Personal and Consumer Finance
Acct 115
Spring 2013
4credits/45 hours
Monday – 8:30am to 12:30pm
Instructor: Alice Coday
E- Mail:
TEL. (206) 251-7705
Course Description:
This courseprepares students to understand the fundamentals of managing personal finances and how the principles, concepts and application impact personal and work lives. Topics covered will include: goal setting, budgeting, banking and basic financial transactions, building, maintaining and improvingcredit, credit report and scores, home ownership, current regulations and practices governing consumer financial transactions including consumer protection laws, fair credit and collection, bankruptcy, banking services and products, insurance and investment, basic negotiating skills, financial counselor roles and skills sets, planning for education, retirement and basics investments.
Learning Objectives:
In this course students will:
•Understand, analyze and apply basic financial management concepts and tools for financial decisions
•Apply quantitative skills in use of financial decision making tools such as computing: a household budget, rates of return on investment or savings such as interest earnings; the actual costs of purchase/leasing options,costs of using credit over time, and calculating retirement needs.
•Identify strategies for achieving personal financial goals
•Understand credit and its uses
•Understand the sources and types of financial consumer protection laws and regulations
•Understand the basics skills and roles of financial advisors/counselors
•Understand the basics of negotiating consumer transactions
•Understand the basics of insurance
•Understand the fundamentals of investments
•Understand the home ownership process and financing a home purchase
•Understand the basics of planning for future needs, and retirement
•Understand the basics of public benefits and their role in financial stability and security
Required Materials:
1. Textbook: Kapoor, Dlabay & Hughes 10th Edition,Personal Finance, McGraw-Hill. Hardcover ISBN# 9780073530697
2. Instructor compiled materials- PowerPoint slides and Handouts:
Recommended:
- SKC ABC: Asset Building Issues in the News –
- LeMieux (2009), Breakfast at Sally's: One Homeless Man's Inspirational Journey, Skyhorse Publishing, New York, NY
Class format:This course will be an interactive learning experience consisting of a mixture of lectures, discussions, in class problems and homework. Class participation is strongly encouraged and will represent 10% of your grade. Non-attendance will negatively impact your participation score. You should expect to spend at least five hours a week to complete the assigned readings and homework.
Grading:
- Class participation –10%
- Homework assignments – 15%:Will be reviewed during class. If absent, homeworkmust besubmitted typed and submitted by email or in person no later than close of business at the end of the week!
- Group Exercises – 25% (Student teamswill apply concepts through use of role plays based on the case study assignments prepared individually, then discussing them in teams)
- Mid-term examination – 20%
- Final examination – 30%
Grading Scale: 90-100 A; 80-89 B; 70-79 C; 60-66 D; Below 65 F
Percentage conversion guidelines96% + / 4.0 / 91% / 3.5 / 86% / 3.0 / 81% / 2.5 / 76% / 2.0 / 71% / 1.5 / 66% / 1.0
95% / 3.9 / 90% / 3.4 / 85% / 2.9 / 80% / 2.4 / 75% / 1.9 / 70% / 1.4 / 65% / 0.0
94% / 3.8 / 89% / 3.3 / 84% / 2.8 / 79% / 2.3 / 74% / 1.8 / 69% / 1.3
93% / 3.7 / 88% / 3.2 / 83% / 2.7 / 78% / 2.2 / 73% / 1.7 / 68% / 1.2
92% / 3.6 / 87% / 3.1 / 82% / 2.6 / 77% / 2.1 / 72% / 1.6 / 67% / 1.1
Criteria for Class Participation: Contribute ideas, interact with peers and instructor, engage in class activities, maintain attention on class work, and come prepared for class (completed reading and assignments).
Policy on Late Work: Late projects or homeworkwill not be accepted, unless I have agreed to a grace period due to extenuating circumstances or hardship (requires substantiating documentation).
Teaching Philosophy: Memorizing textbooks and transcribing notes is not learning.You must develop a true comprehension and understanding of the course material. You must be able to apply what we discuss and what you read from the text. I am here to facilitate your learning of the information. We will do this through an integration of discussion, case studies, and exercises. During this course your comments, questions, stories, and suggestions are not only appreciated but expected. The more involved and
in-depth our discussions are, the more worthwhile and practical this experience will be for you. It’s your class; it will be what you make it!
