personal finance case advtqm

8/12/2019 Personal Finance Case AdvTQM

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LSS 2103 Personal Finance

Case Study Resources


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READ THE CASE CRITERIA!

HIGHLIGHTS:

40% of Course Mark

Due June 1 4 Page written report (Analysis and

Recommendations)

10 minute Power Point Presentation


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Copyright 2014 Pearson Education, Inc. All rights reserved. 1-3

Realize that with all the case studies, you are trying

to develop a financial plan, defined as follows:

Personal financial plan: a plan thatspecifies your financial goals and describes

the spending, financing, and investingplans that are intended to achieve thosegoals.

Suggestion: In your advice to your caseclients, focus on helping them achievefinancial goals!


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HIGHLIGHTS:

Your financial case analysis should

include the following items:

1. A discussion of the strengths and weaknesses

of the individual or family's financial situation.

Suggestion: Discuss their assets, liabilities, and

net worth as shown on the following slide.


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Analyze there assets, liabilities,and net worth

Evaluate your current financial position

Assets: what you own

Liabilities:what you owe

Net worth: the value of what you own minus the valueof what you owe

Suggestion: List Assets, Liabilities, andNet Worth as in the following slide underthe present situation column.


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Analyze the personal balance sheet

Suggestion: You could even analyze the personal

balance sheet that you prepared as in the

following slide:


8/29Copyright 2014 Pearson Education, Inc. All rights reserved. 2-8

Personal Balance Sheet (contd)

Debt level is measured by debt-to-asset ratio

Debt-to-Asset Ratio = Total liabilities/total assets

From personal balance sheet on previous slide

2,000/9,000 = 22.22%

Higher ratio = higher debt relative to assets

Suggestion: If their ratio is too high,develop a strategy to lower it seefinancial calculators later


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HIGHLIGHTS:



2. Correction of any misinformation that theindividual or family has about financial topics

Suggestion: Educate them about things like thehigh cost of credit card debt, and the benefits ofcompounded interest on savings.


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HIGHLIGHTS:



3. Comments about the individual or family's

cash flow.

Suggestion: Prepare a cash flow statement as in

the following slide.


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HIGHLIGHTS:

Your financial case analysis should includethe following items:

4. Comments about emotional issues related to theindividual or family's financial situation

Suggestion: This is an easy one, just point out the issuesrelated to job stress and financial pressures that everyonefaces, and suggest some solutions.


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HIGHLIGHTS:


include the following items:5. Calculations of the savings required to reach financialgoals

Suggestion: Use the savings goal calculator on thefollowing slide .


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Use this calculator to help advise

how your case clients can save for a

future financial goal

Savings Goal Calculator
http://www.bankrate.com/calculators/savings/price-inflation-calculator.aspxhttp://www.bankrate.com/calculators/savings/price-inflation-calculator.aspx


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HIGHLIGHTS:

Your financial case analysis should include

the following items:6. Give 3 to 5 recommended action steps to improve

the individual or family's financial situation

Suggestion: Use the various calculators provided on thefollowing slides.


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Use these calculators to help advisehow your case clients can save extra

money by avoiding impulse

purchases

Lunch Savings Calculator

Benefits of Spending Less Calculator
http://www.bankrate.com/calculators/savings/bring-lunch-savings-calculator.aspxhttps://www.dinkytown.net/java/SpendLess.htmlhttps://www.dinkytown.net/java/SpendLess.htmlhttp://www.bankrate.com/calculators/savings/bring-lunch-savings-calculator.aspx


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how your case clients can save for

college

College Savings Plan Calculator
http://money.msn.com/college-savings/college-savings-plan-calculator.aspxhttp://money.msn.com/college-savings/college-savings-plan-calculator.aspx


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how your case clients can save to

reach a financial goal in the futurefor retirement or other needs.

Cool Million Calculator
https://www.dinkytown.net/java/Millionaire.htmlhttps://www.dinkytown.net/java/Millionaire.html


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Use this calculator to help achieve goal ofpaying off credit card balance in a particularperiod of time

www.federalreserve.gov/creditcardcalculator
http://www.federalreserve.gov/creditcardcalculatorhttp://www.federalreserve.gov/creditcardcalculator


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Use this calculator to estimate the

time it will take to pay off credit

cards utilizing different monthly

payments.

www.consumercredit.com/debt-payoff-calc.htm
http://www.consumercredit.com/debt-payoff-calc.htmhttp://www.consumercredit.com/debt-payoff-calc.htmhttp://www.consumercredit.com/debt-payoff-calc.htmhttp://www.consumercredit.com/debt-payoff-calc.htmhttp://www.consumercredit.com/debt-payoff-calc.htmhttp://www.consumercredit.com/debt-payoff-calc.htm


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Use this calculator to help

compare the cost of leasing versus

purchasing a car.

autos.aol.com/calculators/car-lease-

calculator/
http://www.autos.aol.com/calculators/car-lease-calculator/http://www.autos.aol.com/calculators/car-lease-calculator/http://www.autos.aol.com/calculators/car-lease-calculator/http://www.autos.aol.com/calculators/car-lease-calculator/http://www.autos.aol.com/calculators/car-lease-calculator/http://www.autos.aol.com/calculators/car-lease-calculator/http://www.autos.aol.com/calculators/car-lease-calculator/


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HIGHLIGHTS:

Your financial case analysis should include thefollowing items:

7. Recommend financial products such as bankaccounts, insurance policies, and mutualfunds

Suggestion: Look up definitions for things like Mutual Fundson Investopedia.com, and look at investment sites likeMoodys or Morningstar and suggest specific investments.


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HIGHLIGHTS:


8. Suggest available resources that can assist theindividual or family to improve their finances

Suggestion: Provide a suggested reading list on personalfinance. Google something like NY Times bestseller listof personal finance books.


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HIGHLIGHTS:


9. Give any other information that you feel isuseful and relevant to the case

Suggestion: Try to notice issues in the case that relate toprior concepts we have discussed in class, and look thoseissues up in BBLearn Power Points.


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HIGHLIGHTS:

Your financial case analysis should include thefollowing items:

10. References for source materials used to analysethe case (feel free to use your textbooks, class notes,Web sites, financial publications, and other resourcesto assist in your analysis).

Please provide references in your paper and power pointpresentation.


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BE CREATIVE

Please not that the Case Criteria States theFollowing:

Feel free to add additional assumptions to the

case as long as they are realistic for the situationand described in your report.

In other words, you could say after interviewing

the clients in this case, you discovered thatthey have or are doing _____, and should do

_____.


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BE CREATIVE

For Example:

You could say after interviewing these people,you discovered they spend too much on

Starbucks or McDonalds, and use the calculators

here to show them how much they would save

in a year if they stopped going to fast food

places.


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BE CREATIVE

For Example:

Using these calculators in your case paper andpresentation will help you with giving specific

advice and avoiding too much general advice.

You cant just say your case clients need to earn

more money and spend less money! Give

specific advice with actual numbers.

personal finance case advtqm

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