JOHNS HOPKINS UNIVERSITY
CENTER FOR LEADERSHIP EDUCATION
THE WILLIAM P. CAREY PROGRAM IN ENTREPRENEURSHIP AND MANAGEMENT
PERSONAL FINANCE,
660.102, SPRING 2009
TTH 12-1:15PM
SHAFFER 2
INSTRUCTOR:
Annette Leps, CPA, MBA
Center for Leadership Education
Rm. 102, Whitehead Hall, x 7113
Email: aleps@jhu.edu
Office Hours:
MON
1:30-2:30PM
TUES
10:30-11:30AM
WED
1:30-2:30PM
& by appointment
COURSE ASST:
Bryan Power
Email: bpower2@jhu.edu
Office Hours: TBA
COURSE DESCRIPTION:
The course in Personal Finance is designed to familiarize the student with the basic concepts and
quantitative techniques of personal financial planning. The course begins with a discussion of personal
financial statements and the time value of money and moves on to the basic principles of financial
planning in the areas of taxation, financial institutions and liquidity management, consumer credit,
residential real estate, insurance, investments and retirement planning.
REQUIRED TEXT:
Bajtelsmit, Vickie J., Personal Finance: Skills for Life, 2006, John Wiley & Sons, Hoboken, NJ
COURSE OBJECTIVES:
This course seeks to provide training in the use of basic personal financial management tools. Upon
completion of this course, the student should be able to evaluate and make decisions with regard to a wide
range of personal financial issues and life situations. Specifically, a student who successfully completes
this course should be capable of:
 Constructing personal financial statements,
 Applying time value of money concepts to determine financial outcome,
 Understanding basic income tax preparation and planning,
 Evaluating the features and costs of various financial institution products,
 Balancing a bank statement,
 Evaluating the features and costs of the various types of consumer credit,
 Making an automobile purchase,
 Purchasing and financing residential real estate,
 Evaluating insurance needs and products,
 Evaluating different types of investment opportunities, and
 Planning and executing a retirement plan.
The course accomplishes the above objectives using a combination of classroom instruction, guest
speakers, problem and case analysis, and group projects. This course has no prerequisites.
USE OF BUSINESS CALCULATORS:
This course involves the use of certain mathematical formulas and functions which are pre-programmed
into such business calculators as the HP 10B, 12C, and 17B and the TI BA 35, BA II Plus, etc. Use of
these calculators for solving homework and test problems is allowed. However, please note that students
are not expected to purchase one of these calculators for this course and there will be no instruction
provided in their use. All subject material involving the time value of money can be solved using tables
in the textbook’s appendices.
STUDENT RESPONSIBILITIES AND CLASS POLICIES:
(1) Class attendance is vital to the successful completion of this course. Students are expected to
come to class having read the chapter material referenced.
(2) There will be a series of guest speakers for this class. As such, your attendance and attention are
mandatory for days when guest speakers are invited. Conflicts must be brought to the
instructor’s attention prior to the class.
(3) There will be a series of group presentations for this class. Attendance is mandatory for all
presentation days. Conflicts must be brought to the instructor’s attention prior to the class.
(4) Homework problems will not be collected or graded. However, students are strongly
encouraged to complete the assigned work.
(5) Students will be assigned group work, asked to research selected topics and present their
findings to the class. Presentations will be ranked and the group grade will be based on the
combined rankings.
(6) The focus of examinations will be on terminology and quantitative analysis. Calculators are
permissible for use during all exams and quizzes.
(7) Students are expected to take all examinations and to complete all assignments on the required
dates. Conflicts or other issues must be brought to the attention of the instructor before the
scheduled test time. Make-up exams may be arranged only at the discretion of the instructor
and the Department.
(8) Short in-class quizzes covering lectures and homework materials will be given over the course
of the semester. There will be no opportunity for students to make up missed quizzes; absences
must be brought to the attention of the instructor in advance of the quiz.
(9) This course is on WebCT. The site will be used to deliver PowerPoint slides, homework
solutions, special instructional information, course announcements, and other items of student
interest. Please monitor the course site regularly. Individual test, quiz, and group grades will be
posted on WebCT; any discrepancies must be brought to the attention of the Course Assistant
for resolution before April 30, 2009.
(10)
It is the responsibility of the student to obtain notes and assignments from colleagues for
any classes that were missed.
(11)
No Senior Options will be offered.
COLLEGE POLICY REGARDING STUDENT DISABILITIES:
If you have a disability that requires special testing accommodations or other classroom
modifications, please present a letter from Dr. Richard Sanders (Director of Academic Advising
in Arts & Sciences) stating the disability and the exact accommodations needed. I will do my best
to accommodate you in any way. Please do not be shy about coming forward.
