Commerce 4FP3 Personal Finance Winter 2015 Course Outline. Finance and Business Economics DeGroote School of Business McMaster University

Transcription

1 4FP3 - Winter of 10 COURSE OBJECTIVE Commerce 4FP3 Personal Finance Winter 2015 Course Outline Finance and Business Economics DeGroote School of Business McMaster University This course is intended to provide students with the tools and skills needed to make sound financial decisions throughout their lives. Personal financial planning is the process of managing one s money to achieve personal economic satisfaction. This process involves setting realistic goals and organizing financial activities toward the achievement of the goals. It also depends on the increased control of financial affairs by avoiding excessive debt, building up wealth, and managing financial risk INSTRUCTOR AND CONTACT INFORMATION Jordan Fortino, MBA, H. BA Instructor fortij@mcmaster.ca Office: DSB/313 Virtual Office Hours: By appointment Tel: (905) , Ext (as office is used by number of instructors, please do not leave messages) Vince Raso Teaching Assistant rasov@mcmaster.ca Course Website: avenue.mcmaster.ca COURSE ELEMENTS Credit Value: 3 Leadership: No IT skills: No Global view: Yes Avenue: Yes Ethics: Yes Numeracy: Yes Written skills: Yes Participation: Yes Innovation: No Group work: Yes Oral skills: Yes Evidence-based: Yes Experiential: Yes Final Exam: Yes Guest speaker(s): Yes

2 4FP3 - Winter of 10 COURSE DESCRIPTION This course is delivered in an online format-using Avenue to Learn as the principal mode of learning. Topics are explored through readings, problem assignments, case studies, videos and online discussions. Students are expected to read the assigned course material, analyze information, and share their new knowledge and understanding with their fellow peers. Interactions in this course will be virtual by nature; students will interact online with other students, TA s and the course instructor. Typically, discussions will occur both in real times via live lectures or asynchronously via discussion groups. The instructor and students will also maintain regular contact by (fortij@mcmaster.ca) - this is preferable versus the A2L service. LEARNING OUTCOMES Upon completion of this course, students will be able to: Demonstrate a rigorous foundation of personal financial planning. Use the basic tools for financial planning. Measure and control household finance. Build and manage investments. Plan for unexpected contingencies. Measure and evaluate financial performance; Prepare a cash budget. Recognize the benefits of buying & and selling real estate. REQUIRED COURSE MATERIALS AND READINGS Avenue registration for course content, readings and case materials Personal Finance, Canadian Ed, Kapoor, Drabay, Hughes, Ahmad, Fortino 6 th edition. $ FREE $89.95 EVALUATION A combination of lectures, online activities, discussion and problem solving. Students will be encouraged to think, analyze, evaluate, apply and problem-solve, and not merely memorize. Students are expected to be prepared for each week of lectures i.e., to have read the assigned reading and to have done the assigned problems. Your final grade will be calculated as follows:

3 4FP3 - Winter of 10 Components and Weights Completion of Weekly Readings (Individual) 10% Problem Sets (Individual) 10% 2 mini-case assignments (Group) 20% Discussion Forum Participation 5% Personal Finance Plan (Individual) 20% Final Exam 35% Total 100% Notes: I. Completion of Weekly Readings: All students are expected to participate in the online reading and activities that coordinate with each chapter from the course textbook. The textbooks highly adapted learn smart technology will encourage students to meet the course learning objectives. Weekly readings will range from minutes depending on students grasp of material. The 10% will be calculated solely on the students completion of the weekly readings. The use of the textbook s LearnSmart technology enables the instructor to receive a report on each students completion of the assigned readings/activities. If a student completes all of the assigned weekly readings, they will receive the full 10%. II. Weekly Problem Sets: Through the Course Textbook s LearnSmart platform, all students will complete a weekly problem set that contains ~10 questions that related to the learn objectives to each chapter. There are fourteen problem sets assigned, of which the best ten will be selected. III. Mini- Case Write-ups: Students will form groups of three and complete the mini-cases that are posted onto A2L. Cases will be posted two weeks prior to deadline. Cases will be submitted via the drop box on A2L. IV. Discussion Forum Participation: During this course, there will be seven guest expert interview videos for you to watch featuring working professionals in industry who can speak directly to students about what they should consider given their current financial situation and how they can move forward. A question or prompt related to this discussion will be posted within your tutorial group and each student will post a reply and respond to at least one other student s post. Each student must complete this for 5 out of the 7 posted (1% each) V. Personal Financial Plan (PFP): We have developed 8 student specific exercises that will coordinate with the body of our text and relate to your real life personal financial plan. Students will be required to complete each financial statement and submit it for review and feedback. This content is designed to engage students in taking the theory learned in class and applying it to their own personal financial situation. Completion of each PFP assignment is worth 2%. The final two PFP assignments will also include a peer-reviewed component which will be detailed later in the course.

