Chapter 1: The Sampsons-A Continuing Case Dave and Sharon Sampson are 30 years old and have two children, who are five and six years old. Since marrying seven years ago, the Sampsons have relied on Dave's salary, which is currently $54 000 per year. They have not been able to save any money, as Dave's income is just enough to cover their mortgage loan payment and their other expenses. Dave and Sharon feel they need to take control of their finances. Now that both children are in school, they have decided that Sharon will look into getting a part- time job. She was just hired for a part-time position at a local department store at a salary of $12 000 per year. Dave and Sharon are excited by the prospect of having additional income-they now feel they have the leeway to start working toward their financial goals. The Sampsons own a home valued at about $250 000, and their mortgage is $150 000. They have a credit card balance of $2000. Although they own two cars and do not have any car loans, Sharon's car is old and will need to be replaced soon. Sharon would really like to purchase a new car within the next year; she hopes to save $500 each month until she has accumulated savings of $5000 to use for a down payment The Sampsons are also concerned about how they will pay for their children's post- secondary education. Sharon plans to save an additional $300 each month that will be set aside for this purpose. The Sampsons also know they need to save for their retirement over time. Yet, they do not have a plan right now to achieve that goal because they are focused on saving for a new car and their children's education. If the Sampsons were to start saving for retirement, they would probably consult a financial planner. The Sampsons have decided to develop a financial plan. They realize that by formally identifying their main goals, they will be able to implement and monitor their plan over time. At the end of every chapter, you can help the Sampsons develop their financial plan using the key concepts presented in the chapter. Case Questions 1. Help the Sampsons summarize their current financial position, their goals, and their plans for achieving their goals by filling out the following templates. Amount CURRENT FINANCIAL POSITION Major Assets Savings (High, Medium, or Low) Money Owed Salary Goal 1: Purchase a New Car for Sharon This How to Achieve the Goal How to Implement the Plan Value of investment in 12 years Goal 2: Pay for the Children's Post-Secondary Education in 12-17 Years from Now How to Achieve the Goal How to Implement the Plan Value of investment in 12 years Goal 3: Set Aside Money for Retirement How to Achieve the Goal How to Implement the Plan Value of investment in 12 years Chapter 1: The Sampsons-A Continuing Case Dave and Sharon Sampson are 30 years old and have two children, who are five and six years old. Since marrying seven years ago, the Sampsons have relied on Dave's salary, which is currently $54 000 per year. They have not been able to save any money, as Dave's income is just enough to cover their mortgage loan payment and their other expenses. Dave and Sharon feel they need to take control of their finances. Now that both children are in school, they have decided that Sharon will look into getting a part- time job. She was just hired for a part-time position at a local department store at a salary of $12 000 per year. Dave and Sharon are excited by the prospect of having additional income-they now feel they have the leeway to start working toward their financial goals. The Sampsons own a home valued at about $250 000, and their mortgage is $150 000. They have a credit card balance of $2000. Although they own two cars and do not have any car loans, Sharon's car is old and will need to be replaced soon. Sharon would really like to purchase a new car within the next year; she hopes to save $500 each month until she has accumulated savings of $5000 to use for a down payment The Sampsons are also concerned about how they will pay for their children's post- secondary education. Sharon plans to save an additional $300 each month that will be set aside for this purpose. The Sampsons also know they need to save for their retirement over time. Yet, they do not have a plan right now to achieve that goal because they are focused on saving for a new car and their children's education. If the Sampsons were to start saving for retirement, they would probably consult a financial planner. The Sampsons have decided to develop a financial plan. They realize that by formally identifying their main goals, they will be able to implement and monitor their plan over time. At the end of every chapter, you can help the Sampsons develop their financial plan using the key concepts presented in the chapter. Case Questions 1. Help the Sampsons summarize their current financial position, their goals, and their plans for achieving their goals by filling out the following templates. Amount CURRENT FINANCIAL POSITION Major Assets Savings (High, Medium, or Low) Money Owed Salary Goal 1: Purchase a New Car for Sharon This How to Achieve the Goal How to Implement the Plan Value of investment in 12 years Goal 2: Pay for the Children's Post-Secondary Education in 12-17 Years from Now How to Achieve the Goal How to Implement the Plan Value of investment in 12 years Goal 3: Set Aside Money for Retirement How to Achieve the Goal How to Implement the Plan Value of investment in 12 years