Part1:LifewithSallyasaHighSchoolStudent
Directions:ReadthefollowingscenarioandanswerthequestionsthatfollowtohelpSallydevelopapersonalfinancialplan.
SallySmithisa16year-oldhighschooljunior. Shevalues herfamilyanddreamsofhavingafamilyofherown.Sheisveryfocusedonhavingasuccessfulcareerinthefuture.Sallyhasapart-timejobasalifeguardatthelocalpool.Shemakes$250permonthatthisjob,andheronlyexpenseispayingforpersonalentertainment, suchasgoingtomoviesfriends.Shehasnotmadeanyplansforaftershegraduateshighschool,butshehasbeensavingmoneyfromherjobtouseforherundecidedplansaftergraduation.Sally’s momhashelpedhermanagehermoney,andshehasbeenabletosave$1000touseforplansafterhighschool.Sallyenjoysstayingbusy,sosheisamemberofherschool’sswimmingteam,orchestra, andchoir.Sallyenjoysmakingmusic andhasconsideredbeingamusicteacher.However,Sallyalso enjoystakingwoodworkingclassesandhasconsideredacareerinwoodworkingorcarpentry.
1. WhatvaluesdoesSallyhavethatwillaffectherpersonalfinancialplan?
2. WhatstageofthefinanciallifecycleisSallycurrentlyin?HowwillthisaffectSally’sfinancialplan?
3. WhatareSally’scurrentlifecycleneeds?
4. HowdoSally’s currentlifecycleneedsaffectherpersonalfinancialplan?
5. UsetheinformationabovetohelpSallybegin developingafinancialplanbywritingtwoSMART
financialgoalsforher.a.Goal1
©FamilyEconomicsFinancialEducation–Revised May2010–IntroductiontoFinance–LifeCycleofFinancialPlanning–Page12
Fundedbyagrantfrom TakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaInstitute atTheUniversity ofArizona
b. Goal2
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6. ListaresourcethatisavailabletoSallytohelpherachieveeachofherfinancialgoals. a.ResourceforGoal1
b. ResourceforGoal2
7. Why isitimportantforSallytostartherfinancialplanningtoday?
8. Identifythreepersonalvalues,goals,and/orpersonalchoiceswhichcanaffectahighschoolstudent’sfinancialplan.
Part2:LifewithSallyasaYoungAdult
Directions: Sallyisnow23yearsold.Afterhighschool,shechosetoattendcollegetobecomeamusicteacher.Sallygraduatedfromcollegelastmonthandhasnowacceptedafull-timejobastheChoirdirectoratalocalhighschool.Thepersonalchoicesshemadeduringcollegearenowaffectingherfinancialplan.BelowaretwoscenariosthatreflectthechoicesSallycould havemadeduringheryearsincollege.Readeach scenarioandanswerthequestionsthatfollowtoexaminehowfinancialplanningisinfluencedbypersonalchoices.
Scenario1:
Duringcollege,Sallydecidedtoputallofherfocusintoschool.Shedidnothaveapart-timejob,sosheusedherstudentloansandcreditcardstopayforherlivingexpenses.BythetimeSallygraduated collegeshehadaverylargeamountofcreditcarddebtandstudentloansthatshenowhastopayback.Byonly makingtheminimumpayments,shecalculatedthatitwilltakehertenyearstopaybackherstudentloansandcreditcarddebt.Withthesalaryfromhernewjobasateacher,shehasnomoneylefttouseforentertainment,savings,orretirementinvestingafterherlivingexpenses,studentloans,andcreditcards havebeenpaidforeachmonth.Sallydecidedtotakeasecondjobworkingafeweveningsperweek,soshecanatleasthavesomeextramoneyeverymonthtouseforentertainment.Shehascalculatedthatshewillearnanextra$200permonththatcanbeusedforentertainment,savings,oradditionaldebtrepayment.
©FamilyEconomicsFinancialEducation–Revised May2010–IntroductiontoFinance–LifeCycleofFinancialPlanning–Page13
Fundedbyagrantfrom TakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaInstitute atTheUniversity ofArizona
9. HaveSally’svaluesandgoalschangedsinceshewas16yearsold?Explain.
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10.IsSallyinadifferentfinanciallifecyclestageatthispointinherlifethanshewasat16?Ifso,howwillthisaffectSally’s currentfinancialplan?
11.HaveSally’slifecycleneedschanged sinceshewas16?
12.Usetheinformationabovetocreate newSMARTfinancialgoalsforSallyatthispointinherlife.a. Goal1
b. Goal2
13.HowhasSally’sfinancialplanchangedsinceshewas16?
14.HowhaveSally’spersonal choicesaffectedherfinancialplan?
Scenario2:
Sallyusedthelifeguardingskillssheobtainedduringhighschooltogetapart-timejobattherecreationalcenterat hercollege.Shestartedworkingasalifeguardandwassoonpromotedtoassistantmanagerbecauseofherworkethicandexcellentgradesinhercollegecourses.Asassistantmanageroftherecreationalcenter,Sallyreceivedascholarshipeverysemestertohelppayforherschool,andshewasabletograduate withnostudentloandebt.Withhernewjobasateacher,sheisabletopayallofherlivingexpenses,aswellasputmoneyintosavingsandher
retirementplaneverymonth.Shehasgivenherselfabudgetof$100permonthforentertainmentandotherpersonalexpenses.
15.HaveSally’svaluesandgoalschangedsinceshewas16yearsold?Explain.
©FamilyEconomicsFinancialEducation–Revised May2010–IntroductiontoFinance–LifeCycleofFinancialPlanning–Page14
Fundedbyagrantfrom TakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaInstitute atTheUniversity ofArizona
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16.IsSallyinadifferentfinanciallifecyclestageatthispointinherlifethanshewasat16?Ifso,howwillthisaffectSally’s currentfinancialplan?
17.HaveSally’slifecycleneedschanged sinceshewas16?
18.Usetheinformationabovetocreate newSMARTfinancialgoalsforSallyatthispointinherlife.a. Goal1
b. Goal2
19.HowhasSally’sfinancialplanchangedsinceshewas16?
20.HowhaveSally’spersonal choicesaffectedherfinancialplan?