalize a detailed savings plan and specific investing that can help you reach them one by one.

The main elements of a financial plan include a retirement strategy, a risk management plan, a long-term investment plan, a tax reduction strategy, and an estate plan.

Benefits of a Financial Plan

• A financial plan involves a thorough examination of your income and spending.
• It can improve your understanding of your financial circumstances at all times.
• It establishes important short- and long-term financial goals.
• It clarifies the actions required of you to achieve your various financial goals.
• A financial plan can focus your attention on important immediate steps, such as reducing debt and building your savings for emergencies.
• It enhances the probability that you'll achieve financial milestones and overall financial success (however you define it).
• It can guide your efforts over time and provide a means to monitor your progress.
• It can keep you out of financial trouble and reduce the stress and worry you may have experienced in the past.

Reasons for a Financial Plan

Financial planning is a smart way to keep your financial house in order. It's a money tool for everyone, regardless of age, earnings, net worth, or financial dreams. It offers individuals a way to document their personal goals and corresponding financial goals. It can keep people on track to meet ongoing financial needs and major financial goals.

When to Create a Financial Plan

A financial plan is always an advantage for those who want to make sure that they manage their finances in ways that are best-suited for them. You can create one at any time, whether you've just joined the workforce or have been working for years.

Beyond that, here are some particular instances that call for the creation and use of a financial plan. They can also serve as signals to adjust existing plans.

• A new job that results in added income, new expenses, or new opportunities
• An income change that can affect your ability to pay expenses, pay off debt, or save
• Major life events such as marriage, children, or divorce that can change financial objectives and spending needs
• Health adversities that result in re-directing income and spending away from existing goals
• An income windfall, such as an inheritance or insurance payment, that can affect efforts to reach your financial goals (such as providing more money for investing and debt reduction)

How to Create a Financial Plan

Certain steps are needed to create a financial plan. In addition to calculating your net worth, determining your cash flow, and establishing financial goals, as outlined above, here are additional plan elements/steps to include.

Do It Yourself or Get Professional Help

Decide whether you'll create your financial plan on your own or with the help of a licensed financial planner . While you can certainly build a financial plan, a financial pro can help ensure that your plan covers all the essentials.

Build an Emergency Cash Fund

Based on what your cash flow allows, start setting aside enough money in a liquid account to cover all your expenses for at least 6 months (preferably, for twelve) if you find yourself without income due to unexpected events.

Plan to Reduce Debt and Manage Expenses

If you have debt, the faster and more effectively that you can eliminate it, the better for the growth of your savings, your standard of living, and the achievement of specific financial objectives.

Make it a habit to cut expenses whenever possible so that you can add to your savings. In addition, stay on top of expenses that you know you'll have, such as taxes, so you always meet those obligations on time.

Manage Potential Risks

Your financial well-being can be affected when accidents, health problems, or the death of loved ones strike. Plan to put into place the appropriate insurance coverage that will protect your financial security at such times. This coverage can include home, property , health, auto, disability , personal liability , and life insurance.

Plan to Invest

Take part in a retirement plan at work that automatically deducts contributions from your paycheck. And plan to maximize your tax-advantaged investing with a personal IRA if and when your income allows.

Also, consider how you might allocate any other available income to a taxable investment account that can add to your net worth over time. Your plan for investing should take into account your investment risk tolerance and future income needs.

Include a Tax Strategy

Address the goal of reducing your income taxes with tax deductions, tax credits, tax loss harvesting, and any other opportunities that are legally available to taxpayers.

Consider an Estate Plan

It's important to make arrangements for the benefit and protection of your heirs with an estate plan . The details will depend on your stage in life and whether you're married, have children, or have other legacy goals.

Monitor and Adjust Your Financial Plan

Revisit your plan at least yearly (on your own or with a financial professional) and more often if a change in circumstances affects your financial situation. Keep it working efficiently and effectively by adjusting it as needed.

What Is the Purpose of a Financial Plan?

A financial plan should help you make the best use of your money and achieve long-term financial goals, such as sending your children to college, buying a bigger home, leaving a legacy, or enjoying a comfortable retirement.

How Do I Write a Financial Plan?

You can write a financial plan yourself or enlist the help of a professional financial planner. The first step is to calculate your net worth and identify your spending habits. Once this has been documented, you need to consider longer-term objectives and decide on the ways to achieve them.

What Are the Key Components of a Financial Plan?

Financial plans aren't one-size-fits-all, although the good ones tend to focus on the same things. After calculating your net worth and spending habits, you’ll explore your financial goals and ways to achieve them. Usually, this involves some form of budgeting , saving, and investing each month. To ensure that you live comfortably and financially stress-free for the rest of your life, the areas to focus on include an emergency savings plan, a retirement plan, risk management, a long-term investment strategy, and a tax minimization plan.

A financial plan is an essential planning tool for your financial well-being, now and into the future. It involves setting down the current state of your finances, your various financial goals, and methods that can help you achieve them.

It's never too early or late to create a financial plan. And no matter the amount of money that you have, a financial plan can help you to determine the best way to put it to work so that you can meet your financial needs through all of your life stages.

• Financial Plans: Meaning, Purpose, and Key Components 1 of 14
• How To Conduct a Financial Checkup 2 of 14
• How to Manage Lifestyle Inflation 3 of 14
• Your Annual Financial Planning Checklist 4 of 14
• Financial Planning: Can You Do It Yourself? 5 of 14
• The Importance of Making an Annual Financial Plan 6 of 14
• What Is Retirement Planning? Steps, Stages, and What to Consider 7 of 14
• 10 Steps to Financial Security Before Age 30 8 of 14
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Financial Planning Methods: 3 Types & Excel Examples

Financial planning can make the difference between success and failure for companies in today’s dynamic markets. In most companies, Financial Planning & Analysis (FP&A) teams are responsible for outlining financial plans using an analytical toolbox to deliver consistent and flexible insights that feed the corporate decision-making process. Financial planning methods are the fundamental elements in this FP&A toolbox .

The purpose of this article is to outline 3 financial planning methods and how to execute those methods in Microsoft Excel, as well as 2 types of financial planning into which it all fits.

Financial planning methods:

• Budget and business planning

Cash flow planning

Funds planning.

Types of Financial Planning:

• Organic growth planning
• Strategic growth planning

How financial planning works: developing a financial plan

Before we jump into methods and techniques, you need to understand how financial planning works in a company. At a high level, it happens in these three steps:

• Qualitative outline . Business decision-makers outline what the company will need in order to better serve its customers in a period of at least the next 365 days .
• Quantitative outline . Financial analysts use the qualitative plan to determine how much it will cost, how much revenue it is expected to generate, if the company can afford to fund the plan, and if not, how to fund it.
• Revision of the qualitative plan . Perhaps the most painful step, revision is the process by which financial analysts explain how the strategic qualitative plan may negatively impact the company financially . They must then make suggestions on how to modify the plan. It’s painful because, in most companies, business decision-makers don’t like changing their plans. (Honestly, does anyone like changing their plans?)

