Posted: December 16th, 2022

Financial Counseling English (US) In Progress

Financial Counseling English (US) In Progress
FCS 3520 CASE STUDY: HOUSE

Case Study Writing Assignment: 30 pts total. Due Friday Dec 16th at midnight

Throughout the semester we focused on counseling strategies and issues that clients typically face with their personal finances. Using this knowledge gained from your readings in both books, write a paper about a client named Susan that incorporates:

• Budgeting and Financial Statements

• Financial counseling theories

• How people make decisions

• Behavioral interventions and behavioral disorders

• Prioritizing debt

• Student loans and credit (cards, reports, scores)

• Foreclosure – Mortgage workout plans

• Bankruptcy

You are expected to adhere to the Assessment Criteria Rubric to Evaluate Writing and follow APA guidelines. See the syllabus for more details.

CASE STUDY DETAILS

Susan age 36 (DOB: 4/7/86)

Children:

Tina age 8 (DOB: 8/27/14)

Jeffrey age 2 (DOB: 4/14/20)

Susan is a single mom whose husband, Jack, deserted her after she got pregnant with Jeffrey. She has not seen or heard from him since, and therefore receives no type of child support. Susan recently learned that Jack is still single, living in American Fork, and earns $30,000 per year.

Susan’s parents, who live close by, help her out a little bit now and then, but they aren’t doing well financially either. She explored the idea of moving in with her parents, but they don’t have enough room. In addition, Susan’s mother is chronically ill, so they cannot take care of the kids for her. She has come to you has shared her budget. She also has some goals she would like to achieve, which are listed in order of importance below.

Susan has the following assets:

• 2000 Ford Escort – Appraised value: $1,734

• Home – Appraised value $88,000

• Savings account: $50

• Furniture, clothing, etc. – $1,000

Susan has the following debts:

• Home – $82,000

• Credit card – $2,200

• Student Loans –$16,000

Susan’s monthly budget

Income: $1,824/month

Expenses:

• $140 Payroll taxes

• $30 Federal tax withholding

• $20 Utah tax withholding

• $125 Medical insurance

• $183 Tithing/Charity

• $570 Mortgage

• $120 Utilities (water, gas & electric)

• $300 Daycare

• $45 Credit card

• $184 Student Loan

• $250 Food

• $80 Auto insurance

• $75 Gas

• $50 Household and personal care

Total expenses: $2,172

Major Issues:

• 2 months behind on credit card; continues to charge things to credit card because she can’t seem to make ends meet

• 1 month behind on student loan

• 2 months behind on mortgage

• She is depressed due to her present situation and at times seems unmotivated to help herself

Goals:

After getting caught up on all past due bills Susan wants to:

1. Establish a starter emergency fund of $1,000

2. Go back to school

3. Start saving for kid’s college

4. Start saving for retirement

CASE STUDY WRITE-UP

Part One: Financial Statements. Prepare a budget or spending plan.

Part Two: Resources available for Susan to increase her income and/or decrease her expenses. Research and find at least ten options for Susan to increase her income and/or decrease her expenses. Several ideas for resources are included in your PPts. Each resource needs to include the name of the organization, a paragraph about the services they offer (written by you – not copied and pasted from their website), local contact information and eligibility guidelines. Discuss how much Susan could receive from each resource. Include edited (cropped so only the relevant information is shown – not the borders on your computer) screenshots of any calculations.

Part Three: PowerPay. Utilize the PowerPay website to determine how long it will take Susan to pay off her debt without and with Power Payments. Run scenarios where she adds $100 per month to her debt as an extra payment starting October of 2017 and a $1,000 tax return in February of 2018. Include edited screenshots as part of your assignment. As part of the assignment also include a write-up with explanations of the calculations included.

Part Four: Student Loans. Utilizing the calculator on StudentAid.ed.gov determine all the repayment options Susan is eligible for. Include an edited screenshot of the payment plans. In a one-page paper explain which option would be best for her currently, how she can rehabilitate her loan, and what will happen to her loan when she returns to school.

Part Five: Foreclosure. Write up what foreclosure is and why Susan needs to avoid it if possible. Select the work-out option that you feel would be best for her and walk Susan through the process of how to prepare for a mortgage workout meeting with her lender.

Part Six: As a clinician, you want to help Susan meet her goals. Address the following areas that Susan would like to save for. Use calculators from PowerPay or find one online.

• Emergency fund

o How quickly can Susan achieve this goal – layout how much she will save to achieve this goal and when she will complete it.

• Retirement

o Assume she will work at Wal-mart until she graduates (at this point assume 100% vesting of employer match). Run calculations for how much Susan can save between now and graduation, assuming 8% interest, and how much she will have at age 65 if she rolls this over to an IRA (again assume 8% interest) when she terminates her employment with Wal-mart. Show your calculations.

o Look up retirement information for Susan as a Public School Teacher (Susan will qualify for Tier 2 Public Employees’ Retirement System). Assume she chooses the 401(k) option. Using average salaries for elementary school teachers in Utah calculate how much Susan will have in her 401(k) assuming an 8% interest rate at age 65. Show your calculations.

• Children’s college

o Discuss the best option for Susan to save $10,000 for each child for college. Calculate how much Susan needs to save each month to save for each child. Show your calculations.

• Going back to school

o Look up and include a table showing tuition costs for Susan’s remaining credits. Discuss the importance of filling out the FAFSA. Determine how much Susan would qualify for in Pell Grants using the FAFSA4caster.

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