ACADEMIC ETHICS
The strength of the university depends on academic and personal integrity. In this course you
must be honest and truthful. Ethical violations include cheating on exams, plagiarism, reuse of
assignments, improper use of the Internet and electronic devices, unauthorized collaboration,
alteration of graded assignments, forgery and falsification, lying, facilitating academic
dishonesty, and unfair competition.
Report any violations you witness to the instructor. You may consult the Associate Dean of
Student Affairs and/or chairman of the Ethics Board beforehand. See the guides on “Academic
Ethics for Undergraduates and Ethics Board Website (http://ethicsjhu.edu) for more information.
EVALUATIONS:
A 90-100
B
80-89
C
70-79
D 60-69
F
Below 60
Pluses and minuses will be used at the discretion of the instructor.
GRADING:
Test 1
Cumulative Final Exam
Group Presentations
Quizzes, assignments, and attendance
Total
35%
35%
20%
10%
100%
The Instructor reserves the right to change topics and assignments as needed depending
upon class progress.
CLASS TOPICS AND ASSIGNMENTS
WEEK 1: January 27 & 29
Chapters: 1 and 2
Topics: Course Introduction; Self Examination; Personal Financial Statements
Homework:
Application Problems (AP) Chapter 2, 1 thru 5
Begin a one-month diary of daily cash flows to be used in the construction of a cash flow
statement. (Finished product is Assignment #3 and due March 10)
WEEK 2: February 3 & 5
Chapters 2 and 3
Topics: Time Value of Money; Career Planning
February 5th: Guest Speaker: Tracy Carter, Johns Hopkins Career Center
Homework:
AP Chapter 2, 7-15
February 5: Assignment #1-Statement of Net Worth
Extra Credit Assignment #2: Resume and one-on-one session with Career Center by 4/30
WEEK 3: February 10 & 12
Chapter: 4
Topic: Tax planning and preparation
Homework:
All AP, Cases 4-1, 4-2 and 4-3
Quiz #1-Time Value of Money
WEEK 4: February 17 & 19
Chapter: 4(cont.) and 5
Topic: Taxes; Cash Management; Financial Institutions and Products
Homework:
All AP, Case 5-1
February 19: Group Project #1--Tax Return Preparation
WEEK 5: February 24 & 26
Chapters: 6 and 7
Topics: Consumer Credit and Management
TBA--Guest Speaker-Madeline Greene, Accredited Financial Counselor
Homework:
AP 6-4, 6-5, 6-6, 6-7, 6-8
AP 7-2, 7-3, 7-4, 7-8, 7-12
WEEK 6: March 3 & 5
Chapter: 8
Topics: Automobile and Housing Decisions
Quiz #2-Bank Reconciliation
March 3: Group Project #2--Banking and Credit Card Options
WEEK 7: March 10 & 12
March 10: Test #1-- Chapters 1 thru 7
March 10: Assignment #3- Cash Flow Statements
Chapter: 8 (continued)
Topic: Automobile and Housing Decisions
Homework:
AP 8-1, 8-2, 8-3, 8-4, 8-5, 8-6, 8-7, 8-8, 8-9, Case 8-1, 8-2, 8-3
Quiz #3-Rule of 72
SPRING BREAK: March 17 & 19
WEEK 8: March 24 & 26
Chapter: 9 and 16 (pages 530-534)
Topic: Risk Management and Asset Protection (Insurance)
Homework:
AP 9-3, 9-4, 9-5, 9-6; Cases 9-1, 9-2, 9-3
Quiz #4-Mortgages and Points
WEEK 9: March 31 and April 2
Chapters: 10, Chapter 15: p.486-503
Topics: Employee Benefits and Life Insurance
March 31--Guest Speaker--Lee Rock, CI; CPCU; PSA Financial, Inc.
Homework:
All Chapter 10 AP; Cases 10-1, 10-2, 10-3; AP 15-3, 15-4, 15-5, 15-8
WEEK 10: April 7 & 9
Chapter: 11
Topic: Investment Strategies
Homework:
All Chapter 11 AP; Cases 11-1, 11-2, 11-3
WEEK 11: April 14 & 16
Chapter 12
Topic: Investing in Common Stock
Homework:
All Chapter 12 AP; Cases 12-1, 12-2
April 14: Group Project #3-Biggest Loser Competition
Quiz #5-Calculation of Stock Returns
WEEK 12: April 21 & 23
Chapter: 13 and 14
Topics: Investing in Bonds, Preferred Stock and Mutual Funds
Homework:
All Chapter 13 AP; Cases 13-1, 13-2
Chapter 14 AP 1-9; Cases 14-1 and 14-2
Quiz #6—After-tax bond yields
WEEK 13: April 28 & 30
Chapters: 13 and 14 (cont.)
Topics: Mutual Funds
April 28: Group Project #4-Housing Options
FINAL EXAM: Saturday, May 9th, 9-12noon