These steps stand in opposition to popular opinion, which says that financial planning is a complex, math-heavy process that requires advanced studies to implement. This is far from the truth. In reality, financial planning is the process of reflecting the financial impact of strategic business decisions.

In most companies, sales, executive, and product departments make suggestions for how the business should pursue better serving its existing customers or serve new customers over a period of at least one year, and in most cases 5 years . This part of the financial plan is the qualitative section .

It is the most important section. Without a detailed qualitative explanation of what the business should do, the financial plan is nothing more than random numbers in Excel. In other words, financial planning starts with the qualitative plan and becomes the quantitative plan.

Financial planning basics

The basics of financial planning help weed out the myths that financial planning is complicated. Broken down, the essential components of a company are simple: costs, revenue, and funding. The basics of financial planning ask the following three questions:

• How much does it cost to buy the goods we need, and how expensive are our employees?
• How much will customers pay for the products we produce?
• How can we fund the costs of our plans if we don’t have enough cash on hand?

Complexity only enters the equation when we translate these basic concepts to the three financial statements , but don’t worry about those for now. Just remember the basics.

In a sentence, the basics of financial planning are:

• Costs of the plan,
• R evenues it will generate, and
• Funding needed to pay for the costs.

Methods used in financial planning

So, how do we analyze costs, revenues, and funding? We use the financial statements, and most importantly, the profit & loss statement (aka Income Statement, or P&L for short).

As a brief reminder, the P&L looks like this:

The process of completing the three financial statements with relevant information requires three financial planning methods :

• Budget & business planning,
• Cash flow planning, and
• Funds planning .

Let’s look at them in more detail.

Budget & business planning

Budget & business planning requires that we establish known costs and expected revenues for the first year (budget), then use growth metrics to project costs and revenues going forward (business plan) .

The easiest way to understand budget and business planning is with an example. Imagine you run an e-commerce business called Batch Watch that sells watches to retailers. You would like to move into luxury watches, since you currently sell only running watches. The luxury watch will be called Gamma .

You’ve looked at your competitors, and you think you can sell Gamma watches for $750 each (unit revenue). To build the watches, you need to spend $450 on glass and metal per watch, and you need a special machine to work with high quality metals. The machine costs $500,000 and lasts 10 years.

As your financial analyst, I’m going to first build a P&L to show how profitable this venture could be. I assume that the company will sell 1/4 as many luxury watches as running watches, which comes out to 1,000 in the first year. Here’s how profitable it could be:

Now that we have the 1st year budget , we can use growth metrics to see what this will look like over the next 5 years.

We assume that the revenues will grow by 1% year-over-year. CoS will always remain the same proportion of revenues (450/750, or 60% ). Depreciation remains the same each year, and the tax rate will not change. A 5-year profitability business plan, thus, could look like the following:

Now we know the project would be profitable given our assumptions about revenue and growth rates, but we need to see if Batch Watch has enough cash to start the project, and how much it might need over time.

The reason we look at cash as separate from profitability is due to two financial phenomenon: purchases on credit (aka accounts receivable ), and depreciation . Accounting principles dictate that we record revenues at the time they are delivered, not when cash arrives. This means that if Batch Watch allows retailers to pay for watches 30 days after delivery, the company sustains a cost without any cash inflow for that month.

At the same time, Batch Watch has to bear the weight of the $500,000 for the luxury machine. While on the P&L profitability view, we only show $50,000 on the books each year for tax purposes, we had to pay all $500k up front in year 1.

In other words, we need roughly $950,000 in cash during year 1 to start making the luxury watches. But that’s not the only concern. We also need to see how long it will take for Batch Watch to be paid on average for its watches so the company never goes cash negative even after the initial $950k payment.

The easiest way to do this is with a cash flow schedule . Cash flow schedules simply show the starting amount of cash, plus inflows, and minus outflows over time. Let’s assume Batch Flow has 800k in cash as of January 1st, at which point it wants to launch the project. A cash flow schedule might look like the following:

As you can see, we start with $800k in the bank. The initial $500k purchase for the machine, as well as a subsequent $225k purchase for watch raw materials bring Batch Watch cash level down considerably. While we start to see some interest with $75,000 purchases in March, we become cash negative in April with another $225k purchase of raw materials.

This cash flow schedule helps us understand that while we may be profitable from a P&L view, we would not be cash positive. So what do we do when we need more cash to fund activities? We turn to the third financial planning method: funds planning .

Funds planning (or funding for short), is the process by which analyst find external funding for financial plans. The funding process is usually the last step in quantitative financial planing, since most companies are only interesting in taking on external funding when 1. they know that the project will be profitable, and 2. that their cash flow will be negative without it .

Once you have outlined your cash flow projection, you know how much money you will need, and when. The next step is simply to decide what kind of outside funding the company will use. There are two types of funding available:

• Loans. Without a doubt, loans are the number one source of funding in financial planning for stable companies. In a sentence, you use a loan to get a surge of cash inflows, then pay it back in manageable installments over time. While consumers are most familiar with mortgage-type loans, the most common types for business are revolving credit facilities , or RCFs . RCFs allow companies to draw down small sums within a given limit, then reimburse it with monthly accumulated interest.
• Equity. Equity is a much more common option for growth-phases companies that need huge cash injections to launch their products. By issuing or selling equity, company shareholders “give up” parts of their ownership in order to raise huge sums, and fast.

Let’s look back to our example cash flow schedule. We saw that in the month of April, Batch Watch went cash negative. In order to prevent this, we decide on a funding strategy. Since it’s a small amount, we decide to go with a RCF.

The brilliance of the RCF is that we can draw down the amount we need almost instantly when we’re approved. Take a look at this cash flow schedule that assumes we take the loan in April. We then start receiving more substantial orders.

(NOTE: one element I’m not including in the chart is the cost to reimburse the loan once it’s drawn down. RCF repayments are special in that the reimbursement plan is flexible. Much like a credit card, when you draw it down, you will accumulate interest until it’s reimbursed. No fancy mortgage payment calculations needed!)

Example in Excel

Organic financial planning vs. strategic financial planning.

There are two frameworks that guide financial planning methods: organic financial planning & strategic financial planning.

Organic financial planning uses budget & business planning, cash flow planning, and funds planning to show how a company can grow organically — that is, by excluding the use of external funds.

