Background:Youareafinancialadvisor.Readthecasebelow,andanalyzeyour clientsfinancialdata.Usewhatyouhavelearnedaboutfinancialgoalsetting,needs versuswants,budgeting,debt,creditcards,savingsandinvestingtodevelopa detailed,specificrecommendation.Youwillwritealettertoyourclientexplaining yourrecommendation.Thelettermustbetypedusingthetemplateprovidedand thereisatwopagelimit.Strivetodemonstratethedepthofknowledgeyouhave acquiredinthePersonalFinancialManagementunit.Attachanydocumentation necessarytosupportyourrecommendation.Usespecificdatatoconvinceyour clientthattheyshouldfollowyouradvice.Asaminimum,youmustattachtoyour letteracurrentandaproposedbudget.Youmayfindthefinancialcalculatorsonthe followingwebsitetobehelpfulinyouranalysisandrecommendation: www.practicalmoneyskills.com/calculators Thisassessmentwillbegradedona4pointrubricforContentandCriticaland CreativeThinking.YouwillalsoearnagradeforPersonal/SocialResponsibility (workcompletion).

. CASE#1ToddSorensen Toddworksfulltime(40hoursperweek)atSafewayasaNightRestocking Manager.Heworksthe10pmto6amshift.Hislargestmonthlyfixedexpenseis rent,whichcovershiswateruse.Helivesaloneinanareawithahighcrimerate. Heisalsopayingoffastudentloan.Hedroppedoutofcollegeaftertwoyearswith threeyearslefttocompleteanElectricalEngineeringdegree.Hehasamonthlyauto loanpaymentandautoinsurance,aswellastwocreditcardswithbalances.Hehas providedyouafolderwithstatementsandreceiptsshowinghismonthlyexpenses. Usethesedocumentstocreateanaccuratecurrentbudget,thenproposechangesin hisbudget. Toddkeepsmeaningtoopenasavingsaccountanddepositasmallportionofeach paycheckforemergencies,buthejusthasntgottenaroundtoityet.Toddalsofaces anotherproblem.Hiscarisgettingolderandheisstartingtohavemechanical problemsthatarenolongercoveredbythecarswarranty.Hismechanictellshim thatitwillcostabout$1,200togetthecarrunningsmoothlyagain.Toddneedshis cartogettoandfromwork. Task:Writealettertoyourclientwithacurrentandproposedbudget.Include specificrecommendationsonhowtoimprovehisshorttermandlongterm financialfuture.

PersonalFinancialManagementAssessment

 Trait
MT5:Economic DecisionMaking &Personal Finance

PersonalFinanceAssessmentRubric 4
Highlevelofknowledge ofthediversePersonal FinancialManagement concepts.Thoroughly discussescomplex relationshipsbetween financialconcepts. Convincinglysupports recommendations. Drawsconclusionsthat reflectclearandlogical linksbetweenthe informationor observationsandthe interpretationsmade fromthem.The rationaleforthe interpretationsshowsa thoughtfulandaccurate attentiontotheprocess ofinduction. Conceptscovered: Evidencetosupport claimsand recommendations. Concreteideasofhowto supportincomegrowth (overtime,twojobs). Somethingyoujustdid notseecomingandyour firstreactionwas wowwhatadifferent approachtothe problem.Iwonderhow theythoughtofthat! Connectsmajorthemes. Reallythinksbeyond thecoursecontent. Example:Recommends talkingtothebossabout overtimeandthentells youhowhe/shecould convincetheboss. Example:Movesback homeandofferstopay parentsrent.Takes savingsandstartsa diversifiedinvestment plan.Example:Creative argumentsthattalk aboutretirementin termsofpersonal retirementsavingsand socialsecurity. Example:Transfers creditcardbalancetoa lowerinterestcardand thencutsupthecardso he/shewillnotbe temptedtouseit.

3
Broaddemonstrationof PersonalFinancial Managementconcepts. Adequatelysupports financial recommendations.

2
Broaddemonstration ofPersonalFinancial Managementconcepts. Providessomesupport forrecommendations.

1
Makesbasic recommendations,but doesnotadequately support recommendations. Makessomeerroneous assumptionsand/or conclusions. Drawsmanyerroneous conclusionsfrom selectedinformationor observationsand cannotsatisfactorily describetherationale behindconclusions.

MT11:Critical andCreative Thinking

Presentsconclusionsthat withfewexceptions followlogicallyfrom selectedinformationor observations.

Presentssome conclusionsthat reflecterroneous interpretationsmade fromtheinformation orobservations.

MT5:Economic DecisionMaking &Personal Finance

MT11:Critical andCreative Thinking

Conceptscovered: Creativebudget.Needs versuswants.Highcost ofvehicleownership.Get aroommate.Early savings.Diversification ofinvestments. Emergencysavings account.Public transportation.PYF. Ruleof72.Planningfor retirement.Risk& returntradeoff. Importanceofgood credithistory. Conclusionisfully supportedbythebudget data.Containsabroad approachtothe recommendationsand onerecommendation flowslogicallyfromother recommendations.All formaconsistent packagethatwillleadto futuresuccesses.

Conceptscovered: Balancedbudget. Earlypayoffofdebt. Avoiduseofcredit cards.

Conceptscovered: Basicattemptat creatingarevised budget.Matherrors.

Minorattemptstoget creative.

Verybasiclevel.A formulatypeapproach tosolvingtheproblem.