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FIN 230

I.  TITLE: Personal Financial Planning

II.  CATALOGUE DESCRIPTION:
Credit Hours (3).  The course prepares the student to manage his or her own personal financial affairs in a competent manner as well as providing a foundation for later study and work in the financial planning field.  Designed to meet the needs of both business and non-business majors.  Prerequisites: none.

III.  PURPOSE:
The purpose of this course is to assist the student in making better personal financial decisions (meaning wise spending and saving choices) to improve his or her standard of living.  This course has a strong practical orientation.  Regardless of a person’s education, race, gender, etc., you cannot escape making financial decisions.  Should you buy or lease that car?  What’s the best kind of credit card to use based on your purchase/repayment methods?  What is the true cost of your mortgage?  Should you refinance your mortgage?  Should you rent?  How do you establish/protect/repair your credit rating?  Will you have enough money upon retirement to live comfortably?  Where should you invest your money?  How will recent tax law changes affect you?  How can I give more money to my church or favorite charity?  These are just some of the questions that almost everybody faces at one time or another, ragardless of their career choice.

Continuous changes in the finacial environment, in technology, and personal changes (such as starting a family, changing jobs, health issues) make personal financial planning both necessary and challenging.  Whetgher we like it or not, the environment in which we live and work has become a complex and global one.  Technology is allowing individuals to make more informed decisions.  There is a wealth of finacial information now available on the web and we can make investments from the comfort of our own homes through the personal computer.  Our consumption and investment opportunities are global now, meaning that our personal wealth and purchasing power are affected by international variables.  A person must be able to arrive at logical decisions in such a complex and dynamic world.  The financial decisions you make today and tomorrow will have long reaching consequences.

The material covered in this course is designed to assist the individual in the personal financial planning process.  This includes the application of financial principles to analyze consumption and spending choices in order to arrive at logical decisions.  The role of technology and its application in the field is also introduced.  The techniques and in formation in this course should allow the student to make informed financial decisions in an increasingly complex world throughout their careers and lives.

IV.  COURSE OBJECTIVES:
1. To instill in the student the importance of the financial planning process.
2. To introduce the students to the methods of analyzing consumption/savings problems.
3. To expose the student to various sources of information (electronic and otherwise) to assist in the financial planning process.
4. To introduce the student to various investment outlets, domestic and global.
5. To introduce the student to the use of technology to assist in making financial decisions and tracking the performance of past decisions.
6. To leave the student with an ability to analyze and evaluate personal financial issues in order to arrive at logical solutions.

V.  CONTENT OUTLINE: (Tentative)
Chapter     Topic
1 Understanding the Financial Planning Process
2 Your Financial Statements and Plans
3 Managing Your Taxes
4 Managing Your Cash and Savings
5 Making Housing and Automobile Decisions
EXAM 1
6 Borrowing
7 Using Consumer Loans
8 Insuring Your Life
9 Insuring Your Health
10 Protecting Your Property
EXAM 2
11 Investing in Stocks and Bonds
12 Making Securities Transactions
13 Investing in Mutual Funds
14 Meeting Retirement Goals
15 Preserving Your Estate
FINAL EXAM

VI.  INSTRUCTIONAL ACTIVITIES:
Instruction will be a combination of lecture and classroom discussion.  Guest speakers from the business community will be brought in to discuss such issues as the importance of keeping a good credit rating, the loan process, etc.  Students will be required to read additional articles from the Wall Street Journal and other publications pertinent to personal financial planning.  Students will be required to obtain information from Web sites and will utilize various software (spreadsheets and/or the software included with the text) to assist in the decision making process.  Students will be required to participate in an investment game sponsored by the Finance and Economics club each year.

VII.  FIELD AND CLINICAL EXPERIENCES: N/A

VII.  RESOURCES:
Textbook, hand-outs, current articles, and a calculator.

IX.  GRADING PROCEDURES:
All grades will be based on points earned as a percentage of possible points.  There will be a strict 10 point grading scale.
  A 90% and above Exceptionally High Quality Work
  B 80%-89.9% Good Work
  C 70-79%  Average
  D 60-69%  Poor
  E Below 60% Failure

There will be three (3) exams, including the final, comprised of a mix of objective and subjective questions and problems.  Essay questions are graded on the basis of three Cs: correctness, clarity, and composition.  Some essay questions will require preliminary computations.  Students may use their own calculators, formula sheets, and/or interest factor tables during quizzes and exams.  Students are not permitted to share materials and calculators or use lap-top computers during exams.  Total points possible for the semester will be between 400 and 500, depending on the number of quizzes, assignments, and homeworks.  Some class time (the period immediately before and after the exam) will be allotted for review of exams.

Audit Credit: To receive a grade of AU for auditing this class, you must complete the homework, take the exams, and have at least a 60% average.  Otherwise you will receive an E.

X.  ATTENDANCE POLICY:
Regular attendance is both expected and necessary for the successful completion of this course.

XI.  ACADEMIC DISHONESTY POLICY:
Please be advised that the College of Business and Public Affairs has adopted a new academic dishonesty policy which is posted in every classroom in the Business Building.  For off-campus students, an academic honesty policy is listed in your catalog.  Cheating will not be tolerated.  If you are observed cheating on an exam or quiz, you will fail the course.  If you turn in work other than your own, you will receive a zero on the assignment.  Ask your instructor if you are in doubt as to whether an action of yours constitues academic dishonesty before engaging in that action.

XII.  TEXT:
Personal Financial Planning, 7th Edition, Lawrence J. Gitman and Michael D. Joehnk.

XIII.  PREREQUISITES:
None

Last updated February 14, 2000. Designed and maintained by Kyosung Koo