“35 Project”

 

For the “35 project”, each student is to prepare a financial planning document that contains a budget based on a gross salary of $35,000.00 per year.  The project calls for the following assumptions:

• Your current age
• 3% raises each year and an increase in pay of $5,000 in salary once Bachelor’s degree is completed
• College tuition, books coverage by company up to $3,000 annually
• 15% tax bracket until you make over $37, 450; after that 25% tax bracket
• Annual bonuses of 5% of previous year’s salary (paid out in January)

(Tip: Bonus is not taxable for this exercise)

• 6 months of expenses in savings a.s.a.p.
• Buy a house by age 35 (what must you consider?)
• Buy a new (to you) car by age 25 (what must you consider?)
• No children but considering it (if you have children, consider it
• Start saving for your retirement shortly by investing in company 401k or IRA
• What is your savings plan?
• What is your investment plan? What types of investments do you have? Why?
• How much risk are you comfortable with? Why?

 

 

Purpose:

 

The “35 Project” is to provide you with the opportunity to display the following skills:

 

• Fiscal discipline
• Critical thinking and decision making
• Research/ info. gathering
• Critical thinking

 

The project simulates financial situations that you will encounter when you enter into the “real” world.

 

Topics covered:        budgeting, financial planning, investment strategy, risk analysis, portfolio management, and goal setting

 

Requirements:

 

Each student will:

• demonstrate knowledge of money management principles
• working knowledge of excel
• plan for financial goals
• make investment choices
• demonstrate working knowledge of investment markets, and basic investing concepts,
• Respond to a given scenario by determining problem, hypothesizing solution, and making recommendations.

 

 

 

 

Format:

 

Project should be 6 or more pages long and include the following elements:

 

1. Budget in excel with (at a minimum, with expected dollar amounts) the following expense items: housing (FL or GA), travel, food, utilities, dry-cleaning, social spending (weekends) and a reserve (“emergency”) fund
2. Discussion and explanation of possible investment choices and strategies
3. Written justification and pie chart showing chosen allocation (as percentages) of investments (stocks, bonds, savings, funds, etc)
4. Explanation of how selected investment strategy gets them to the stated goal of house and car purchases (include projected dollar amounts)
5. Conclusion (summarize plan and how it meets goals)
6. Images of property and vehicle you plan to purchase along with numbers that support your plan

 

 

 

Outcome:

 

This project will serve you in a variety of ways: first, it is practice for you to effectively budget and plan (with confidence!).  Second, the project creates an opportunity for you to combine all of the concepts and apply them in a way that simulates what you will need to do in the “real world.  Third, it allows you the opportunity to practice making decisions about your financial future!

 

If you have any additional questions please do not hesitate to ask!

 

 

 

 “35 Project”

 

For the “35 project”, each student is to prepare a financial planning document that contains a budget based on a gross salary of $35,000.00 per year.  The project calls for the following assumptions:

• Your current age
• 3% raises each year and an increase in pay of $5,000 in salary once Bachelor’s degree is completed
• College tuition, books coverage by company up to $3,000 annually
• 15% tax bracket until you make over $37, 450; after that 25% tax bracket
• Annual bonuses of 5% of previous year’s salary (paid out in January)

(Tip: Bonus is not taxable for this exercise)

• 6 months of expenses in savings a.s.a.p.
• Buy a house by age 35 (what must you consider?)
• Buy a new (to you) car by age 25 (what must you consider?)
• No children but considering it (if you have children, consider it
• Start saving for your retirement shortly by investing in company 401k or IRA
• What is your savings plan?
• What is your investment plan? What types of investments do you have? Why?
• How much risk are you comfortable with? Why?

 

 

Purpose:

 

The “35 Project” is to provide you with the opportunity to display the following skills:

 

• Fiscal discipline
• Critical thinking and decision making
• Research/ info. gathering
• Critical thinking

 

The project simulates financial situations that you will encounter when you enter into the “real” world.

 

Topics covered:        budgeting, financial planning, investment strategy, risk analysis, portfolio management, and goal setting

 

Requirements:

 

Each student will:

• demonstrate knowledge of money management principles
• working knowledge of excel
• plan for financial goals
• make investment choices
• demonstrate working knowledge of investment markets, and basic investing concepts,
• Respond to a given scenario by determining problem, hypothesizing solution, and making recommendations.

 

 

 

 

Format:

 

Project should be 6 or more pages long and include the following elements:

 

1. Budget in excel with (at a minimum, with expected dollar amounts) the following expense items: housing (FL or GA), travel, food, utilities, dry-cleaning, social spending (weekends) and a reserve (“emergency”) fund
2. Discussion and explanation of possible investment choices and strategies
3. Written justification and pie chart showing chosen allocation (as percentages) of investments (stocks, bonds, savings, funds, etc)
4. Explanation of how selected investment strategy gets them to the stated goal of house and car purchases (include projected dollar amounts)
5. Conclusion (summarize plan and how it meets goals)
6. Images of property and vehicle you plan to purchase along with numbers that support your plan

 

 

 

Outcome:

 

This project will serve you in a variety of ways: first, it is practice for you to effectively budget and plan (with confidence!).  Second, the project creates an opportunity for you to combine all of the concepts and apply them in a way that simulates what you will need to do in the “real world.  Third, it allows you the opportunity to practice making decisions about your financial future!

 

If you have any additional questions please do not hesitate to ask!