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  1. 1. PERSONAL FINANCE FIN 218 Winter ‘06 Instructor : Jim Hunter Office Hours : 1:00 MW by Appointment Class Hours : MW 10:15 – 12:05 E-mail : Location: 227 Neuberger Hall Final Exam : 10:15, Wed. March 22 Telephone : 503 557 1891 CATALOG DESCRIPTION Survey of personal financial well-being, planning and budgeting, financial institutions, consumer credit, major purchases, wealth creation through investments in stocks, bonds, real estate and mutual funds, pension system including the social security system, employer plans, and estate planning from the individual’s viewpoint. LEARNING OBJECTIVES: The learning objectives are to provide a basic understanding of the following: 1. Planning process: to be able to use quantitative tools for measuring financial well- being, understand the importance of the time value of money, and be able to calculate the impact of taxes on financial decisions. 2. Managing your money: to understand the different strategies associated with controlling your financial plan through cash management, credit management, and the management of major purchases (home and auto). 3. Protecting yourself with insurance: to understand risk management and the utilization of insurance products to control your future financial health. 4. Managing your investments: understand the importance of investment goals and tools (stocks, bonds, mutual funds and real estate), be able to calculate tax impacts, and understand the concepts of risk vs. return, diversification, asset allocation and market efficiency. 5. Retirement and estate planning: understand the importance of establishing a sound, simple retirement plan at the earliest stages of your financial life cycle utilizing tax, insurance and investment planning. REQUIRED READING: Personal Finance: Turning Money into Wealth, updated 3rd Edition by Arthur J. Keown, Prenctice Hall, 2004
  2. 2. COURSE EXPECTATIONS Class will start and end promptly at the scheduled times. Class participants are responsible for all material in the book and discussed or presented in class through lectures. Attendance and completing homework assignments are required. One demerit is given for each class session missed or homework assignment not handed in. Four demerits is a full drop in the final grade and six demerits is an automatic F. Class participants are expected to maintain a high level of academic honesty and interaction. Cheating or plagiarism will be dealt with severely. ACADEMIC HONESTY IS A REQUIREMENT FOR PASSING THIS COURSE. COURSE REQUIREMENTS Midterm Exam : The midterm will cover the first five weeks of the quarter. Questions and problems will be similar to those in the homework. Final Exam : The final will be similar in format as the mid-term and will cover the remainder of the material. It will not be comprehensive. Financial Plan : A four to six page narrative covering your financial plan accompanied by several worksheets as exhibits. Required exhibits include worksheets 1, 3, 4, 6, 7, 15, 23, 26, and 37. Some worksheets are to be handed in with the homework as the material is covered. (See the attached Homework Schedule). We will be reviewing these worksheets in the classroom. Also, included in the financial plan is a job search in which you project your job upon graduation and research what the salary range will be (salary and are good places to start). Homework : Homework assignments for material covered in class must be handed in when due. NO LATE HAND-INS. See the schedule attached. GRADING Mid Term: 50 pts Final Exam: 50 pts Financial Plan 100 pts Total 200 pts Grading will be based on straight percentage points (90% A, 80% B, 70% C, 60% D, and F for below), +’s and –‘s also will be reflective of point percentage. If you choose to
  3. 3. discontinue attending class, you must formally drop or you will receive the grade reflected in your point total. CLASS AND LECTURE SCHEDULE DATE CHAPTER TOPIC 1/9 1. Introduction and Financial Goals 1/15 2. Financial Planning 1/18 3. Time Value of Money 1/23 4. Tax Strategies 1/25 5. Cash Management 1/30 6. Credit Card Management 2/1 7. Consumer Loans 2/6 8. Major Expenditures 2/8 Mid Term Exam 2/13 9. Life and Health Insurance 2/15 10. Property and Liability Insurance 2/20 11. Investment Basics 2/22 12. Securities Markets 2/27 13. Investing in Stocks 3/1 14. Investing in Bonds etc. 3/6 15. Mutual Funds 3/8 16. Retirement Planning 3/13 17. Estate Planning (Financial Plan due today) 3/15 18. Financial Future 3/22 Final Exam
  4. 4. HOMEWORK SCHEDULE DATE CHAPTER QUESTIONS PROBLEMS W/SHEETS 1/11 1. 5,8 2,3 #1 1/18 2. 7,9 1,2,3 #6,#7 (curr) 1/23 3. 1,4,5,6,9,10 1/25 4. 3,9,15,20 1,7 1/30 5. 4,11,14 1,2,4 2/1 6. 1,3,11 2,8 2/6 7. 2,3,5,7 2,5,7,10 2/8 8. 8,13,15,25,27 1,2,4,7,8 #15,#23 2/15 9. 1,2,6,7,11,19 2,5,6 #26 (c/p) 2/20 10. 2,10 3,5,8 2/22 11. 3,6,8,11,15,17 1,5,9 2/27 12. 2,5,8,11,17 1,9 3/1 13. 5,8,9,11,17 1,2,3,6 3/6 14. 2,5,8,14 1,4,5 3/8 15. 3,4,9,10,13 1,3,4,5 3/13 16. 1,8,9,10,17,19 1,4,7,9 #37 3/15 17. 5,8,10,12,16 1,4,5,6,9 curr = current c/p = current or projected
  5. 5. FINANCIAL PLAN This a four to six page typed narrative and summary of financial goals and projections based on the worksheets (completed and attached as exhibits) from this point in time until the settling of your estate. It is to be INFORMATIVE, QUANTITATIVE AND SPECIFIC. Sub headings must include the following topics:  Personal financial goals  Career projection (title and income)  Net worth, current and projected  Budget of current situation  Income statement  Debt : Credit card, consumer debt, mortgage and other  Insurance : Life, health, disability, Long term care, home and auto  Investment and retirement planning  Estate planning Due Monday, March 13th at the BEGINNING OF CLASS.