Strategic financial planning uses budget & business planning, cash flow planning, and funds planning to show how a company can grow through the use of divestitures, acquisition, and external funding.

Organic financial planning focuses on the use of company resources, instead of paying interest rates on loans and yielding equity ownership to generate cash. It’s a low-risk endeavor, but it’s slow.

Strategic financial planning focuses on rapid growth by leveraging external funding, taking on interest, and selling ownership for cash. It’s a high-risk endeavor, but it moves very, very quickly.

Analysts typically use these frameworks to guide assumptions about growth metrics and potential revenues in the profitability view. They use it to examine long term cash flow needs, and whether to include external cash in the funds planning.

About the Author

Noah is the founder & Editor-in-Chief at AnalystAnswers. He is a transatlantic professional and entrepreneur with 5+ years of corporate finance and data analytics experience, as well as 3+ years in consumer financial products and business software. He started AnalystAnswers to provide aspiring professionals with accessible explanations of otherwise dense finance and data concepts. Noah believes everyone can benefit from an analytical mindset in growing digital world. When he's not busy at work, Noah likes to explore new European cities, exercise, and spend time with friends and family.

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Research Topics & Ideas: Finance

120+ Finance Research Topic Ideas To Fast-Track Your Project

If you’re just starting out exploring potential research topics for your finance-related dissertation, thesis or research project, you’ve come to the right place. In this post, we’ll help kickstart your research topic ideation process by providing a hearty list of finance-centric research topics and ideas.

PS – This is just the start…

We know it’s exciting to run through a list of research topics, but please keep in mind that this list is just a starting point . To develop a suitable education-related research topic, you’ll need to identify a clear and convincing research gap , and a viable plan of action to fill that gap.

If this sounds foreign to you, check out our free research topic webinar that explores how to find and refine a high-quality research topic, from scratch. Alternatively, if you’d like hands-on help, consider our 1-on-1 coaching service .

Overview: Finance Research Topics

• Corporate finance topics
• Investment banking topics
• Private equity & VC
• Asset management
• Hedge funds
• Financial planning & advisory
• Quantitative finance
• Treasury management
• Financial technology (FinTech)
• Commercial banking
• International finance

Corporate Finance

These research topic ideas explore a breadth of issues ranging from the examination of capital structure to the exploration of financial strategies in mergers and acquisitions.

• Evaluating the impact of capital structure on firm performance across different industries
• Assessing the effectiveness of financial management practices in emerging markets
• A comparative analysis of the cost of capital and financial structure in multinational corporations across different regulatory environments
• Examining how integrating sustainability and CSR initiatives affect a corporation’s financial performance and brand reputation
• Analysing how rigorous financial analysis informs strategic decisions and contributes to corporate growth
• Examining the relationship between corporate governance structures and financial performance
• A comparative analysis of financing strategies among mergers and acquisitions
• Evaluating the importance of financial transparency and its impact on investor relations and trust
• Investigating the role of financial flexibility in strategic investment decisions during economic downturns
• Investigating how different dividend policies affect shareholder value and the firm’s financial performance

Investment Banking

The list below presents a series of research topics exploring the multifaceted dimensions of investment banking, with a particular focus on its evolution following the 2008 financial crisis.

• Analysing the evolution and impact of regulatory frameworks in investment banking post-2008 financial crisis
• Investigating the challenges and opportunities associated with cross-border M&As facilitated by investment banks.
• Evaluating the role of investment banks in facilitating mergers and acquisitions in emerging markets
• Analysing the transformation brought about by digital technologies in the delivery of investment banking services and its effects on efficiency and client satisfaction.
• Evaluating the role of investment banks in promoting sustainable finance and the integration of Environmental, Social, and Governance (ESG) criteria in investment decisions.
• Assessing the impact of technology on the efficiency and effectiveness of investment banking services
• Examining the effectiveness of investment banks in pricing and marketing IPOs, and the subsequent performance of these IPOs in the stock market.
• A comparative analysis of different risk management strategies employed by investment banks
• Examining the relationship between investment banking fees and corporate performance
• A comparative analysis of competitive strategies employed by leading investment banks and their impact on market share and profitability

Private Equity & Venture Capital (VC)

These research topic ideas are centred on venture capital and private equity investments, with a focus on their impact on technological startups, emerging technologies, and broader economic ecosystems.

• Investigating the determinants of successful venture capital investments in tech startups
• Analysing the trends and outcomes of venture capital funding in emerging technologies such as artificial intelligence, blockchain, or clean energy
• Assessing the performance and return on investment of different exit strategies employed by venture capital firms
• Assessing the impact of private equity investments on the financial performance of SMEs
• Analysing the role of venture capital in fostering innovation and entrepreneurship
• Evaluating the exit strategies of private equity firms: A comparative analysis
• Exploring the ethical considerations in private equity and venture capital financing
• Investigating how private equity ownership influences operational efficiency and overall business performance
• Evaluating the effectiveness of corporate governance structures in companies backed by private equity investments
• Examining how the regulatory environment in different regions affects the operations, investments and performance of private equity and venture capital firms

Asset Management

This list includes a range of research topic ideas focused on asset management, probing into the effectiveness of various strategies, the integration of technology, and the alignment with ethical principles among other key dimensions.

• Analysing the effectiveness of different asset allocation strategies in diverse economic environments
• Analysing the methodologies and effectiveness of performance attribution in asset management firms
• Assessing the impact of environmental, social, and governance (ESG) criteria on fund performance
• Examining the role of robo-advisors in modern asset management
• Evaluating how advancements in technology are reshaping portfolio management strategies within asset management firms
• Evaluating the performance persistence of mutual funds and hedge funds
• Investigating the long-term performance of portfolios managed with ethical or socially responsible investing principles
• Investigating the behavioural biases in individual and institutional investment decisions
• Examining the asset allocation strategies employed by pension funds and their impact on long-term fund performance
• Assessing the operational efficiency of asset management firms and its correlation with fund performance

Hedge Funds

Here we explore research topics related to hedge fund operations and strategies, including their implications on corporate governance, financial market stability, and regulatory compliance among other critical facets.

• Assessing the impact of hedge fund activism on corporate governance and financial performance
• Analysing the effectiveness and implications of market-neutral strategies employed by hedge funds
• Investigating how different fee structures impact the performance and investor attraction to hedge funds
• Evaluating the contribution of hedge funds to financial market liquidity and the implications for market stability
• Analysing the risk-return profile of hedge fund strategies during financial crises
• Evaluating the influence of regulatory changes on hedge fund operations and performance
• Examining the level of transparency and disclosure practices in the hedge fund industry and its impact on investor trust and regulatory compliance
• Assessing the contribution of hedge funds to systemic risk in financial markets, and the effectiveness of regulatory measures in mitigating such risks
• Examining the role of hedge funds in financial market stability
• Investigating the determinants of hedge fund success: A comparative analysis

Financial Planning and Advisory

This list explores various research topic ideas related to financial planning, focusing on the effects of financial literacy, the adoption of digital tools, taxation policies, and the role of financial advisors.

