During the Christmas break of his final year at the University of Texas (UT), Tom Curtis plans to put together his rsum in order to seek full-time employment as a medical technician during the spring semester. To help Tom prepare for the job interview process, his older brother has arranged for him to meet with a friend, Teresa Erdman, who has worked as a medical technician since her graduation from UT two years earlier. Teresa gives him numerous pointers on rsum preparation, the interview process, and possible job opportunities.

After answering Toms many questions, Teresa asks Tom to update her on UT. As they discuss courses, Teresa indicates that of all the electives she took, the personal financial planning course was most useful. Tom says that, although he had considered personal financial planning for his last elective, hes currently leaning toward a beginning golf course. He feels that the course will be fun because some of his friends are taking it. He points out that he doesnt expect to get rich and already knows how to balance his checkbook. Teresa tells him that personal financial planning involves much more than balancing a checkbook, and that the course is highly relevant regardless of income level. She strongly believes that the personal financial planning course will benefit Tom more than beginning golfa course that she also took while at UT.

Critical Thinking Questions

1. Describe to Tom the goals and rewards of the personal financial planning process.
2. Explain to Tom what is meant by the term financial planning and why it is important regardless of income.
3. Describe the financial planning environment to Tom. Explain the role of the consumer and the impact of economic conditions on financial planning.
4. What arguments would you present to convince Tom that the personal financial planning course would benefit him more than beginning golf?