Consumer Finance
- Financial Plan Paper Initial Discussion of Paper
Winter 2011
Fin / Invest / Business Law Cluster
Kevin C. Kaufhold
1
• In General, go through the Text in a Sequential Manner
• Use the Text as the blueprint or outline for the paper
• Use worksheets, financial ratios as supporting documents
• Weave these documents into the text as integral parts of your
paper
2
 Develop YOUR OWN Financial situation & Plan
 Describe in WORDS and CONCEPTS ---
Goals → Plans → Action
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•
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Your financial goals in life
Your current financial situation
What action to be taken to achieve the financial goals
3
• More specifically, Describe your Financial Goals
• Consider and discuss types of goals relevant in YOUR life
• p. 7 -14; ST goals, LT goals
• As an exhibit or figure, identify goals (Worksheet 1.1)
4
• Then, Describe your Financial Plans
• Consider and discuss planning items, p. 16 – 23;
• As another exhibit, Worksheet 1.2 - 2nd income (if applicable)
• Other special items, too
• Factor into the plan
• the business cycle (p. 29 – 31)
• inflation prospects in ST and LT
• and demographics (p. 31 – 34)
5
• Next, DESCRIBE your current Financial Status
• Use Worksheet 2.1 Balance Sheet (p. 43)
• Worksheet 2.2 Income and Expense Statement (p. 48)
• Pie chart (p. 49) can be done in Excel from worksheet 2.2
• Ratio Analysis (p. 54)
• Worksheet 2.3 Cash Budget by Month (p. 63)
• Worksheet 2.4 Budget Control Schedule
6
• Then, Detail your Financial Actions
• How do you propose getting to the goals from your current
financial position ?
• Develop a savings program (ch. 4, p. 129)
• Circulate a draft of the paper to family members for comments
• And to the instructor
7
• Keep adding, refining, fine-tuning the draft of your financial plan
• Add new knowledge & ideas
• Info gleamed from future chapters !
• And supplemental materials from instructor
• Add to the goals, plans, actions on a regular basis
• Treat the chapter items as a “wealth” of info for the paper
• Include relevant aspects of business law & investment chapter
• Include life / work experiences and knowledge
• Make the final paper a professional-level document
• Both as to quality
• And as to the paper’s format / overall presentation
8
• After the course ends, keep the financial plan
• Update annually
• Keeps you focused on LT financial goals
• Yearly net worth calculations can be used to graph out your
financial life cycle
• Can be used as the basis for a personal financial statement for
business / commercial loans
• The plan can also evolve into an retirement / tax / estate planning
document
• Assists in the development of tax issues, wills, and trusts
• A good financial plan done in college can be useful throughout
your life
9
Comments ?
Questions ?
10