• Evaluating the impact of financial literacy on individual financial planning effectiveness
• Analysing how different taxation policies influence financial planning strategies among individuals and businesses
• Evaluating the effectiveness and user adoption of digital tools in modern financial planning practices
• Investigating the adequacy of long-term financial planning strategies in ensuring retirement security
• Assessing the role of financial education in shaping financial planning behaviour among different demographic groups
• Examining the impact of psychological biases on financial planning and decision-making, and strategies to mitigate these biases
• Assessing the behavioural factors influencing financial planning decisions
• Examining the role of financial advisors in managing retirement savings
• A comparative analysis of traditional versus robo-advisory in financial planning
• Investigating the ethics of financial advisory practices

The following list delves into research topics within the insurance sector, touching on the technological transformations, regulatory shifts, and evolving consumer behaviours among other pivotal aspects.

• Analysing the impact of technology adoption on insurance pricing and risk management
• Analysing the influence of Insurtech innovations on the competitive dynamics and consumer choices in insurance markets
• Investigating the factors affecting consumer behaviour in insurance product selection and the role of digital channels in influencing decisions
• Assessing the effect of regulatory changes on insurance product offerings
• Examining the determinants of insurance penetration in emerging markets
• Evaluating the operational efficiency of claims management processes in insurance companies and its impact on customer satisfaction
• Examining the evolution and effectiveness of risk assessment models used in insurance underwriting and their impact on pricing and coverage
• Evaluating the role of insurance in financial stability and economic development
• Investigating the impact of climate change on insurance models and products
• Exploring the challenges and opportunities in underwriting cyber insurance in the face of evolving cyber threats and regulations

Quantitative Finance

These topic ideas span the development of asset pricing models, evaluation of machine learning algorithms, and the exploration of ethical implications among other pivotal areas.

• Developing and testing new quantitative models for asset pricing
• Analysing the effectiveness and limitations of machine learning algorithms in predicting financial market movements
• Assessing the effectiveness of various risk management techniques in quantitative finance
• Evaluating the advancements in portfolio optimisation techniques and their impact on risk-adjusted returns
• Evaluating the impact of high-frequency trading on market efficiency and stability
• Investigating the influence of algorithmic trading strategies on market efficiency and liquidity
• Examining the risk parity approach in asset allocation and its effectiveness in different market conditions
• Examining the application of machine learning and artificial intelligence in quantitative financial analysis
• Investigating the ethical implications of quantitative financial innovations
• Assessing the profitability and market impact of statistical arbitrage strategies considering different market microstructures

Treasury Management

The following topic ideas explore treasury management, focusing on modernisation through technological advancements, the impact on firm liquidity, and the intertwined relationship with corporate governance among other crucial areas.

• Analysing the impact of treasury management practices on firm liquidity and profitability
• Analysing the role of automation in enhancing operational efficiency and strategic decision-making in treasury management
• Evaluating the effectiveness of various cash management strategies in multinational corporations
• Investigating the potential of blockchain technology in streamlining treasury operations and enhancing transparency
• Examining the role of treasury management in mitigating financial risks
• Evaluating the accuracy and effectiveness of various cash flow forecasting techniques employed in treasury management
• Assessing the impact of technological advancements on treasury management operations
• Examining the effectiveness of different foreign exchange risk management strategies employed by treasury managers in multinational corporations
• Assessing the impact of regulatory compliance requirements on the operational and strategic aspects of treasury management
• Investigating the relationship between treasury management and corporate governance

Financial Technology (FinTech)

The following research topic ideas explore the transformative potential of blockchain, the rise of open banking, and the burgeoning landscape of peer-to-peer lending among other focal areas.

• Evaluating the impact of blockchain technology on financial services
• Investigating the implications of open banking on consumer data privacy and financial services competition
• Assessing the role of FinTech in financial inclusion in emerging markets
• Analysing the role of peer-to-peer lending platforms in promoting financial inclusion and their impact on traditional banking systems
• Examining the cybersecurity challenges faced by FinTech firms and the regulatory measures to ensure data protection and financial stability
• Examining the regulatory challenges and opportunities in the FinTech ecosystem
• Assessing the impact of artificial intelligence on the delivery of financial services, customer experience, and operational efficiency within FinTech firms
• Analysing the adoption and impact of cryptocurrencies on traditional financial systems
• Investigating the determinants of success for FinTech startups

Commercial Banking

These topic ideas span commercial banking, encompassing digital transformation, support for small and medium-sized enterprises (SMEs), and the evolving regulatory and competitive landscape among other key themes.

• Assessing the impact of digital transformation on commercial banking services and competitiveness
• Analysing the impact of digital transformation on customer experience and operational efficiency in commercial banking
• Evaluating the role of commercial banks in supporting small and medium-sized enterprises (SMEs)
• Investigating the effectiveness of credit risk management practices and their impact on bank profitability and financial stability
• Examining the relationship between commercial banking practices and financial stability
• Evaluating the implications of open banking frameworks on the competitive landscape and service innovation in commercial banking
• Assessing how regulatory changes affect lending practices and risk appetite of commercial banks
• Examining how commercial banks are adapting their strategies in response to competition from FinTech firms and changing consumer preferences
• Analysing the impact of regulatory compliance on commercial banking operations
• Investigating the determinants of customer satisfaction and loyalty in commercial banking

International Finance

The folowing research topic ideas are centred around international finance and global economic dynamics, delving into aspects like exchange rate fluctuations, international financial regulations, and the role of international financial institutions among other pivotal areas.

• Analysing the determinants of exchange rate fluctuations and their impact on international trade
• Analysing the influence of global trade agreements on international financial flows and foreign direct investments
• Evaluating the effectiveness of international portfolio diversification strategies in mitigating risks and enhancing returns
• Evaluating the role of international financial institutions in global financial stability
• Investigating the role and implications of offshore financial centres on international financial stability and regulatory harmonisation
• Examining the impact of global financial crises on emerging market economies
• Examining the challenges and regulatory frameworks associated with cross-border banking operations
• Assessing the effectiveness of international financial regulations
• Investigating the challenges and opportunities of cross-border mergers and acquisitions

Choosing A Research Topic

These finance-related research topic ideas are starting points to guide your thinking. They are intentionally very broad and open-ended. By engaging with the currently literature in your field of interest, you’ll be able to narrow down your focus to a specific research gap .

