Shelby Johnson has a flair for grooming dogs and cats. She hopes to open her own pet salon when she graduates from college. She is currently completing her sophomore year in business while working at a local pet store. Shelby has been living with a roommate (Melinda) in an apartment near her work in order to reduce her living expenses. However, she continually uses her credit card to make ends meet.

Her personal property consists of a 2005 car ($5,550) that gets great gas mileage, a television set with a DVD player ($400), a digital camera ($50), a laptop computer ($400), clothing ($300), and some furnishings valued at $600 (bed, dresser, lamp, clock, couch) with a total value of $7,300.

Shelbys life situation: Single, Age 21, No dependents, College student

Shelbys financial data: Monthly income $1,750; Living expenses $1,210; Personal property $7,300; Savings $2,000; Student loan $3,000; Credit card debt $2,400.

1. Given her current situation, list various personal financial decisions that Shelby may be considering at this point in her life.

2. Describe what short-term, intermediate and long-term goals Shelby should develop using the Setting Personal Financial Goals sheet located at the back of the text.

3. What types of time value of money calculations would be helpful for Shelby?