Academic Integrity and Administrative Policies
Guidelines for Student Conduct: Students are expected to comply with student conduct policy and procedures. Information on student responsibilitiesand rights is available at.
Cell Phone Etiquette in the Classroom: To avoid disruption of the learning environment, students are expected to turn off cell phones during class.
Americans with Disabilities Act: If you need course adaptations or accommodation because of a disability; if you have emergency medical information to share with me; or if you need special arrangements in case the building must be evacuated; please let me know as soon as possible. Students with disabilities are encouraged to use Disability Services for support in implementing reasonable accommodations for their disabilities.
Academic Honesty: Academic honesty is highly valued at NSCC. You must always submit work that represents your original words or ideas. If any words or ideas are used that do not represent your original words or ideas, you are expected to cite all relevant sources both in the text and in the references listing at the end of the paper. You should also make clear the extent to which such sources were used. Words or ideas that require citations include, but are not limited to, all hardcopy or electronic publications, whether copyrighted or not, and all verbal or visual communication when the content of such communication clearly originates from an identifiable source.For a full description, go to
Attendance: If you anticipate an absence from class sessions that require your participation or completion of quizzes and exams you are encouraged to notify me in advance. Any attendance issues should be discussed prior to the absence. Repeated absence may interfere with your class participationand result in a lower grade for that component of the course. Make-up examinations will not be given routinely.
Course Schedule
Week 1 –Monday,April 1, 2013
Introduction–A Super Vitamin for Public Programs
Topic I: Money Management & Budgeting
Objectives:
- Overview of need for personal financial planning
- Analysis of personal financial decision-making process
- Understand and assess personal, financial and career drivers for financial planning
- Understand and apply basic goal setting techniques
- Understand relationship among various financial planning tools
- Develop a personal balance sheet (financial statement)
- Develop a personal income and expense statement
- Develop a personal cash flow statement
- Construct and implement a personal monthly budget
Assignment:
Personal Finance:Read
- Chapter 1, Personal Finance Basics and the Time Value of Money
- Chapter 2, Financial Aspects of Career Planning
- Chapter 3, Money Management Strategy: Financial Statements and Budgets
Complete exercises:
- Financial Planning Problems 2 -12, page 101
- Financial Planning Case, “A Little Becomes A Lot”, page 102.
- Complete Check your Financial Health at
Week 2 –Monday,April 8, 2013
Topic 2: Banking and Basic Financial Transactions
Objectives:
- Learn and understand the different types of depository financial institutions
- Understand fringe financial services and how these differ from financial institution services
- Compare costs and benefits of financial services offered
- Understand the different transactional, savings and payment accounts offered, and how to choose among them
- Understand how to calculate simple and compound interest, the rule of 78
Topic 3: Understanding a Credit Report
Objectives:
- Understand the sources and use of credit reports
- Learn how to obtain a credit report
- Understand how to read a credit report
- Learn how to correct a credit report
- Learn how a credit score is determined
- Understand how identity theft occurs, how to avoid it, and what to do if it occurs
Assignment:
Personal Finance: Read
- Chapter5, Financial Services: Savings Plans and Payment Accounts
- Chapter 6, Introduction to Consumer Credit
Complete exercises:
- Financial Planning Problems 1 – 12, page 167
- Obtain a copy of your own credit report from all three credit bureaus, review them. Did you notice any differences among them; in what areas? If there are errors or discrepancies, how would you handle them? Be prepared to discuss in class next week.
Week 3 –Monday,April 15, 2013
Topic 4: Using Credit Wisely
Objectives
- Understand the concept of credit and how it impactspersonal financial, work and/or business goals
- Understand how to obtain, maintain and improve credit
- Differentiate among the different types of credit
- Understand the terms and features of credit cards and factors to consider in selecting a credit card
- Understand how to calculate the cost of credit
- Know the regulations governing consumer credit and rights of consumers
- Understand predatory lending and its consequences
Assignment:
Personal Finance:Read
- Chapter 7, Choosing a Source of Credit: the Cost of Credit Alternatives, pages 212- 230
- Chapter 8, Consumer Purchasing Strategies and Legal Protection, pages 253 - 268
Complete exercises:
- Review RCW 19.60.060 Rates of interest and other fees — Sale of pledged property at
- What is the total cost, including the APR for a $100.00 pawn shop loan in Washington State (Hint: include the fee for the preparation of loan documents, pledges, or reports that may be charged, plus a storage fee). Be prepared to discuss in class.