4 4FP3 - Winter of 10 VI. Final Exam: The final examination will be scheduled by the registrar s office during the final examination schedule. The exam will be a closed book examination covering all applicable information presented in the course (text chapters, online lectures, guest lectures, power point presentations, etc.). The format for the exam will consists of multiple choice style questions. Students must pass the final exam to pass the course. Details and reviews will be posted closer to the examination date. NOTE: The use of a McMaster standard calculator is allowed during examinations in this course. See McMaster calculator policy at the following URL: Grade Conversion At the end of the course your overall percentage grade will be converted to your letter grade in accordance with the following conversion scheme. LETTER GRADE PERCENT LETTER GRADE PERCENT A C A C A C B D B D B D F Communication and Feedback Students who are uncomfortable in directly approaching an instructor regarding a course concern may send a confidential to the respective Area Chair (balvers@mcmaster.ca) or the Associate Dean (adbusac@mcmaster.ca). Students who wish to correspond with instructors or TAs directly via must send messages that originate from their official McMaster University account. This protects the confidentiality and sensitivity of information as well as confirms the identity of the student. s regarding course issues should NOT be sent to the Area Administrative Assistants. Instructors are required to provide evaluation feedback for at least 10% of the final grade to students prior to Week #8 in the term. Instructors may conduct an informal course review with students by Week #4 to allow time for modifications in curriculum delivery. Students who wish to have a course component re-evaluated must complete the following form:

5 4FP3 - Winter of 10 In order for the component to be re-read: the component must be worth 10% or more of the final grade in the course students pay a fee of $50 in Gilmour Hall #209 (receipt is then brought to APO) the Area Chair will seek out an independent adjudicator to re-grade the component an adjustment to the grade for the component will be made if a grade change of three points or greater on the 12 point scale (equivalent to 10 marks out of 100) has been suggested by the adjudicator as assigned by the Area Chair if a grade change is made, the student fee will be refunded ACADEMIC DISHONESTY It is the student s responsibility to understand what constitutes academic dishonesty. Please refer to the University Senate Academic Integrity Policy at the following URL: This policy describes the responsibilities, procedures, and guidelines for students and faculty should a case of academic dishonesty arise. Academic dishonesty is defined as to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. Please refer to the policy for a list of examples. The policy also provides faculty with procedures to follow in cases of academic dishonesty as well as general guidelines for penalties. For further information related to the policy, please refer to the Office of Academic Integrity at: REQUESTING RELIEF FOR MISSED ACADEMIC WORK 1. Students may request relief from a regularly scheduled midterm, test, assignment or other course component in the following two ways: a) for absences from classes lasting up to five (5) days; or b) for absences from classes lasting more than five (5) days. a) For absences from classes lasting up to five (5) days Students must use the MSAF (McMaster Student Absence Form). This is an on-line, selfreporting tool, for which submission of medical or other types of supporting documentation is normally not required. Students may use this tool to submit a maximum of one (1) request for relief of missed academic work per term as long as the weighting of the component is worth 29% of the final grade or less. Students must follow up with their course instructors regarding the nature of the relief within two days of submitting the form. Failure to do so may negate the opportunity for relief. It is the prerogative of the instructor of the course to determine the appropriate relief for missed term work in his/her course.

