Financial Planning – Case Studies
• Why is Financial Planning important to everyone?
Why case studies?
Identifying specific areas for which planning expertise are needed. Explaining financial planning as a method to help people reach their goals. Comparing the financial needs of different individuals. Contrasting the financial needs of different individuals.
Everyone has dreams and wants, but only those with a plan will be able to achieve them. It's one thing to fantasize about a future that might include owning your own business or traveling around the world, attending a good college, or raising a family in your own home. But without some kind of financial plan, achieving those dreams is close to impossible. Nobody plans to live in a small apartment for an entire lifetime, or to stay at the same dead end job, or to have piles of credit-card debts.
But these are the things that happen to people who don't develop a financial plan for themselves and follow it. In this lesson, you will examine case studies representative of the life situations of five people, and will determine which aspects of financial planning are lacking in each case: savings and investment (capital accumulation); life, health, and property insurance (risk management); estate planning; and goals clarification. You will have the opportunity to role-play a financial planner and convince your clients to plan for their financial goals.
By the time I am 45 years old, if I want to view myself as successful, I will have achieved the following: Finish this sentence with at least three goals you wish to achieve. What do you need to do in order to achieve these goals?
Worksheet 5 “Taking Care of Business”
Directions: Compare and contrast these five cases. Decide who is in the best position financially and who is in the worst. Compare the five and rank them 1 -5 with 1 being in the best financial position and 5 being in the worst.
How could a financial plan help these people improve their situations?
Five groups. Each group is has one case study from Worksheet 1. Students read and follow directions on Worksheet 2, and come to a group decision on improvements recommended for their assigned case study. Each group writes its conclusions in a two-tothree paragraph letter to its assigned case, explaining how that client can improve his or her financial situation. A representative from each group reads the letter to the class. Students in other groups may question the results.
Do you agree or disagree with this statement:
Only rich people need a financial plan.