Tali is graduating in May. She will earn a degree in general business, and she has accepted a

job in Dallas as a sales associate for a mid-size financial technology company. The position

will require some travel. She has an opportunity for advancement, if she exceeds her job.

expectations. She is seeking some financial advice to help her as she begins her new career.

Here's the information she provided.

Salary - $51,700

Checking - $1,875

Saving - $3,750

Benefits

-Health insurance premium is paid for by her employer; she could have deductibles and co-

payments but she doesn't have any major problems or expect to need healthcare.

-Life insurance is paid for by her employer; twice her salary for term insurance.

-Retirement will be funded by a 401(k). If she contributes 5%, her employer will match it.

Housing

-Tali has not yet decided where she will live. She would like to live alone, but she's

discovered that rent, not including electricity, costs $2,900 a month for a one-bedroom unit

that is three blocks from where she will be working in Downtown Dallas. Her family lives in

Ft. Worth (33 miles from Dallas) and will allow her to live there for $875 per month. She

has her bedroom furniture from college and a dining room table. If she lives with her

family, she will have to sell her furniture or store it. Tali's furniture is worth $2,800 total.

Transportation

-She drives a Honda Accord that is now 10 years old and has 215,000 miles on it and gets

28 miles per gallon. Tali's car is valued at $4,800. There are no major problems with it but

she would really like to get a newer car that gets similar gas mileage.

Technology

-Smart Phone- her cell phone is paid for and is on her parent's plan

-Cable- she wants to acquire membership of at least three streaming sites ($16 each) and

needs internet access. Her parents do not have either cable or internet access.

Wardrobe

-Like most college students, she will need to purchase new work attire to adhere to the

company's dress code. Luckily, she can dress business casual, but on some occasions, she

may need to wear a business suit. She doesn't have to buy everything at once but knows

this is going to be something she will have to pay for.

Debt

-School loans - She has $27,500 in loans and must start repaying 6 months after graduation.

Credit cards - Her Visa has a $5,700 limit. She is carrying $3,977 balance on it from her

Spring Break Trip with her friends and is only able to pay the minimum every month right

now. The interest rate is 29.99%.

Roommate's Wedding

-In July, she will be a bridesmaid in her best friend's wedding in South Padre. Thankfully

her dress is paid for. She will need to buy shoes, a manicure, and a pedicure. She will also

have other expenses for travel, etc. for the wedding and she plans to help two other

bridesmaids host a bachelorette party in June. They are planning a trip to Las Vegas and

renting an Airbnb.

Anticipated expenses prior to starting her new position on August 1st

-Pay costs beyond deposit on college apartment. They have pets and the carpet and walls

have lots of marks and stains on them. They are sure they will have to pay when they move

out.

-Has to pay $225 in parking tickets (to the university) before she can receive her diploma.

-Wants to go to take a road trip to Miami with friends after graduation for at least a week.

-Wants to buy a graduation present for her boyfriend who is also graduating.

1) as a financial planner, how would you "break the ice" and establish a relastionship with tail?

2) after reading the case study what questions would you ask tali about her financial situation? and why would you ask her those question?

3) what do you think are the four most significant problems for tali?

4) identify and describe two short-term goals (S.M.A.R.T. goals) for tali?

5) identify and describe two long-term goals (S.M.A.R.T. goals) for tali?

6) what five recommendations or suggestions do you have for tali and why?