Objective 1.01Task: Your financial team will meet with the client to gain a better understanding of who the client is. The team must then determine the positive and negative characteristics of each well-being domains for the client. Determine if the client has high well-being or a low well-being. The team will share their findings with the client, explain how this impacts their overall well-being, specifically how it impacts their finances. Design a visual aid, such as a chart, to better assist the client’s understanding.
Objective 2.03-.05 Task: Your financial team will meet with the client to gain a better understanding of their income, expenses, and/or spending habits. Depending on the clients current reason for meeting with your team will determine which forms will be completed. There are three main money management tools that can be used to assist clients. Statement of Financial Position (present), Income and Expense Statement (past), and a Spending Plan (future). Once your team discovers the client’s need select appropriate form(s) and begin assessing the client’s financial situation. Provide a written detail feedback to client as well as helpful tips that can improve client’s financial future.
Client #1
Michael J. Fisk is a 23 year old senior at the University of Chicago studying business and economics. He receives a $1500 stipend from the University. Michael is employed at two part-time jobs; a waiter at Giordano’s a pizza restaurant and hhgreg a home goods retailer. At Giordano’s he earns $8.25 per hour working typically 25 hours a week; Monday through Wednesday. At hhgreg he earns $10.35 per hour working typically 30 hours a week; Thursday through Sunday, sometimes Monday. Michael is paid bi-monthly and roughly 30% in taxes is taken before he receives his check. When he combines the taxes taken it is estimated that he pays $93 in State taxes, $80 in Federal taxes, and $86.80 in Social Security, and $50 Medicare each check.
Michael handles all his financial needs with Wells-Fargo bank. He currently has $235.80 in his checking account and $150.15 in his savings account. Michael typically carries about $30 in his pocket. He is not currently setting money aside for retirement. Michael owns a 2005 Camry that is possibly worth $3500. He has one credit card which he has a balance of $1500 and pays $70 a month towards the balance.
The following information are Michael’s monthly financial expenses:
Rent on campus: $1100 (electricity, water, and internet included)
Renter’s Insurance: $ 150Health Insurance: included in school tuition
Vision Insurance: $75Dental Insurance: $80State Taxes: $186
Federal Taxes: $160Social Security: $173.60Medicare: $100
Public Transportation: $120Parking: $100Gas: $50Vehicle Insurance: $110 Groceries: $200 Dining Out: $250 Cell Phone: $120 Household Products: $20 Personal Care Products: $30 Credit Card: $70
Michael has a great relationship with a small group of friends andgets along with the majority of his co-workers at both places of employment. People that know Michael consider him kind-hearted, humble, and usually the first to help anybody in need.Michael has been dating Sonya for 2 years and they have had a wonderful relationship. They have always been able to work through their disagreements, which were few and far between. Within the last two months they have had frequent conflicts and have been struggling to overcome them. The conflicts revolve around Michael being overwhelmed with the additional work hours, graduation approaching, trying to locate new apartment before graduating as well as finding a full time career that pays enough to meet his needs. Once he graduates he will have to move out of the campus apartment and he will no longer receive the $1500 stipend from the University. He has been able to maintain decent grades and currently has 3.3 GPA. Michael is in average shape for his age and does his best to work out every morning during the week. He rotates his cardio and strength training to minimize negative strain on his body.