This is your second week on the job working as a financial planner. You are about to advise your next client - Raul Avarro, onginally from Mexico, about financial responsibility and growing his financial literacy and net worth. Raul is a 24 year old student who plans on living in Toronto permanently with his 6 year old dog called Scruffy. Scruffy is a boxer and his gums swell a lot but Raul doesn't think it is a big problem at all. Once Raul finishes his degree - a Bachelor of Education, he dreams of getting a job in a Canadian High School. He would like to rent a place, perhaps a studio apartment downtown Toronto and buy a middle range car. He also wants to be able to visit his family in Mexico once or twice a year. As he does. not work, he also does not have any medical insurance for himself. He is due to finish his university degree in July 2022. He has $10 000 in his bank account and a $25 000 student loan. The federal student loan interest rate for undergraduates is 3.73% for the 2021-22 school year. As Raul is an overseas student in Canada, he needs some basic financial advice on how to start his own independent life. His family back home is well-off, however, Raul is very ambitious and wants to be financially independent from his family as soon as he graduates. He is positive he will do well in the future You have noticed that since Raul is still quite new to Canada, he is not aware of many things e.g. he wants to use his credit card to buy a car. He doesn't know how much his loan repayments will be every month but he wants to pay off his student loan debt within 5 years.

Please write down all your ideas, suggestions, advice, etc. Your reply should be more than 4 paragraphs and no more than 2 pages in length. Remember to use a variety of financial concepts discussed and learnt in class. You will be assessed on your ability to apply the concepts learnt in class to real life situations. Please consider your client and his needs as well as his expectations. Your client will need to understand some concepts to be successful i.e. disposable income or net-worth as well as different dimensions of social, emotional and cultural influences that could contribute to his financial success or the lack of thereof. Please address the issue of: buying a car using a credit card and the detrimental effect it could have on your client's financial situation due to the interest charges. What would be his interest changes if he bought a middle range $12 000 car? Having a pet can be a huge expense as well and it can be detrimental to Raul's financial success if he does not prepare for emergencies and if he does not have enough savings. What are Rauls monthly loan payments to pay off his student loan? What is the interest rate? Please analyze the situation and think critically to meet your objective.