When choosing a topic , you’ll need to take into account its originality, relevance, feasibility, and the resources you have at your disposal. Make sure to align your interest and expertise in the subject with your university program’s specific requirements. Always consult your academic advisor to ensure that your chosen topic not only meets the academic criteria but also provides a valuable contribution to the field. 

If you need a helping hand, feel free to check out our private coaching service here.

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Top 7 Financial Plan Templates with Examples and Samples

Prachi Soni

A financial plan is indispensable for both individuals and corporations. A well-crafted financial plan serves as a road map for achieving financial goals, managing income and expenses, and making sound investment, savings, and budgeting decisions.

Creating a financial plan from scratch, however, is a scary task. This is when financial plan templates come in handy. 

As the starting point for a prosperous financial path, this article will examine the top seven financial plan templates, examples, and samples.

Each of the templates is 100% customizable and editable. The content-ready nature provides you with a starting point and a structure, the editability feature ensures the presentation can be tailored to unique audiences. 

Seven Comprehensive Financial Plan Templates to Meet Objectives

Discover the key to financial success with our carefully curated selection of top seven financial plan templates, with real-life examples and samples. From budgeting and saving strategies to investment plans and retirement goals, each template offers a comprehensive framework tailored to specific financial objectives.

Template 1: Financial Planning PowerPoint Presentation Slides

A Financial Planning PowerPoint Presentation Slides Template helps presenters create an engaging and visually compelling presentation on budgeting, financial strategies, retirement planning, risk management, and more. By using this slide in your presentations on topics related to financial management, you will be able to save time and reduce required effort. Use this presentation template to showcase your expertise in 12 major segments of finance, including time value of money, inventory management, financial risk management and KPIs and dashboards that depict whether your financial plan worked or not .  Master financial statements like those on income, cash flow and undertake a trend analysis as well. Even ratio analysis is covered. Take your financial planning presentations to the next level! Download this presentation template today!

Download Now!

Template 2: Financial Planning PowerPoint Template Bundles

Pitch yourself using this PPT slide to engage buyer personas and increase brand awareness. Due to the excellent graphics and content, these Financial Planning PowerPoint Template Bundles are perfect for interacting with your audience. This helps you present your financial planning and related topics effectively. Our ready-to-use slides are helpful for large and small companies. With these slides, you can easily explain your actual and budgeted expenses and income. Download it right away without any more delay.  

Download Now

Template 3: Financial Planning Process Trusting Relationship Finance Information Analysis

This template provides a comprehensive framework for presenting fundamental concepts and steps involved in financial planning. It includes visually appealing slides covering goal setting, data collection, risk assessment, investment analysis, review & reports, and monitoring progress. Moreover, this template emphasizes trusting relationships with clients or stakeholders. Download now and become a standout presenter in the world of finance!

Template 4: Evaluating Company Overall Health with Financial Planning and Analysis PowerPoint 

This PowerPoint template will boost your financial analysis presentations. This extensive deck covers many crucial financial planning and analysis topics. Introduce financial planning and your financial planning and analysis team. This template lets you demonstrate your expertise in assessing a company's financial health and providing insights for informed decision-making. Download now to enhance financial planning and analysis presentations.

Template 5: Financial Planning and Analysis Guide for Small and Large Businesses PowerPoint  Presentation Slides

Chief financial officers (CFOs) will glean and provide pertinent business insights to their CEOs and other stakeholders for informed decision-making, where the role of money is significantly important. This is where our financial planning and analysis presentation comes into play. It will help businesses track financial health of their organizations and provide reliable guidance to business executives. The slides within the template are designed to be informative, visually appealing, and easy to understand . Download our expertly-crafted template and lead your company to more excellent financial health and success!

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Template 6: Client-Centric Financial Planning Process PowerPoint Presentation Slides

Professionally designed to illustrate the client-centric financial planning process, the "Client-Centric Financial Planning Process PowerPoint Presentation Slides" are available for your next presentation. The purpose and benefits of financial planning are outlined in our PowerPoint presentations, which may be used to brief personnel. Professionals may wow clients with their ability to assess their needs, coordinate their efforts, and deliver customized, bespoke financial solutions using these slides in their presentations. Download our PowerPoint Presentation today to impress your audience!

Template 7: Financial Planning in Healthcare PPT Presentation Slides

Use this slide to implement best practices and establish monitoring criteria. Use our hospital budget planning PPT Templates to showcase latest financial trends in the healthcare sector, including value-based payments, data analytics, and upgraded financial leadership models. Compare current healthcare costs to future projections. Drive economic efficiency and stay ahead in the ever-evolving healthcare landscape. Download now and revolutionize your healthcare financial planning presentations.

TAKE CONTROL OF YOUR FINANCIAL FUTURE

This blog post reviewed top seven financial plan templates with examples. It improves financial planning for individuals and businesses. These templates can accommodate many needs and interests with features like thorough financial analysis and client-focused methods.

Remember that you need a sound financial plan to meet your financial goals, lower risk, and secure your future. It aids decision-making, adaptability, and financial success.

Choose the most effective option, make it your own so you can achieve your goals, and make the most of your financial planning procedure.

Take control of your financial future today! Discover the essential steps of personal financial planning and unlock the key to financial security. Download our comprehensive guide on How to Do Personal Financial Planning to Secure Your Future .

FAQs on Financial Plan Templates

What is a financial plan example.

A financial plan example is a sample or template demonstrating how a comprehensive financial plan is structured and organized. It includes components and sections that covers varied aspects of personal or business finances.

What are the seven categories of a financial plan?

A comprehensive financial plan covers many critical areas of a person’s or organization’s financial goals and plans. Seven financial plan types are:

• Cash Flow Management : A stable financial situation is maintained by making a budget, keeping track of income and spending, and managing cash flow.
• Includes insurance , money for emergencies, and planning to manage risks, if something goes wrong. 
• Investment planning is the process of deciding how to make money through investments based on goals, risk tolerance, and time frame.
• Planning for retirement : Retirement planning is calculating how much money you’ll need to retire comfortably, planning out how you'll spend your time in retirement, and sticking to that plan.
• Tax Planning : Tax deductions, tax credits, and tax structures that are easy to understand can help lower your tax bill.
• Estate planning includes using wills, trusts, and powers of attorney to give away assets after death and keep taxes as low as possible.
• Financial Goals and Objectives : In this area, you can set financial goals like buying a home, paying for school, or starting a business and plan to reach them.

What are the five components of a financial plan?

