Personal Finance
March / April 2009
Professor:
Arshad Ahmad, PhD. John Molson School of Business, Concordia University
Montreal, Canada. Email: arshad@jmsb.concordia.ca
Objectives & Learning Outcomes:
This Seminar on Personal finance is not about "hot tips" or discovering money-making machines!
Rather, it is about participating in critical discussions, immersing yourself in case study and thinking on
your feet on a variety of topics in Personal Finance.
This seminar will help you experience deep learning in the following areas: (1) credit and money
management, (2) retirement issues, (3) investing in real estate and (4) risk management.
At the end of this seminar, you should be able to:
 Increase your knowledge and confidence on the 4 topics mentioned above.
 Critically evaluate in-class documentaries, specific articles and expert presentations.
 Understand your role and strengths in class discussion and asking good questions.
 Improve research and writing skills in brief reports on topics as they pertain to Russian markets,
products and the consumers.
 Enhance analytical and problem-solving skills using a case study.
Class Activities
We will see three documentary Videos, invite two industry experts in class (topics TBA), focus on
suggested articles, your research reports, and class presentations.
Evaluation
Participation
Reading Assignment Report
Individual/ Group Concept Presentation
Take-Home Case
Total
20%
30
20
30
100%
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Evaluation Details
Participation – 20%
This is a significant portion of your grade which you can earn by coming prepared by reading the
assigned articles and any other background reading you wish in advance. For each seminar session,
you will be asked to identify at least three concepts, issues or questions related to the topic for that
session. You need to write these three concepts, issues or questions and be prepared to hand them to
your professor in class if so requested (10%). You are also encouraged to contribute to class discussion
(15%).
Reading Assignment Report - 30%
The class will be divided into 3 groups and each group will write 3 Reports. Your individual task is to
carefully read the assigned articles, search for more related articles, and then generate answers to as
many questions as you can that follow each topic (see next page). Then pool your work within your
group members and prepare a 5 page report using the following headings:
Introduction
Summarize and highlight your main findings. This is a brief description of what your research reveals (avoid
opinions and focus on a good summary) Max length: ½ page.
Responses to Questions
Respond to as many questions listed under each topic below as you can. If you need additional space, use
Appendices for details. Max length: 4 pages.
Conclusions
What are the key learning’s from your research, readings and group discussion? Comment on how your
behaviour’s are likely to change considering the practical aspects of your research. Max length: ½ page.
Important
Please provide a bibliography for all of your sources that you cite in your Report. The group will read each others
work and negotiate what aspects from each group member should go into one report. Note, each group hands in
one report that will be graded.
Individual or Group Concept Presentation - 20%
The last class will be devoted to individual and/or concept presentations. You will be asked to present
1 mini-topic or concept in personal finance in 10 minutes. You can select a mini-topic or concept that
interests you (for eg. an insurance product, a market index, a hedge or mutual fund, etc.) but you must
have your topic approved by the Professor. Presentation marks assigned will be based on: (1) the
clarity of content presented; (2) getting the rest of the class engaged; and (3) responding to questions
raised by the audience.
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Take Home Case - 30%
Case: Polanco: A Fashionable Opportunity (HBS Case No. 9-209-012)
Case Questions:
1. Assess the Polanco market and support your analysis qualitatively and quantitatively.
2. How should Roberto manage his relationship with the Architect? Are the designs satisfactory?
3. Should Roberto rent or sell the units?
4. How should Roberto balance his day job commitments with those arising from investing in real
estate?
Please refer to the following format in writing your case report:
Your report should define the major issues, conduct an analysis that addresses these issues, and
arriving at conclusions for action. The maximum length of the case report is 5 pages,. There are no
limits to appendices. In your analysis, use headings that address the 4 questions provided above.
Capture the interest of the reader and link the following elements so that readers with little or no
financial background can understand your report.
Introduction & Problem Statement:
Summarize and highlight events and information from the case that provides a context for your
problem statement and analysis. Identify the major and minor issues that you will address. Max
length: ½ page.
Analysis:
Specify assumptions that you require to proceed with case information. Using relevant case
information only, develop arguments supported by information in the case and calculations when
necessary. Demonstrate deep understanding of the issues. Present evidence to substantiate decisions
that you have undertaken. Weigh alternative courses of action. Max length: 4 pages.
Conclusions:
Summarize how you have addressed the main issues. Follow up with recommendations. Max length: ½
page.
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Reading Assignment Topics
Topic 1: Managing Personal Credit
In Class Video: The Secret History of Credit Cards
Articles:
 Charge It!:http://www.pbs.org/wgbh/pages/frontline/shows/credit/eight/responsibility.html
 Russia finance:Creditworthy. Jun 17,2004.Economist Intelligence Unit Ltd. See: EIUViewsWire.
