|Personal Financial Plan
|Max POSSIBLEpoints earned|
|On-time (no exceptions made)||10%|
|5 pages (single spaced) or 10 pages double spaced… Minimum written material.
(maximium font of Times New Roman 14)
|Appendix: Charts, budgets, income statements or balance sheets, computations, pictures, etc… (should be located at the end of the Personal Financial Plan paper)||5%|
|Current situation (what is your story and how does it affect your current financial situation?) and Goals (Short term , intermediate, long term)||5%|
|Budgeting, Savings plan (It would be helpful to have charts or visuals)||5%|
|Taxes (current and future)||5%|
|Personal Loans (auto, home, education, business, etc…)||5%|
|Credit cards (managing and assessment of credit )||5%|
|Identity theft (preventing)||5%|
|Insurance (life and medical, how much do you need? Supplemental insurance outside of employment)||5%|
|Insurance (auto or home)||5%|
|Healthcare planning (long term care, health directive)||5%|
|Investing ( risk tolerance, asset allocation, diversification, asset classes, portfolio, timed goals)||5%|
|Retirement planning ( 401k, IRAs, ROTHs, life expectancy, saving for retirement, retirement income, inflation,
Medicare, Medicaid, social security, long term care)
|Estate planning ( wills, trusts, power of attorney, trustees, executor, beneficiary, insurance benefits, retirement account benefits, Paid-upon-death accounts, joint tenants, exclusions of persons in Wills, probate, intestate)||5%|
|What you learned from class and are applying to your life, guest speakers||5%|
|Back-up plans and overcoming future obstacles||5%|
It must be between 5 to 10 pages long. 5 pages of single spaced written material, or 10 pages of double spaced written material. All graphs, charts, budgets, etc… are NOT counted as part of the length of the WRITTEN material and should be placed in the Appendix at the very end of the paper. Explaining in detail what your plan is. The more detail and the more specific you are…the better. You will need to use all the resources that you’ve learned about Personal Finance…from projects, lectures, guest speakers, other students, etc.
You can use Vision Board/ bucket list (if it’s changed, explain what changed for you) as a template for your goal setting. You should have short term, intermediate, and long term goal and incorporate them into your financial planning.
- Tell me how you plan on getting from your current situation in order to achieve your short term goals, then what you plan to do after you achieve it. Afterwards go on and tell me about your career plans. Are you planning to get married? Have children? How many children? Being a stay-home parent? Buy a house somewhere? A few horses instead? Retire in Florida because of taxes?
- What are your intermediate goals, how do you plan on achieving it, what obstacles are there? What are your long term goals, how are you planning on achieving it, what obstacles are there?
- Provide a detailed explanation on your past, or current cash flow, what your future cash flow will hopefully be like. What areas do you think need improvements (e.g. increase savings, stop discretionary spending, use coupons and wait for sales more, get a second job, get better at delayed gratification, move in with my parents, etc…) and what techniques have your learned in order to accomplish that?
- Including a budget, savings plan, banking and investing, credit cards, identity theft awareness, taxes, loans, insurance (life, auto, home, disability, long term care), retirement, estate planning, things that you learned from guest speakers, classmate presentations…etc…
- What are your backup plans? ( Plan alternative routes to accomplishing your goals or dealing with challenging circumstances).
- Your personal analysis and conclusion.
REMEMBER I want you to be specific and detailed about your plans.
a) Includes savings plan, banking plan, investing plan, credit plan, tax planning, insurance, retirement, etc…
—–tying them into your goals
b) Understanding of material concepts and self-actualization of your own situation (what may work for others, might not work for you, vice versa…)
c) Self-assessment of financial situation and self-problem solving (how can you overcome this obstacle?)
d) self-accountability and the ability to plan ahead
e) back up planning (Plan A, Plan b, Plan c, etc…)
f) evaluating goals and priorities and seeing if they are realistic or do they need to change, or if they need to be revisited later
Example on how to start: I am currently 28 years old and a senior at X University… My short term goal is to graduate with my bachelors. I would like to graduate in two years and start working in X company. Currently I have Y amount of student loans and live off-campus. I make Z amount, but I end up spending it all and am unable to save. Sometimes I end up running out of money and putting things I need (and some things that I don’t need) onto my credit card that has an interest rate of 16%. I want to graduate debt free, but it will be hard. I’ll probably have to get a second job and it might make sense for me to move in with my parents so I can save. Right now I can probably work an extra 10 hours a week, on the weekends mostly. If I make minimum wage, then I could save at least 25 dollars a week or 100 dollars a month, which is 1200 dollars a year. I think that is manageable and I could also try put it in to an Roth IRA. My savings account is horrible! It give me only 0.50% in interest right now, plus I get a fee for overdraft. I should change banks. I remember doing the banking project for class and there is a bank near me that offers better terms and rates…etc, etc…
I attached a vision board project powerpoint document including my short term, intermediate and long term goals. You can use these goals to write a financial plan. Thank you so much!