Case Study of the Week: Financial Planning for the Future

November 15, 2021

Financial Services

You are to assume the role of a financial counselor at Ready Financial Planning, a company that provides financial services for members of the community. A client has asked for your help in determining how to best act now to secure a financially sound future.

The client is a 25-year-old that works full time and nets $1,600 each bi-monthly paycheck. That amount includes the $50.00 deducted for medical and dental insurance. Currently, the client does not make any personal contribution to retirement, although the employer does invest a small amount.

The client pays $800.00 each month on rent; with an additional $250.00 spent on utilities, mobile phone service and Wi-Fi. The client has a car payment totaling $350.00 each month and pays $80.00 each month on car insurance. There is still $15,000 owed on the vehicle. The client pays $100 each month on a $15,000 student loan. While the client does have a credit card, any balance is paid off in full each month. The client has a savings account, but it only holds $200.00. Any excess funds are kept in checking.

The client is currently unmarried but is hoping to get married and start a family in the next five years. The client loves to travel and uses extra monies for weekend getaways as often as possible.

You will meet with the client to discuss the client’s current financial status and how to best plan for the future. It is important that you detail the following:

  • Current and possible financial needs
  • The benefits of saving and investing
  • Feasible financial goals
  • The importance of having a budget
  • Reasons to begin retirement planning

Questions?

Randi Bibiano
Competitive Events Specialist
randi@deca.org

As DECA’s competitive events specialist, Randi primarily authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also serves as DECA’s liaison for the Virtual Business Challenge and Stock Market Game. Randi assists with the recruitment of judges for both the high school and collegiate International Career Development Conferences. Randi has worked for DECA since 1998.

Discussion Questions

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Classroom Connection

Career CLuster:

Finance

Instructional Area(s):

Financial Analysis

Performance Indicators:

Explain the nature of financial needs
Explain the need to save and invest
Explain types of investments
Discuss the nature of retirement planning