While in college, Pam Jenkins worked part-time and was never concerned about long-term financial planning. Rather than creating a budget, she used her checkbook and savings account (which usually had a very low balance) to handle her financial needs.

After completing college, Pam began her career as a sales representative for a clothing manufacturer located in California.

After one year, her assets consist of a 2002 automobile, a television set, some electronic entertainment equipment, and clothing and other personal belongs, with a total value of about $8,200.

Life Situation

Financial Data

Single Age 22 Starting a career No dependents Monthly income $2,600 Living expenses $2,180 Assets $8,200 Liabilities $3,470 Emergency fund

$530

Questions

1. Q1. List various personal financial decisions that Pam might be thinking about at this point in her life.
2. Q2. Realizing the information is limited, discuss possible future events that could impact Pam financially and what additional information is needed before recommending actions?
3. Q3. What are some specific short-term, intermediate, and long-term financial goals that Pam might want to develop?
4. Q4.ListatleastthreefinancialsituationsandthetimevalueofmoneycalculationsthatwouldbehelpfultoPaminplanningormakingdecisions?

Please answer question 2.