Basics Of Long Term Planning

From Open Risk Manual


Basics Of Long Term Planning. In the context of the Financial Competence Framework, Basics Of Long Term Planning is a topic in the Planning And Managing Finances subject matter domain.[1]


Mastering the role of Basics Of Long Term Planning in financial literacy context requires the following competences:

Code Competency Description Competency Type
233 Understands the importance of having an eye on the longer-term even when short-term needs are pressing Knowledge
234 Understands that long-term planning may require different types of financial product from those used for emergency savings Knowledge
235 Recognises that the actions needed to achieve longer-term plans may need adjusting over time Knowledge
236 Understands the importance of making plans for the end of life including considering the financial requirements of dependents, making decisions about how outstanding costs, debts and assets should be distributed, and writing a will, where relevant Knowledge
237 Makes financial plans for future positive and negative life events that are likely to have financial consequences Skill
238 Identifies strategies to take action [overcome procrastination] when making longer-term plans Skill
239 Identifies strategies to balance immediate needs and wants with longer-term plans, so to achieve longer-term financial goals Skill
240 Monitors the changing value of investments, assets and liabilities Skill
241 Takes into account predictable fluctuations in income and expenditure when making longer-term plans Skill
242 Takes into account all personal and household assets and liabilities when considering longer-term needs Skill
243 Takes into account the possibility that family or community members will need financial support in the longer-term Skill
244 Puts plans in place to cover current living expenses for dependents and arrange for the distribution of outstanding costs, debts and assets at the end of life, and checks these from time to time Skill
245 Values long-term financial planning as a way of maintaining or increasing financial well-being Attitude
246 Confident to make changes to longer-term financial plans if necessary Attitude
247 Confident to put long term financial plans into action Attitude
248 Motivated to consider the longer-term financial needs of dependents Attitude


  1. European Union/OECD (2022), Financial competence framework for adults in the European Union