Suggested Questions:
 Briefly describe the credit card industry in Russia. For example, who are the major credit card
companies?
 How well do they perform financially? Do consumers frequently use credit cards?
 If you were a financial advisor, what information would you provide to your client to manage
his credit card debt?
 Who is responsible for credit card debt? Is it the consumer or the credit card company?
 Why do consumers spend more with credit cards?
 What are the risks of credit cards?
 Is it better to pay off debt with saved money or keep savings in case of emergencies?
Topic 2: Retirement
In Class Video: Can you afford to retire?
Articles:
 “Youth is wasted on the Generation Y investor”
http://www.pbs.org/wgbh/pages/frontline/retirement/world/geny.html
 “Baby Boomers Face Massive Loss of Retirement Wealth Due to Housing Market Meltdown”
http://www.cepr.net/index.php/press-releases/press-releases/baby-boomers-face-massive-lossof-retirement-wealth-due-to-housing-market-meltdown/
Suggested Questions:
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Briefly describe and compare the main Russian retirement savings strategies. Based on the
strategies available, is there a preferable option?
What can you personally do to financially prepare yourself for retirement to ensure that your
current lifestyle is maintained?
What factors might keep you from saving enough money for retirement? What are some of the
common mistakes that people make?
How do you determine how much money is needed for retirement?
How can you better inform yourself about retirement options?
What are some of the advantages and disadvantages of each retirement savings strategy?
Who is paying for your retirement?
What kind of life do baby boomers face if retirement is no longer feasible?
Topic 3: Risk Management
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Online: http://vimeo.com/3261363?pg=embed&sec=&hd=1
http://www.wired.com/techbiz/it/magazine/17-03/wp_quant
In Class Video: Inside the Meltdown
Articles:
 Buehler, K., Freeman, A & Hulme, R. (2008). The New Arsenal of Risk Management. Harvard
Business Review
 Lewis, M (2008). The End of Wall Street’s Boom.
http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-WallStreets-Boom
Suggested Questions:
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What is the evolution of risk management practices in Russia?
How do consumers of financial products generally view risk?
Briefly describe and compare the impact of the financial meltdown in the United States and
Europe as it impacts on Russian Financial Institutions. How are consumers affected?
How will the economic crisis affect personal financing in terms of the ability to get loans, credit,
insurance products, real estate, and private banking?
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Course Schedule
Date
Topic, Activities and Due Dates
March
18
Welcome & Introduction; Managing Personal Credit
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21
Discuss topics for individual/group presentations
Video The Secret History of Credit Cards
Discussion
Share group research on suggested questions (see page 3)
Report due next class
Retirement Issues
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Approve topics for individual/group presentations
Video: Can you afford to retire?
Discussion
Share group research on suggested questions (see page 4)
Guest Speaker (TBA)
Report on Personal Credit is Due
Due date for Report on Retirement TBA
Clarify questions re. take home case
APRIL
27
Risk Management
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29
Video: Inside the Meltdown
Discussion
Share group research on suggested questions (see page 4)
Guest Speaker (TBA)
Due date for Report on Risk Management TBA
Concept Presentations; Wrap Up
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Report on Risk Management is Due
Take Home Case Due
Individual/Group presentations
Overview and Key Learning’s
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ARSHAD AHMAD, Ph.D.
Dr. Arshad Ahmad is an Associate Professor in the Department of Finance at Concordia University in
Montreal, Canada. Dr. Ahmad has led his faculty in numerous pedagogical innovations. He was the
first to introduce an elective web based course in Personal Finance, which today attracts over 500
students each semester. He was also the first to design business courses using theory-based models
from cognitive and instructional science. For his PhD thesis, he validated an open learning model that
earned him the George L. Geis best dissertation award in higher education.
Winner of several teaching awards, Dr. Ahmad was awarded a 3M National Teaching Fellowship in
1992 for teaching excellence and educational leadership. For the past six years, he has been
Coordinator of the Fellowship Program. Dr. Ahmad has also produced a rich variety of learning
materials that include three textbooks, several supplements, case studies, video series, CD ROMs,
web-course frameworks, and other devices on the world wide web.
For his expertise in Corporate Finance, Interdisciplinary Curriculum design, Technology Integration,
Pedagogy and Professional Development, Dr. Ahmad has been invited to give seminars and workshops
to Universities & Colleges across Canada. He has also worked extensively in both the public and private
sector Institutions in the US, Germany, France, Latvia, Lithuania, Slovenia, Serbia, Trinidad & Tobago,
China, and Pakistan as a trainer, consultant and seminar leader.
Arshad Ahmad, Ph.D.
Associate Professor
3M Teaching Fellow & Program Coordinator
Finance Department
Concordia University
1455 deMaisonneuve West
Montreal, Que. H3G 1M8
(514) 848-2424 extension 2928
email:arshad@jmsb.concordia.ca
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