personal finance case advtqm
TRANSCRIPT
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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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READ THE CASE CRITERIA!
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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Copyright 2014 Pearson Education, Inc. All rights reserved. 1-5
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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Copyright 2014 Pearson Education, Inc. All rights reserved. 2-6
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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:
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8/12/2019 Personal Finance Case AdvTQM
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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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READ THE CASE CRITERIA!
HIGHLIGHTS:
Your financial case analysis should
include the following items:
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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READ THE CASE CRITERIA!
HIGHLIGHTS:
Your financial case analysis should
include the following items:
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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Copyright 2014 Pearson Education, Inc. All rights reserved. 2-11
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READ THE CASE CRITERIA!
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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READ THE CASE CRITERIA!
HIGHLIGHTS:
Your financial case analysis should
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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READ THE CASE CRITERIA!
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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Use this calculator to help advise
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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Use this calculator to help advise
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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READ THE CASE CRITERIA!
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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READ THE CASE CRITERIA!
HIGHLIGHTS:
Your financial case analysis should includethe following items:
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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READ THE CASE CRITERIA!
HIGHLIGHTS:
Your financial case analysis should includethe following items:
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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READ THE CASE CRITERIA!
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.