Week 4 –Monday,April 22, 2013
Topic 5: Consumer Protection& Debt
Objectives:
- Understand your rights as a consumer and how to deal with debt collectors
- Know the consumer protection laws governing debt collectors
- Understand the role and jurisdiction of State and Federal agencies in consumer protection
- Understand the role of consumer counseling services and the regulations that govern them
Assignment:
Personal Finance:Read
- Chapter 7, Choosing a Source of Credit: the Cost of Credit Alternatives, pages 231-239
- Chapter 8, Consumer Purchasing Strategies and Legal Protection, pages 269 - 276
Complete exercises:
- Handling Harassment from Debt Collection Agencies, Answer #6, page 249
- Research a consumer counseling service online: describe the services offered, and how you think consumers would best benefit from enlisting the help of the agency.
Review: WashingtonLawHelp.org -
(a)Identify Medical Debt Resources at WashingtonLawHelp.org
Topic 6 Student Loans
Assignment:
Personal Finance: Read
- Chapter 7,pages 215 - 218
Week 5 –Monday,April 29, 2013 Mid-term (1.5 hours)
Topic 7: Bankruptcy
Objectives:
- Understand the different types of bankruptcy filings
- Learn the kinds of debt that can be discharged in bankruptcy, and which cannot be discharged
- Assess when bankruptcy is appropriate and how to prepare for it
Assignment:
Personal Finance: Read
- Chapter 7, Choosing a Source of Credit: the Cost of Credit Alternatives, pages 239 - 243.
Complete exercises:
- Assessing the Choices in Declaring Bankruptcy, Answer # 8, page 249
Go to: and
- Write a summary of the requirements for each type of bankruptcy and the advantages and disadvantages of each.
Week 6 –Monday,May 6, 2013
Topic 8: Financial Counselors/Advisors
Objectives:
- Understand types of financial advisors/counselors and credentials
- Understand techniques counselors use to interview and understand client financial issues
- Know when specific counseling techniques are appropriate and why
- Learn importance of and how a counselor preserves a client’s privacy in and out of the workplace
Assignment:
Personal Finance:Read
- Financial Planners and other Financial Planning information Resources, Appendix A, pages A-1 through A-6 (back of your book)
- Read class hand out Counseling Skills: Basics and Applications
Complete exercises:
- If you were planning for your retirement, what information would you seek to know, what criteria would you apply in selecting a financial advisor and why?
- Which counseling technique do you think would be most effectively used with you by a counselor or advisor, and why?
Week 7 –Monday,May 13, 2013
Topic 9:Essentials of Negotiation
Objectives:
- Understand when negotiation should be engaged in consumer transactions and managing debt
- Determine how to decide what is negotiable
- Learn different tactics for effective negotiation
- Recognize illegal negotiation or high pressure practices
Topic 10: Investments and Future Planning
Objectives:
- Learn what an advisor/counselor’s responsibility iswhen guiding a client on investments
- Understand the link between your goals and investment decisions
- Identify your need to assess the risk, income, growth potential and liquidity of types of investments
- Compare the different types of investment options available
- Identify types of stocks and their features
- Understand how to evaluate stocks as an investment
Assignment:
Personal Finance: Read
- Class handout Essentials of Negotiations
- Chapter 13, Investing Fundamentals
- Chapter 14, Investing in Stocks
Complete exercises:
- First Budget, Then Invest for Success! fact pattern. Answer# 1 – 5, page 457
- Research Information Available for Mergent; Answer #1 – 4, page 497
Week 8 –Monday,May 20, 2012
Topic 10 continued: Planning for Retirement, and Topic 11: Home Ownership
Objectives:
- Understand importance of planning for retirement
- Assess current financial status
- Determine retirement needs
- Identify appropriate steps to meet retirement needs
- Analyze the advantages and disadvantages of leasing vs. ownership
- Determine affordability of housing
- Understand the home purchase process
Topic 11: - Home Ownership - Mortgages
Objectives:
- Understand the characteristics of the different types of mortgages and how they work
(a)Adjustable mortgages
(b)Fixed rate mortgages
(c)Balloon mortgages
(d)Interest only mortgages
(e)Reverse mortgages
(f)Co-operative loans
Assignment:
Personal Finance:Read
- Chapter 18, Starting Early Retirement Planning
- Chapter 9, The Housing Decision: Factors and Finances pages 282–310
Complete exercises:
- Housing Decisions, Answer #1 – 3, page 314
- Personal Financial Planner in Action, Answer # 4 on housing and mortgage affordability.