A financial plan usually comprises a few essential parts that work together to make a complete plan for reaching financial goals. These are: 

• Financial Goals : Clear financial goals give the plan direction and a reason for being. Some goals are short-term, like paying off debt, and some are long-term, like saving for retirement or a child's college. 
• Budgeting and Cash Flow Management : Making a budget help keep track of income and spending, which lets people or groups use their resources in the best way possible. By looking at cash flow, you can see where you can save money, pay down debt, and build an emergency fund.
• Risk management : This part concerns keeping yourself safe from possible threats and uncertainties. It involves figuring out what kind of insurance you need (e.g., life, health, property), checking what you already have, and thinking about ways to reduce financial risks, like emergency funds and backup plans.
• Planning for investments means coming up with a plan to make money grow over time. This part looks at risk tolerance, time frame, and financial goals to determine the right asset allocation and investment tools (like stocks, bonds, and mutual funds). 
• Planning for retirement : Planning for retirement ensures you have enough money when you stop working. It involves figuring out how much money you will need in retirement, how much you can save, how much you can contribute, and choosing retirement accounts like 401(k)s and IRAs.

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As a financial planner, I give my clients 4 tips to make their money last a lifetime

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• I'm a financial planner, and I remind clients to look at a long timespan and plan for the worst.
• There's no easy answer to earning more money, but it's important to not ignore that factor.
• I encourage my clients to focus less on frugality and more on how they'll invest in the future.

As a certified financial planner , my goal is to help self-made professionals build wealth that they can enjoy throughout their lives. To do that, we have to make sure their money will last throughout their lifetimes.

But we also need to make sure that clients actually have opportunities to use their money now  while they're young, healthy, and able to fully experience life.

Here's the process we use to build long-term financial plans that work, including what your investment strategy should consider and why living frugally is a poor strategy for getting rich.

1. Plan for change

Your goals for retirement planning will probably evolve over time. The person you are today will not be the same person who retires in 10, 20, or 30 years.

A long-term financial plan that works accounts for inevitable shifts in goals, values, priorities, and circumstances. Although you might not know exactly what will change, you can still plan for an evolving life.

First, save more than you think you need to when you can. If you find you have excess cash flow, don't default to spending it or upgrading your lifestyle. Direct that money to investments instead so you can grow wealth.

Avoid unrealistic assumptions about future income and expenses. For my own planning, I assume a lower-than-expected growth in income and a higher-than-expected run rate for my cost of living.

When making decisions, opt for choices that allow you to walk away at a low cost. This makes it possible to change or adjust course as needed. Be cautious about decisions that demand fixed commitments (like buying a house) that are difficult to reverse.

2. Look for ways to earn more

Personally, I've shifted from "retire as soon as possible" to a more balanced approach to my financial goals.

I save less money now because I want to use some of my income for important experiences throughout life. I don't want to save everything for use on a distant (and unreliable!) "someday" in the future.

My financial plan can accommodate this choice for two main reasons:

First, I saved aggressively when I could for almost a decade. I've saved at least 30% to 40% of my income . The fact I did so in the past gives me increased flexibility now.

I also put a lot of time and energy into earning more money through growing my business.

If you want to grow wealth, increasing your income will fast-track your efforts. Too many people who want to throw out money tips ignore this reality.

I understand why no one wants to talk about it. Earning more is not easy to do, and there's no one piece of prescriptive advice to give that will help everyone.

But we cannot ignore the importance of making more money if our goal is to create more wealth. There are many avenues that can get you to a higher income, so you don't need one right answer. You need to select and stick with a strategy that makes sense for you.

3. Remember, frugality will only get you so far

No matter what you want to do, you'll need money to afford your chosen lifestyle in the future. And you won't be able to work to earn an income forever. By choice or by circumstance, you will eventually need another way to pay for your needs other than your own work.

This means we must recognize the necessity of saving money and investing . There's no disputing that. The question is how .

Living frugally to get wealthy is possible; it's a simple fact that the lower your expenses are, the more you can save.

But it's an inefficient path to building wealth. There are only so many costs you can cut. And only saving money misses out on opportunities to create assets that increase in value over time.

4. Develop an investment strategy

If you want to grow wealth without pinching pennies, you have to invest — and you have to do that wisely.

A sound investment strategy needs to consider:

• What investment vehicles to use
• The right asset allocation based on your goals and your time horizons
• The expenses associated with your chosen investments and how that may impact your returns
• How to leverage diversification across your portfolio as well as across the specific  brokerage accounts  or assets you invest into
• The tax implications of your choices
• Mistakes to avoid, including speculating, market timing, and taking on too much (or the wrong type) of risk

That just scratches the surface of comprehensive investment management here. But in general, if you want to build an investment strategy that will help you grow wealth, you want to look for:

• Long-term time horizons : The longer your money can be invested, the better your odds of a successful outcome where you see growth of your assets.
• Risk-adjusted strategies : You want to take on enough risk to see a return, but not more than you can actually afford to realize (or more than you need to meet your goals).
• Globally diversified portfolios : Remember that there is a literal world of financial markets out there. Throwing your money into one to three index funds that are all US large-cap stocks or US bonds is not a good example of true diversification.

One final key to keep in mind: You're better off sticking with a decent strategy that works over time than constantly hopping from one thing to another in search of the best strategy ever. Consistency is an underrated element on the road to building wealth.

Watch: 6 simple investing tips for beginners

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Biases around house-rich cash-poor homeowners are impacting financial planning for retirement

Younger Canadians can’t get into the housing market, and older Canadians don’t know how to get out. And the emotionally charged predicament of house-rich, cash-poor homeowners near or in retirement presents a changing reality for traditional financial advice.

But new research suggests that financial advisers can exhibit behavioural biases that could lead to sub-optimal advice when factoring in home equity release schemes, or HERS, for retirement planning.

“This is part of a larger research project on leveraging home equity to fund retirement income,” said Dr. Vishaal Baulkaran, associate professor of finance at the University of Lethbridge and one of the authors of the paper published in the Journal of Behavioral Finance earlier this year.

“An aging Canadian population, the mounting pressure on pension systems, the rise of homeownership and the growth in house prices presented a unique opportunity to use home equity to generate retirement income. Or, at the very least, make up any potential shortfall . ”

There is a duality to homeownership, in which it represents both a home and an investment. Over time, the incredible returns in home prices have pulled more people toward the investment mindset. But a byproduct of high home prices and dwindling affordability is that the home-as-an-investment ideology has supplanted traditional investments into stocks and bonds.

Perhaps this explosion in home equity justified the cognitive dissonance of not saving for retirement. But as retirement approaches, all of a sudden, the home is a home again, not an investment. And seniors don’t want to leave.

