ALLIED FIN202 MODULE 2 HOMEWORK ASSIGNMENT

Welcome to the Module 2 Homework Assignment for FIN 202: Personal Finance.This section prepares you to complete this assignment successfully. Please follow these instructions to complete and submit this assignment.You will create a document in either a .doc or .rtf format to record and save your work. If you have never created documents in an .rtf format, please visit the Academic Resource Center and click on Tutorials. You will then see a list of tutorials on the following page. Click on RTF Tutorial.Read the instructions carefully and review your work before you submit your assignment.Include a title page with this assignment. Your title page should follow standard APA formatting. Please view the .allied.edu/Pages/ViewPage.aspx?GroupID=189″>Title Page Example.When you are ready to submit the assignment, click the Start button at the bottom of the page to access the submission page and follow the instructions.

PART I
Directions:
Using Microsoft® Word to save and submit your work, please provide
detailed and elaborate responses to the following questions. Your responses should include examples from
the reading assignments.

1.
What are the main components of a personal
balance sheet and a cash flow statement?
What is the main purpose of each of these personal financial statements?
2.
Diane Rossiter lives with her two sons,
ages 6 and 9. They have had difficulty
managing their finances. What purpose
could a budget serve for the Rossiters?
What actions would you suggest for the budgeting process to be
successful?
3.
Darlene Elkin has the following
financial amounts: checking accounts $850, savings account $3,500, credit card
balance $300, jewelry $1,600, real estate valued at $78,000, a mortgage on the
real estate of $23,000. What is the
total of Darlene’s assets? What actions
could she take to increase her net worth?
4.
Evan Nolan is a college graduate who has
just landed a great job. He feels it is
time for him to start saving a portion of his earnings. What factors would you recommend he consider
when evaluating and comparing different savings plans?
5.
You are planning to purchase a house in
five years and intend to save a fixed amount of money each month for a down
payment. How will you invest your
savings and what are important considerations in selecting an investment
vehicle
6.
Brad Kellogg maintains a monthly balance
in his checking account of approximately $150, writes about 25 checks a month,
and makes three deposits each month. How
would Brad decide which one of the following checking accounts he should
use? Bank A: regular checking account with a monthly fee of $4.50 for an
unlimited number of checks, no monthly balance requirement, and no interest
earnings; Bank B: interest-bearing
checking account paying 4 percent interest on balances over $300 and a monthly
service charge of $6 if the balance falls below $300; Bank C: special checking account that charges 35 cents a check and
20 cents for each deposit, no interest earnings; or Bank D: minimum-balance account that requires a $200 minimum
balance to avoid the $10 monthly fee, two percent interest paid if the balance
remains above $400.
7.
What types of financial records and
documents should be kept in a safe deposit box?
8.
Explain why opportunity cost is an
important concept in money management.
9.
What are the main types of financial
institutions used by consumers?
10. Josh
earned $120 on $1500 invested in a high-yield money market account. He is taxed at 28% of his earnings. What is the effective yield on his
investment?
Part
II
Money
Management Activities (p. 103)

Directions:Write
a 1-page, double-spaced paper in 12 pt. font answering the following
questions. Please use APA format.

1. Since a budget is made up of
fixed expenses and variable expenses, identify which of Shelby’s expenses fall
into each category. Then total each
category and compare it to her monthly income to determine if she has a surplus
or deficit.
2. Based on the information above,
how much should Shelby have in an emergency fund? What steps should she take to reach this
amount?
3. Describe how Shelby might use the
following Personal Financial Planner sheets for assessing her financial
condition (Creating a Personal Balance Sheet, Creating a Personal Cash Flow
Statement, and Developing a Personal Budget).