PERSONAL AND FAMILY FINANCE                                                               Course Syllabus 2004

Instructor: Del Spencer -- Office T214 -- 675-6251                                                    e-mail: dspencer@tvcc.edu

 

COURSE NUMBER, NAME, AND PREREQUISITE:

 

BUSI 1307, Personal And Family Finance. Prerequisite: None.

 

COURSE DESCRIPTION:

 

A study of the financial problems which people encounter in their personal and family accounts. Includes topics on: goal setting, financial planning, credit, debt management, financial statements, budgets, insurance, taxes, borrowing, housing, investments, retirement, and estate transfer.

 

TEXTBOOK:

 

Personal Financial, Second Edition, by Jeff Madura, Pearson Addison-Wesley, 2004, pp. 648.

ISBN: 0-321-16591-8

 

COURSE OBJECTIVE:

 

After completing the course, the student should be able to develop a financial plan of their own by having an understanding of the following components of a financial plan:

 

¬     Budgeting

¬     Managing Liquidity

¬     Personal Financing

¬     Protecting Assets and Income

¬     Managing Investments

¬     Retirement Planning

 

CHAPTER OBJECTIVES:

 

After completing Chapter 1, the student should be able to:

¬     have an understanding of the subject of personal finance

¬     identify the key components of a financial plan

¬     outline the steps involved in developing a financial plan

 

After completing Chapter 2, the student should be able to:

¬     explain how to create a personal cash flow statement

¬     identify the factors that affect cash flows

¬     show how to create a budget based on forecasted cash flows

¬     describe how to create a personal balance sheet

¬     explain how net cash flows are related to a personal balance sheet

 

After completing Chapter 6, the student should be able to:

¬     provide a background on money management

¬     describe the most popular money market investments

¬     identify the risk associated with money market investments

¬     explain how to manage the risk of money market investments

 

After completing Chapter 7, the student should be able to:

¬     provide a background on credit

¬     explain the key characteristics of credit cards

¬     offer tips on using credit cards

 

After completing Chapter 8, the student should be able to:

¬     provide a background on personal loans

¬     outline the types of interest rates that are charged on personal loans

¬     describe home equity loans

¬     discuss car loans

¬     explain how to decide between financing the purchase of a car and leasing a car

¬     describe the key features of student loans

 

After completing Chapter 9, the student should be able to:

¬     explain how to select a home to purchase

¬     explain how to conduct a valuation of a home

¬     describe the transaction costs of purchasing a home

¬     identify the characteristics of a fixed-rate mortgage

¬     describe the characteristics of an adjustable-rate mortgage

¬     show how to compare the costs of purchasing versus renting a home

¬     explain the mortgage refinancing decision

 

After completing Chapter 10, the student should be able to:

¬     explain the role of risk management

¬     outline typical provisions of auto insurance

¬     describe financial coverage provided by homeowner’s insurance

 

After completing Chapter 11, the student should be able to:

¬     identify and compare the types of private health care plans

¬     explain the use of government health care plans

¬     describe long-term care insurance

¬     explain the benefits of disability insurance

 

After completing Chapter 15, the student should be able to:

¬     identify the functions of stock exchanges

¬     explain how to execute the purchase or sale of stocks

¬     discuss buying stocks on margin

¬     explain how to assess a stock portfolio’s performance

 

After completing Chapter 16, the student should be able to:

¬     identify the different types of bonds

¬     explain what affects the return from investing in a bond

¬     describe why some bonds are risky

¬     identify common bond investment strategies

 

After completing Chapter 19, the student should be able to:

¬     describe the role of Social Security

¬     explain the difference between defined-benefit and defined-contribution plans

¬     present the key decisions you must make regarding retirement plans

¬     introduce the retirement plans offered by employers

¬     outline the retirement plans available for self-employed individuals

¬     describe types of individual retirement accounts

¬     illustrate how to estimate the saving s you will have in your retirement account at the time you retire

¬     show how to measure the tax benefits from contributing to a retirement account

 

After completing Chapter 20, the student should be able to:

¬     explain the use of a will

¬     describe estate taxes

¬     explain the sue of trusts, gifts, and contributions

¬     introduce other aspects of estate planning

 

METHODS OF EVALUATION:

 

There will be 6 major written objective tests. The sixth test will be the final exam. Major tests will be multiple-choice, matching, completion, and problems.

 

INSTRUCTIONAL METHODS:

 

The major portion of class time will be used for lecture and discussion. PowerPoint Presentations, Overhead transparencies, videos, case studies, internet, and outside assignments will be used in conjunction with the lectures.

 

TEST SCHEDULE:

 

Test 1 - Chapters 1-2                                       Test 4 - Chapters 8-9

Test 2 - Chapters 6-7                                       Test 5 - Chapters 10-11

Test 3 - Chapters 15-16                                   Test 6 - Chapters 19-20

 

MAKE-UP TEST:

 

NO MAKEUP TESTS GIVEN! If you miss a test for whatever reason, the score on the next test will be recorded twice minus 10 points for the missed test. Example: If Test 3 is missed and a score of 82 is made on Test 4, then a grade of 82-10 = 72 will be recorded for Test 3 and a score of 82 is recorded for Test 4. This procedure can be used twice, if another test is missed a zero will be recorded for each test that is missed.

 

CLASS ATTENDANCE AND ABSENCE POLICY:

 

Responsibility for class attendance rests with the student. The instructor MAY drop a student because of absences, which would occur after a student accumulates 9 absences. If the student desires to drop the class, it is the student=s responsibility to submit a drop form to the counseling office on or before the final drop date. IF A STUDENT IS STILL ENROLLED IN THE CLASS AFTER 9 ABSENCES, 1 POINT WILL BE DEDUCTED FROM THE STUDENT=S  FINAL NUMERICAL GRADE FOR EACH ABSENCE, STARTING WITH THE 10TH ABSENCE.

 

FOOD AND CHILDREN IN THE CLASSROOM:

 

DO NOT bring food, drinks, or children to class.  If you don=t have a baby sitter, stay home with your children. Children should not be left unattended in the building while you are in class.

 

OUT-OF-CLASS ASSIGNMENTS:

 

There will be assignments for each chapter. The assignments will have a due date and points will be given for each assignment. There will be 2 or 3 out-of-class assignments for each chapter. There will be a total of 400 points for assignments.

 

FINAL GRADE:

 

The final grade for each student will be determined using the point system. Each major test will be worth 200 points for a total of 1200 points for the 6 major tests. Assignments will be 400 total points. Total possible points will be 1600. Final grade will be determined using the following scale:

 

A = 1432-1600           

B = 1272-1431           

C = 1112-1271           

D = 952-1111             

F = Below 951

 

ASSIGNMENTS:

 

1. Financial Goal Sheet

2. Cash Flow Statement

3. Balance Sheet

4. Income and Expense Statement

5. Budget

6. Brad Brooks - A Continuing Case

7. Stock Market Game

8. Financial Planning Problems from selected chapters.

9. Others as selected.

 

LATE ASSIGNMENTS will receive partial credit. Late means the assignment was not turned in on the due date for whatever reason.