More than 90 per cent of Canadians want to “age in place” in their homes. But a Deloitte report published last year, titled “ Running out of time ,” suggests that “55% of near-retiree households will have to make lifestyle compromises to avoid outliving their savings.”

This is the country’s wake-up call that we need to make sure financial advice for this growing demographic is serving their interests. Because not only is it an emotionally charged decision for households, but there is the added layer of advice providers injecting sub-optimal advice to the mix.

“Individuals, as well as financial planners, are subjected to cognitive biases. Financial planners can help mitigate these biases when advising clients on retirement planning or investing with education and training,” Dr. Baulkaran said. “However, given that we all suffer from cognitive biases, financial planners should be aware of their biases when providing financial advice.”

While Dr. Baulkaran’s research looked specifically at financial planners in Canada, whose training now includes the study of financial decision making and behavioural biases, it’s not a leap to suggest that non-CFP financial advisers and salespeople with less rigorous training might fare worse.

There were seven different home equity release schemes studied in the broader research :

1. Reverse mortgages

2. Home Equity Lines of Credit (HELOCs)

3. Second mortgages

4. Refinancing

5. Selling to downsize into a smaller owned home

6. Selling to move into a rental home

7. Selling to lease-back the same home

The focus in the paper was to see if financial planners displayed common behavioural biases that affected the recommendations they gave to clients with respect to retirement funding strategies, including the interplay between tapping home equity versus selling investments.

It was found that financial planners exhibited different behavioural biases, and that these were associated with differing levels of comfort and willingness in providing advice about utilizing home equity. For example, planners with an aversion to losses are more comfortable recommending the sale of a home in order to downsize and free up equity for retirement income.

Planners exhibiting a mental accounting bias were less comfortable giving advice about using home equity to fund retirement. These planners may see home equity as separate from retirement planning assets, at least to a greater degree than their peers.

(Mental accounting is the tendency to treat money differently depending on how we mentally categorize it. For example, we may spend bonus money more frivolously than our regular salary even though one dollar of bonus is worth the same as one dollar of salary.)

Dr. Baulkaran suggests that by understanding the biases that exist, the industry can work toward more effective advisory practices through training and education.

But another consideration might be a review of how compensation models or sales quotas affect the incentives of salespeople to lean toward different retirement funding strategies.

For example, do salespeople with quotas on investment assets steer their clients to home equity release schemes more than non-quota advisers? That would preserve the fees or commissions collected on investment portfolios. Good for the firm, but what about the client?

As the role of home equity in retirement planning continues to grow, it is essential we scrutinize not only advice provided, but the environment in which that advice may be encumbered by compensation considerations to ensure that the evolving Canadian retirees’ challenges are being met.

Preet Banerjee is a consultant to the wealth management industry with a focus on commercial applications of behavioural finance research.

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Should You Invest in the Fidelity MSCI Financials Index ETF (FNCL)?

Launched on 10/21/2013, the Fidelity MSCI Financials Index ETF ( FNCL Quick Quote FNCL - Free Report ) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity market.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $1.61 billion, making it one of the largest ETFs attempting to match the performance of the Financials - Broad segment of the equity market. FNCL seeks to match the performance of the MSCI USA IMI Financials Index before fees and expenses.

The MSCI USA IMI Financials Index represents the performance of the financial sector in the U.S. equity market.

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.75%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.

Looking at individual holdings, Jpmorgan Chase + Co Common Stock Usd1.0 ( JPM Quick Quote JPM - Free Report ) accounts for about 8.32% of total assets, followed by Berkshire Hathaway Inc Cl B Common Stock Usd.0033 ( BRK.B Quick Quote BRK.B - Free Report ) and Visa Inc Class A Shares Common Stock Usd.0001 ( V Quick Quote V - Free Report ) .

The top 10 holdings account for about 44.13% of total assets under management.

Performance and Risk

The ETF has gained about 7.68% so far this year and is up about 26.23% in the last one year (as of 04/23/2024). In that past 52-week period, it has traded between $43.27 and $59.40.

The ETF has a beta of 1.10 and standard deviation of 19.99% for the trailing three-year period, making it a medium risk choice in the space. With about 415 holdings, it effectively diversifies company-specific risk.

Alternatives

Fidelity MSCI Financials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FNCL is a sufficient option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Financials ETF ( VFH Quick Quote VFH - Free Report ) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF ( XLF Quick Quote XLF - Free Report ) tracks Financial Select Sector Index. Vanguard Financials ETF has $9.12 billion in assets, Financial Select Sector SPDR ETF has $37.76 billion. VFH has an expense ratio of 0.10% and XLF charges 0.09%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center .

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EY Survey: AI adoption among financial services leaders universal, amid mixed signals of readiness

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One in five are not confident that their organizations are well-positioned to take advantage of the potential benefits AI might bring

Ernst & Young LLP (EY US) today released its 2023 Financial Services GenAI Survey. Nearly all (99%) of the financial services leaders surveyed reported that their organizations were deploying artificial intelligence (AI) in some manner, and all respondents said they are either already using, or planning to use, generative AI (GenAI) specifically within their organization.

Amid these universal adoption plans, just over one in five respondents said they are nervous or skeptical about the potential impact of GenAI on their organization. That same percentage also does not feel confident that their organizations are well-positioned to take advantage of the potential benefits AI might bring. Insurance is ranked highest in the nervous or skeptical category (24%), while banking and capital markets leaders had the lowest levels of skepticism (17%), followed by wealth and asset management (21%).

“While there’s a whole world of possibilities and efficiencies AI can create for financial services in areas ranging from data analysis to customer service optimization, blind optimism and hype around the technology can ultimately have a counterproductive impact on a business,” says  David Kadio-Morokro , EY Americas Financial Services Innovation Leader. “We like to take an ‘innovation intelligence’ approach to putting artificial intelligence to work — planning, education and an agile test and learn strategy for implementation are imperative for those looking to make the most of AI’s potential benefits.”

AI Outlook: Optimism Now and in the Future

The majority of respondents felt positive about AI, with more than half (55%) saying they felt supportive and optimistic about using AI in their organization. The long-term sentiment is even more optimistic, with 77% of executives viewing GenAI as an overall benefit to the financial services industry in the next 5-10 years. Leaders see a particular opportunity in customer and client experience, with 87% stating that they believe AI can bring improvements to this space.

