Case Study of the Week: Investing Money at a Bank

October 11, 2021

Financial Services

You are to assume the roles of the investment manager and investment specialist at Cross Town Bank. You will be meeting with a customer to discuss options for investing in order to earn a return.

The bank customer has $500,000 in a non-interest-bearing checking account at the bank. The customer is interested in learning about investment options that will allow a return on the money.

The customer is 42 years old, owns a technology business, and is married with three kids ages 10, 15 and 18. The customer is also the caregiver to an 88-year old parent. The customer owns a home and a vacation home.

The customer is relatively risk-adverse and is preparing for the oldest child to go to college. The customer earns $30,000 net a month and has expenses of $20,000 per month.

You must prepare a presentation to review options for the customer. The presentation must include savings accounts, certificates of deposit, mutual funds, bonds and stocks. For each investment, you must provide a definition and discuss the benefits and risks. Based on what you know about the customer you must also provide a recommendation as to how to invest the $500,000 currently in the checking account.

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
Set financial goals
Explain types of investments
Explain the need to save and invest