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Financial Counseling & Consumer Credit

Unit 4 Project

Learning Goals:

Use financial counseling strategies to explain one's financial health

Help clients understand their options of increasing income and reducing expenses

Section I: Explaining Financial Health

Walk your client step by step on how to set up a cash flow statement, balance sheet, and a budget. Items to include in your explanation, what are the components that make up the financial statements, what are they looking at (past, present, future), what are the outcomes?

Remember, this is the first time your client is learning about financial statements. It is essential to break this down to as many steps as possible try to refrain from using advanced terms/jargon!

Cash Flow Statement

Balance Sheet

Budget

The financial data will be attached to the project in Blackboard to complete the ratios.

Show Work: Show your calculation inputs and answer. Be specific on what you selected to calculate the ratios.

Ratio Explanation: Explain the ratio outcomes and discuss the result in comparison to the recommended benchmark. think about how you would interpret this to the client. Type out exactly how you would say it to them.

Ratio

Show Work

Ratio Explanation

Living Expenses Covered Ratio

Debt Ratio

Debt Service to Income Ratio

Savings Ratio

Investment Assets to Total Assets Ratio

Based on the outcome of the client's financial statements and ratios:

Framing Strategy: Select one financial counseling framing strategy, and explain how you would work with the client to improve their financial health.

Intervention Strategy: Select one financial counseling intervention strategy, and explain how you would work with the client to improve their financial health.

Financial Counseling

Strategy Explanation

Framing Strategy

Intervention Strategy

Section II: Client Application

Client Scenario

Select resources (organizations from the Unit readings) that would help with reducing expenses and increasing income. Along with any tools that can help with keeping track of money. Explain the resources and tools as if you were responding to the client.

Client: Susan

"I currently don't have a checking or savings account. I had a bad experience with banking once. So, every pay period I stand in line at the grocery store and cash my check. Typically, after I cash my check in February, I walk across the aisle and have my taxes prepared. That month, I take a hit on my financials, with only making $40,000 a year, it cost me about $200 to have someone prepare my taxes, in addition to the $35 that is taken out to have my check cashed. On the plus side, the Tax Preparer always says I receive the Earned Income Tax Credit, but I do not know what that means - it does helps pay for some of my debt payments in March".

Client: Leon

"August is right around the corner. Each year this is where I get set back financially. It is the time of year where I need to purchase back to school supplies for my kids. They are age 7 and 13 which they are required to wear uniforms. That can be so expensive. That first couple of months, until I get my holiday bonus, is a struggle with getting groceries and making sure they have lunch for school. This explains why my credit card debt is so high. I don't even know where to start in getting organized to track my debt".

Please see the Rubric for Grading Details

Each project will be submitted through SafeAssign by the PFI instructor or teaching assistant.

All Unit Projects are to be completed on an individual basis. Please see the syllabus for the outcome of collaborating with classmates or not citing correctly.

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