AI Implementation: It’s Time to Get Back to Basics

Taking advantage of, and deploying, GenAI is not without its hurdles. When asked about the challenges financial organizations will face in taking advantage of GenAI, leaders ranked the following as top barriers:

• 40% said lack of proper data infrastructure and 35% lack technology infrastructure
• 36% said lack of clear commitment from leadership
• 33% said unclear governance and ethical framework

“Generative AI holds the potential to revolutionize a broad array of business functions,” says  Sameer Gupta , EY Americas Financial Services Organization Advanced Analytics Leader. “With each new wave of AI and analytic innovation, it becomes increasingly clear how important it is to have a tech stack with a solid foundation. Our role is to support financial services organizations in making sure their legacy data and technologies are unimpeachable before adding AI applications on top of existing systems.”

If organizations truly want to take advantage of AI’s benefits, a major factor in their success will be a better understanding of, and improvements in, their data infrastructure. The survey reflects this, with leaders citing the following as the top three ways AI will benefit the financial services industry:

• 46% said risk reduction from data processing
• 38% said creation of new offerings and hyper-personalized marketing
• 37% said improving data management process and accuracy

Winning the (AI) Talent Battle

“Focusing on the human role of AI implementation is just as important as technology infrastructure,” says EY Americas Financial Services Accounts Managing Partner  Michael Fox . “Our data showed that 44% of leaders cited access to skilled resources as a barrier to AI implementation, but there’s only so many already skilled professionals in existence. Part of the solution is deploying upskilling programs today that can equip your current workforce with the skills they need to help leaders and their business thrive in an increasingly AI-centric world.”

Implementing AI in financial services will undoubtedly change the way sector leaders learn, serve customers, process data and manage risk. Organizations that act now with investments in training, talent and infrastructure development while putting proper governance and controls in place will reap the benefits that AI offers their industry, continue driving the business case for investment and will likely find themselves to be a step ahead of their peers.

To find out more about EY and GenAI in Financial Services, including the recently announced unifying platform that the EY organization has created to help organizations confidently adopt AI, please visit  EY.ai .

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Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

Methodology

Wakefield Research conducted this survey between August 15–28, 2023, among 300 Executive Directors, Managing Directors or higher at financial organizations with $2b+ in revenue. Financial organizations are defined as across the banking and capital markets, insurance, and wealth and asset management industries, with 100 responses collected from each sector.

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What does friendship look like in America?  

Americans place a lot of importance on friendship. In fact, 61% of U.S. adults say having close friends is extremely or very important for people to live a fulfilling life, according to a recent Pew Research Center survey . This is far higher than the shares who say the same about being married (23%), having children (26%) or having a lot of money (24%).

Pew Research Center conducted this analysis to understand Americans’ views of and experiences with friendship. It is based on a survey of 5,057 U.S. adults conducted from July 17-23, 2023. Everyone who took part in this survey is a member of the Center’s American Trends Panel (ATP), an online survey panel that is recruited through national, random sampling of residential addresses. This way nearly all U.S. adults have a chance of selection. The survey is weighted to be representative of the U.S. adult population by gender, race, ethnicity, partisan affiliation, education and other categories.  Read more about the ATP’s methodology .

Here are the  questions used for the analysis , along with responses, and its methodology .

We decided to ask a few more questions to better understand how Americans are experiencing friendship today. Here’s what we found:  

Number of close friends

A narrow majority of adults (53%) say they have between one and four close friends, while a significant share (38%) say they have five or more. Some 8% say they have no close friends.

There’s an age divide in the number of close friends people have. About half of adults 65 and older (49%) say they have five or more close friends, compared with 40% of those 50 to 64, 34% of those 30 to 49 and 32% of those younger than 30. In turn, adults under 50 are more likely than their older counterparts to say they have between one and four close friends.

There are only modest differences in the number of close friendships men and women have. Half of men and 55% of women say they have between one and four close friends. And 40% of men and 36% of women say they have five or more close friends.

Gender of friends

Most adults (66%) say all or most of their close friends are the same gender as them. Women are more likely to say this than men (71% vs. 61%).

Among adults ages 50 and older, 74% of women – compared with 59% of men – say all or most of their close friends are the same gender as them. Among adults younger than 50, the difference is much smaller: 67% of women in this age group say this, as do 63% of men.

Race and ethnicity of friends

A majority of adults (63%) say all or most of their close friends are the same race or ethnicity as them – though this varies across racial and ethnic groups.

White adults (70%) are more likely than Black (62%), Hispanic (47%) and Asian adults (52%) to say this.

This also differs by age. Adults 65 and older are the most likely (70%) to say all or most of their close friends share their race or ethnicity, compared with 53% of adults under 30 – the lowest share among any age group.

Satisfaction with friendships

The majority of Americans with at least one close friend (72%) say they are either completely or very satisfied with the quality of their friendships. Those 50 and older are more likely than their younger counterparts to be highly satisfied with their friendships (77% vs. 67%).

The survey also finds that having more friends is linked to being more satisfied with those friendships. Some 81% of those with five or more close friends say they are completely or very satisfied with their friendships. By comparison, 65% of those with one to four close friends say the same.

The survey didn’t ask adults who reported having no close friends about their level of satisfaction with their friendships.

What do friends talk about?

Of the conversation topics asked about, the most common are work and family life. Among those with at least one close friend, 58% say work comes up in conversation extremely often or often, while 57% say family comes up this often. About half say the same about current events (48%).

There are differences by gender and age in the subjects that Americans discuss with their close friends:

Differences by gender

Women are much more likely than men to say they talk to their close friends about their family extremely often or often (67% vs. 47%).

Women also report talking about their physical health (41% vs. 31%) and mental health (31% vs. 15%) more often than men do with close friends. The gender gap on mental health is particularly wide among adults younger than 50: 43% of women in this age group, compared with 20% of men, say they often discuss this topic with close friends.

By smaller but still significant margins, women are also more likely than men to talk often about their work (61% vs. 54%) and pop culture (37% vs. 32%) with their close friends.

Men, in turn, are more likely than women to say they talk with their close friends about sports (37% vs. 13%) and current events (53% vs. 44%).

Differences by age

Those ages 65 and older (45%) are more likely than younger Americans to say they often talk with their close friends about their physical health.

There are two topics where young adults – those under 30 – stand out from other age groups.

About half of these young adults (52%) say they often talk with their friends about pop culture. This compares with about a third or fewer among older age groups. And young adults are more likely to say they often talk about their mental health with close friends: 37% say this, compared with 29% of those 30 to 49 and 14% of those 50 and older.

Note: Here are the  questions used for the analysis , along with responses, and its methodology .

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Few East Asian adults believe women have an obligation to society to have children

Among parents with young adult children, some dads feel less connected to their kids than moms do, how teens and parents approach screen time, most east asian adults say men and women should share financial and caregiving duties, among young adults without children, men are more likely than women to say they want to be parents someday, most popular.

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