Template for Case Study for Financial Literacy

The attached template will give you a framework for preparing your case study for your assignment. What you as a consumer need to know how to do is apply the financial planning process to making decisions about your own affairs. Even though you are mostly very young people, you still need to plan for your retirement. Only a few dollars put aside now will make a big difference to you and how well you live in your later years.

1. Start out by figuring out where the subject of the case study stands now and where they want to be in the future. You can create your own client narrative or expand on one of the two examples that are provided on the next page. Much of this information will be made up by you.

2. Prepare a goals worksheet, current balance sheet and a statement of cash flow. Also list the assumptions such as future investment return, increases in wages, etc. You should approach the case as if you were a financial planner and the subject is your client.

3. Prioritize the steps that need to be taken to help the subject of the case reach his or her financial goals. Ex. If someone is head over heels in debt, their first step is to get that handled, then they can start saving and investing. As you do your analysis, you will start to compile your recommendations, and develop a timeline for what needs to be done. You will then present your recommendations in a recommendations section.

Write a narrative describing the situation of your case study, or expand on one of the following examples:

You are a financial planner and have to help these people plan smartly with their money.

1. Robert and Carole Ann Adams are a young couple, ages 26 and 22 respectively. He has a BS. In Management and is a lower-level manager at ABG Industries, where he is regarded as an up and comer. His salary is $75,000 per year. She has a bachelors in marketing, and is working on a marketing team for a major manufacture of textiles. Her salary is $60,000 per year. They would like to buy a house and then have a baby sometime in the next 5 years. They have $10,000 in a savings account, and Robert participates in the 401(k) plan at work. Robert likes to collect and restore old automobiles, but finances most of his hobby by selling about half the cars he restores. Storage is sometimes a problem. Below is a Statement of Net Worth and a statement of Cash Flow for the Adams.

Once the baby is born, Carole Ann hopes to take off work for at least 3 years to care for the baby.

How you will plan :

CURRENT SITUATION:

AFTER LOOKING AT THE INFORMATION PRESENTED BY THE CLIENT.. IDENTIFY IF THERE ARE ANY...

-STRENGTH

-WEAKNESSES

-OPPORTUNITIES

-THREATS

Prepare Statement of Cash Flow (Use format in your book.)

INCOME - EXPENSES = SAVINGS

Prepare Statement of Net Worth (Use format in your book.)

BALANCE

ASSETS.	DEBTS

Goals Worksheet

(Examples to throw in some ideas)

-Short Term: for example car,travel,moving

-Medium Term: for ex. grad school,home down pay

-Long Term- for ex. kid's college,retirement

RECOMMENDATIONS

(Remember that you may not be able to meet all goals in the clients timeline. Recommend which goals need to be postponed and why.)

-Income and Expenses:

-Savings and Investment:

-Debt Management:

-Risk Management and Insurance:

-Retirement Planning: