Erie Community College Advanced Studies

BU233 Consumer Finance

Course Outline

Adjunct Professor: Mrs. Amanda Bolin

Phone:646-3300Office Hours: Monday – Friday 2:50 – 3:20

Suggested Textbook:

Financial Planning Guide, National Endowment for Financial Education, 2006.

Course Description:

Credit Hours:3
A general interest course designed to help the individual better understand the financial world in which we live today. Topics will enhance one’s ability to make personal financial decisions which will include establishing an individual’s financial goals, making decisions on saving money, making investments, buying a car, acquiring insurance and budgeting. This course is designed to benefit all and therefore, no prior business training is required.
F/S (C, N, S)
This course is to be used as an open college elective for non-business majors. Courses may include the preparation of personal financial software.

Curriculum/Program:Business Administration

Duration of Instructional Period:42 minutes, (5 class meetings per week, 20 weeks)

Academic Credit Hours: Three lecture hours, no lab, three credit hours (3-0-3)

Course Outcomes:To provide the student with enough foundation information to make intelligent decisions and to realize when outside expertise should be contacted.

Assessment of Student Learning:

Projects30%

Tests and Quizzes30%

Homework20%

Final Exam20%

Grading Chart:

A = 94-100, A- = 90-93, B+ = 87-89, B = 84-86, B- = 80-83,

C+ = 77-79, C = 74-76, C- = 70-73, D = 65-69, F = 64 & Below

Course Outline:

  1. Unit 1 - MONEY
  1. What is money and why is it important?
  2. Description and characteristics of money
  3. US currency has value (not back on gold, value is based on the confidence in and strength of the US government)
  4. Role of the Treasury Department
  5. The emergence of a cashless society
  6. Gift cards
  7. Debit Cards
  8. Checks
  9. Money Order
  10. Credit Card
  11. Electronic Transfer
  12. Sources of Income
  13. Employment, investments, self-employment, rental income, profits on the sale of goods/services, overtime pay
  14. Factors influencing income
  15. Education, knowledge, skills
  16. Job opportunities
  17. Lifestyle age
  18. Employment benefits (monetary and non-monetary)
  19. Inflation and Deflation (Characteristics of each and the impact of each on income, purchasing power, and money in circulation)
  20. Taxation
  21. Paycheck
  22. Gross vs. Net Pay
  23. Paycheck and Pay Stub
  24. Mandatory and optional payroll deductions
  25. Payroll exemptions
  26. Payday Lending
  1. Unit 2 – Manage your money
  1. What is financial planning?
  2. Setting Financial Goals
  3. Timelines
  4. SMART Goals
  5. Analyzing personal financial information
  6. Net Worth
  7. Creating a Budget/Spending Plan
  8. Budget Categories (income, expenses-fixed and variable, savings)
  9. Limited Resources
  10. Needs vs. wants
  11. Opportunity Cost
  12. Guidelines for emergency fund (3-6 months of income)
  13. PAY YOURSELF FIRST PHILOSOPHY
  14. Implementing a Financial Plan
  15. Purchasing strategies
  16. Record keeping
  17. Monitoring and Modifying a Financial Plan
  18. Financial Software
  1. Unit 3 – BORROWING BASICS
  1. What is credit?
  2. Interest rates and yields
  3. Role of FED in establishing/regulating interest rates
  4. Sources of credit: banks, credit unions, finance companies, credit card companies, mortgage brokers, auto-finance companies, retail stores, government,
  5. Types of Credit
  6. Credit Cards (The NEW RULE FOR CREDIT CARDS)
  7. Installment Loans
  8. Mortgages/Home Equity Lines of Credit
  9. The Cost of Credit
  10. Fees
  11. Interest
  12. Risks of using credit
  13. How Credit Decisions are Made (Cs of Credit)
  14. Credit History
  15. Credit Reports
  16. Credit Problems and Identity Theft
  17. SMART Credit for LIFE! (Projects)
  18. Student Loans
  19. Buying a car
  20. Buying a house
  21. Using credit wisely
  1. Unit 4 - BANKING PRODUCTS/SERVICES
  1. Importance of saving to meet goals
  2. Importance of banking
  3. Liquidity vs. illiquidity
  4. Safety in banking (FDIC)
  5. Types of banks
  6. Credit Unions, Savings Banks, Commercial Banks, Brokerage Firms
  7. How to choose a bank
  8. Banking services and products
  9. ATM Cards
  10. Debit Cards
  11. Money Orders
  12. Cashier Checks
  13. Checking Accounts
  14. Savings Accounts
  15. General, CDs, Money Market, IRA, Savings Bonds)
  16. Electronic Banking
  17. Direct Deposit
  1. Unit 5 – INVESTING
  1. Investing Options and Vehicles
  2. Stocks (Stock Market Game)
  3. Bonds
  4. Mutual Funds
  5. Exchange-Traded Funds (ETFs)
  6. Real Estate
  7. Other Alternatives (Collectibles)
  8. Brokers vs. online investments
  9. Markets
  10. Stock exchanges (NYSE, NASDAQ, commodities, options, futures)
  11. Major indices (S&P 500, Dow)
  12. Concepts
  13. Time Value of Money
  14. Rule of 72
  15. Simple Interest vs. Compound Interest
  16. Relationship between risk and return
  17. Modern Portfolio Theory
  1. Unit 6– PROTECT YOUR FUTURE: INSURANCE
  1. Insurance Basics
  2. Purpose
  3. Risk Management
  4. Determining insurance needs, comparison shopping
  5. Terminology: premium, coverage, deductible, claim, benefit, face value, benefit period
  6. TYPES OF INSURANCE – WHO THEY ARE FOR, HOW THEY WORK
  7. Automobile
  8. Health (employer sponsored, government sponsored, private)
  9. Life
  10. Property
  11. Disability

Last revised: Wednesday, May 22, 2013aeb