Nicholas and Marita Delgado, from Rochester, Minnesota, are the proud new parents of twin daughters. This was quite a shock to them and $2-$year old Jarred. They were not prepared for twins and this has muddled their financial plans as well as most everything elsel They had planned to pay for education costs, but now they are unsure how to prepare for having three children in college at the same time. They love their family, and truly believe that money isn't everything, but their dream to retire early and travel seems to be fading with every new expense. They need help with "Step $5$: Review Your Progress, Reevaluate, and Revise Your Plan". Marita has told Nicholas that she wants to attend a personal finance class at the community center, but Nicholas thinks they should seek assistance from a financial planner. As Nicholas points out, although expenses are rising, they both have good jobs with the potential for rapid advancement and salary increases.

a$.$ Explain to Nicholas and Marita why personal financial planning is crucial to their future. Why are Principles $1$ and $2$ important if they choose to seek professional advice? How might the behavioral finance biases of mental accounting and sunk' crists influence their response to the professional's advice?

b$.$ Using the information in the table $,$ estimate the cost of raising Jarred and the twins from birth to age $18$ if the Delgados' current annual income is approximately $$95,000$ and both parents plan to continue working full$-$time.

c$.$ Explain how understanding and applying Principles $3$ and $8$ will be critical to funding the children's education.

d$.$ Setting financial goals involves specifically defining goals, determining its future cost, and pinpointing the future time when the money will be needed. Write a specific and realistic goal for funding the children's education.

e$.$ In addition to funding the children's education, name two other short$-,$ intermediate$-,$ and long$-$term goals the Delgados should consider as they revise their financial plan.

a$.$ The Delgados are in the stage of the financial life cycle. This stage is the foundation for the efforts that continue during the latter two stages. It is crucial to have a sound financial plan, based on $],$ to guide them. The longer financial goals are postponed, the more impossible they may seem $-$ another reason for continued $.$ Establishing a financial plan is the first step toward

$($Select from the drop$-$down menus.$)$

Building personal financial knowledge will enable the Delgados to: $($Select all that apply.$)$

A$.$ avoid financial professionals more concerned about their interests than the Delgados' interests.

B$.$ more effectively use their knowledge to respond to changes in the financial environment $($e$.$g$.,$ changes in economic conditions or interest rates$).$

C$.$ fully appreciate the need for and the benefits to be gained from financial planning.

D$.$ start their own professional financial advice service.

Financial knowledge may also help the Delgados avoid the effect of throwing good money after bad. Professionals might suggest replacing some of their financial products, such as insurance policies, or perhaps not continuing to save money in a earning savings account but investing for a return. Understanding more about financial planning principles and products may help the Delgados recognize the of this advice. The same could be true with mental accounting, as the Delgados may need to their views on savings for