- Review programs and criteria listed on the City of Seattle Office of Housing website at
- Identify nonprofits and banks that administer the City of Seattle’s first-time homebuyer loans. Explain each nonprofit’s approach to homeownership.
Week 9 –Monday, May 27, 2013 Memorial Day – Campus Closed
Week 10 –Monday,June 3, 2013
Topic 12: Insurance Issues
Objectives:
- Understand the purpose of insurance and the types of risks covered
- Identify the most commons types of insurances
- Factors to consider in choosing the right insurance policy
- Understand how the insurance deductible affects the premium
- Understand the purpose of disability insurance and the types of coverage
- Understand the types of Health Insurance Coverage
Assignment:
Personal Finance: Read
- Chapter 10, Property and Motor Vehicle Insurance, pages 316 - 322
- Chapter 11, Health, Disability and Long-Term Care
- Chapter 12, Life Insurance
Complete exercises:
- Answer # 4 and 11, page 383
- Life Insurance for the Young Married; Answer #1 – 2, page 421
- Read class handout: Benefits and Insurance Issues
- Explain how public benefits be used to fill gaps in insurance needs of individuals and why?
Week 11- Monday, June 10, 2013
Topic 12 continued: Life Insurance; and Benefits/Review
Objectives:
- Understand the purpose of life insurance
- Distinguish between types of life insurance policies
- Identify important terms in life insurance policies
- What are the basic employment related benefits
- Learn about some basic public benefits and how to access them
Friday, June 14, 2013take home final due @ 5 PM
References
Kapoor,Dlabay & Hughes (2010) Personal Finance, 10th Edition. McGraw-Hill. Hardcover, ISBN# 9780073530697
Blumenthal (2009), Wall Street Journal Guide to Starting Your Financial Life. Three Rivers Press, New York, NY
Reynolds & Bakken (2009), One-Income Household: How to Do a Lot with a Little, Adams Business, Avon, Mass.
Jimenez & Garcia (2008), Se Habla Dinero? Wiley & Sons, Inc., Hoboken, NJ
Optional On-line Readings
Introduction and Money Management and Budgeting
- FINRA Financial Capability study:
- Fellowes High Cost of Being Poor:
Banking and Basic Financial Transactions
- FDIC Unbanked Study:
Understanding a Credit Report
- “FICO reveals how common credit mistakes affect scores”, Jeremy M. Simon (Article):
Using Credit Wisely
- GAO- Credit Reporting Literacy:
- “The Plastic Safety Net: The Reality Behind Debt in America”:
- Who Pays? The Winners and Losers of Credit Card Deregulation:
Consumer Protection
- Washington State Consumer Protection Division:
Debt and Bankruptcy
- Surviving Debt, National Consumer Law Center (Book)
- Urban Justice: Debt Weight:
Counseling Techniques
- Evaluating the Effectiveness of Credit Counseling:
- Financial Coaching: A New Approach for Asset Building?:
- Behavioral Economics and Asset Building:
Negotiation Skills
- How to Negotiate with Your Creditors:
Investments and Future Planning
- The Retirement Security Project: Saving Incentives for Low and Middle Income Families
- Determinants of Asset Building:
- The Retirement Security Project: The Automatic 401(k)
On the Road to Homeownership
- Too Little, Too Late and Too Timid: The Federal Response to the Foreclosure Crisis at the 5-year MarkA Working Paper by Dan Immergluck, Professor, School of City and Regional Planning, Georgia Institute of Technology:
Insurance and Benefits
- New America Foundation - To Save or Not to Save:
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