Finance project

FinPln 3282 Final Case Study

Directions: You are going to write up a recommendation report as though I were the counselor and you are my assistant. Be sure to include all possible resources Susan would be eligible for – it will be my job to discuss each of these with her to see if it is something she is interested in pursuing.

You must include, at a minimum, five ways she can either increase income and/or or decrease expenses. Be specific and realistic with ways you can increase income and/or decrease expenses. Every recommendation needs to have a dollar amount attached to it, and a screenshot in the appendix to back up the dollar amount.

Your report must have both Susan’s current budget and a revised budget with your recommended changes.

All major issues and goals must be addressed specifically – not in general terms. For example, in looking at her issue of being one month behind on her student loan address exactly why this is a problem and some specific recommendations for fixing that issue. If you recommend a different payment plan you must include a print-out in an appendix.

Be cautious of projecting your values on the client. For example, if the client feels that college funding for her children is important, you should do you best to work that into the budget, even if you feel that students should pay for their own schooling.

Your report must include a one-page executive summary at the beginning. An executive summary is a brief overview of the report which is designed to give a quick preview of its contents. Your goal should be to consolidate the principal points of the entire case study, and not just to give an overview of Susan’s current situation.

The appendix should NOT contain any applications. Summary screenshots are sufficient, with website links within the report itself.

You need a works-cited page will contain a numbered list where you reference websites and books (including Surviving Debt), with notations in the document on the information the reference relates to.

Your written report needs to be at least 5 pages long, not including the works cited page and appendix. Detail is VERY important.

I recommend you break up and format your report as follows:

• Cover page

• Executive summary

• Client information page, including current budget with graphical representation.

• Recommendations to increase income

• Recommendations to decrease expenses

• Major issues addressed one at a time

• Goals addressed one at a time

• Revised budget(s)

• Works cited

• Appendix with printouts

• 
  Due Date: Friday, May 5, 2017 by 11:59pm uploaded to Canvas in PDF format.

• CASE STUDY

• Susan age 36 (DOB: 4/7/80)

• Children:
  Tina DOB: 8/27/10
  Jeffrey DOB: 4/14/15

• Susan is a single mom whose husband, Jack, deserted her after she got pregnant with Jeffrey. She has not seen or heard from him since, and therefore receives no type of child support. Susan recently learned that Jack is still single, living in Moberly, and earns $30,000 per year.

• Susan’s parents, who live close by, help her out a little bit now and then, but they aren’t doing well financially either. She explored the idea of moving in with her parents, but they don’t have enough room. In addition, Susan’s mother is chronically ill, so they cannot take care of the kids for her. She has discussed her major issues with me and has shared her budget. She also has some goals she would like to achieve, which are listed in order of importance below.

• Susan’s monthly budget

• Income1: $1824/month

• Expenses:

• $140 Payroll taxes
  $30 Federal tax withholding2
  $20 Missouri tax withholding
  $125 Medical insurance3
  $183 Tithing4
  $570 Mortgage5
  $120 Utilities (water, gas, & electric)
  $300 Daycare6
  $45 Credit card7
  $184 Student Loan8
  $250 Food9
  $80 Auto insurance10,11
  $75 Gas
  $50 Household and personal care Total expenses: $2172

• Major Issues:

• 2 months behind on credit card; continues to charge things to credit card because she can’t seem to make ends meet

• 1 month behind on student loan

• 2 months behind on mortgage

• Considering bankruptcy to eliminate student loan and credit card debt

• Goals:

1. Have enough money to pay her bills each month

2. Get caught up on all past due bills

3. Establish a starter emergency fund of $1000

4. Go back to school12

5. Start saving for kid’s college13

6. Start saving for retirement14

• Grading Rubric

• Name______________________________________

• Presentation (25)

• 5: Professional Appearance & PDF format
  0: Not in PDF or Not Professional Appearance

• 5: each section clearly laid out
  2: format challenging to follow
  0: format difficult to follow

• 5: Well-written Executive Summary
  5: Works cited page
  5: Appendix with all summary printouts

• Budget (25)

• 10: Both current and revised budgets
  Up to 15 points total: Ways to increase income/decrease expenses with dollar amounts:
  

• _______________________
  _______________________
  _______________________
  _______________________ _______________________
  _______________________
  _______________________
  _______________________

• Major Issues (20)

1. 2 months behind on cc – 5

2. 1 month behind on SL – 5

3. 2 months behind on mortgage – 5

4. Bankruptcy – addressed – 5

• Goals (30)

1. Have enough to pay bills – 5

2. Caught up on past due – 5

3. Emergency Fund $1000 – 5

4. Return to school – 5

5. College – 5

6. Retirement - 5

1 She works at Wal-mart as a cashier on the day shift (38 hours a week @ $12 hour – 38 hours is full-time). She recently received a raise so she will not be eligible for another one in the near future

2 Susan files her taxes under filing status Head of Household

3 Medical insurance is pre-tax and covers Susan and the children

4 10% per month – Susan considers this her most important expense each month. She will not eliminate or reduce this.

5 $82000 and 26 years remaining; 5.25% interest; original balance $87,000. Current appraised value $88,000

6 For Jeffrey – will need to pay this until age 6

7 Balance $2200; $3000 credit limit; 12.6% APR

8 Balance $16,000 Standard payment plan; 6.8% APR. All Direct loans - $10,000 subsidized, $6000 unsubsidized

9 Susan shops mainly at Aldi and buys off-brand food

10 Minimum required coverage through Safeco Insurance

11 Susan drives a paid for 2000 Ford Escort with 92,000 miles on it. She cannot sell her car and just take the bus.

12 Susan wants to become an elementary school teacher. She has a total of 18 credits to finish up. She did all previous credits at Columbia College in Elementary Education.

13 Susan would like to have $10,000 for each child in a college fund by the time they are 18

14 Wal-mart has a 401(k) available – they match 100% of employee’s contributions up to 6% of salary