6 4FP3 - Winter of 10 If the value of the component is worth 30% or more, students must report to the APO to discuss their situation and will be required to provide appropriate supporting documentation. b) For absences from classes lasting more than five (5) days Students cannot use the MSAF. They MUST report to the APO to discuss their situation and will be required to provide appropriate supporting documentation. Students who wish to submit more than one request for relief of missed academic work per term cannot use the MSAF. They must report to the APO and discuss their situation with an academic advisor. They will be required to provide supporting documentation and meet with the Director. The MSAF cannot be used during any final examination period. Students unable to write a mid-term at the posted exam time due to the following reasons: religious; work-related (for part-time students only); representing university at an academic or varsity athletic event; conflicts between two overlapping scheduled mid-term exams; or other extenuating circumstances, have the option of applying for special exam arrangements. Please see the DeGroote Missed Course Work Policy for a list of conflicts that qualify for academic accommodation ( Such requests must be made to the Academic Programs Office at least ten (10) working days before the scheduled exam along with acceptable documentation. Instructors cannot themselves allow students to unofficially write make-up exams/tests. Adjudication of the request must be handled by the Academic Programs Office. If a mid-term exam is missed without a valid reason, students will receive a grade of zero (0) for that component. STUDENT ACCESSIBILITY SERVICES Student Accessibility Services (SAS) offers various support services for students with disabilities. Students are required to inform SAS of accommodation needs for course work at the outset of term. Students must forward a copy of such SAS accommodation to the instructor normally, within the first three (3) weeks of classes by setting up an appointment with the instructor. If a student with a disability chooses NOT to take advantage of an SAS accommodation and chooses to sit for a regular exam, a petition for relief may not be filed after the examination is complete. The SAS website is:

7 4FP3 - Winter of 10 POTENTIAL MODIFICATIONS TO THE COURSE The instructor and university reserve the right to modify elements of the course during the term. The university may change the dates and deadlines for any or all courses in extreme circumstances. If either type of modification becomes necessary, reasonable notice and communication with the students will be given with explanation and the opportunity to comment on changes. It is the responsibility of the student to check their McMaster and course websites weekly during the term and to note any changes.

8 4FP3 Winter of 9 COMMERCE 4FP3 PERSONAL FINANCE Winter 2015 Course Schedule WEEK DATE CHAPTERS Planning Your Personal Finances Jan 5 Introduction to course Chapter 1 Personal Financial Planning Video: Kevin O Hearn from McGraw Hill : Introduction to the course textbook and LearnSmart technology Link: 2 Jan 12 Chapter 1 (continued) Time Value of Money Complete practice problems assigned. Assigned Problems: Chapter 1 3 Jan 19 Chapter 2 Money Management Strategy Assigned Problems: Chapter 2 PFP: Your Personal Cash Budget Managing Your Personal Finances 4 Jan 26 Chapter 3 Planning Tax Strategy Assigned Problems: Chapter 3 Interview: Vince Raso, KPMG. Assigned Problems: Chapter Feb 2 Feb 9 Chapter 4 Banking Services of Financial Institutions Chapter 5 Introduction to Consumer Credit Assigned Problems: Chapter 4 and 5 PFP: Your Consumer Credit Report Interview: James Lefabre, First Ontario Credit Union. Chapter 6 Choosing a Source of Credit Mini-Case 1 Due Assigned Problems: Chapter 6 PFP: Managing Your Debt 7 Feb 16 Mid-term Recess Insuring Your Assets

9 4FP3 Winter of 9 WEEK DATE CHAPTERS Chapter 7 The Finances of a House 8 Feb 23 Assigned Problems: Chapter 7 Interview: Derek Doyle, Broker of Record Ambitious Realty. PFP: Cost of Rent vs Own (Your Home) 9 Mar 2 Chapter 8 Home and Automobile Insurance Assigned Problems: Chapter 8 PFP: Lease vs. Own (Auto) & Cash vs. Credit Purchase Investing Your Financial Resources 10 Mar 9 Chapter 9 Life, Health, and Disability Insurance Assigned Problems: Chapter 9 PFP: Health and Life Insurance (Optional) Interview: Martin Maretzki, RHU President 11 Mar Mar 23 Controlling Your Financial Future 13 Mar 30 Chapter 10 Investing Your Financial Resources Assigned Problems: Chapter 10 Interview: Anthony Quattrociocchi, Yoke Group. PFP: Your Investment Objectives Chapter 11 Investing Stocks Chapter 12 Investing in Bonds Assigned Problems: Chapter 11 & Chapter 12 Interview: Marlena Zabielska, Sionna Investment Managers PFP: Evaluating Stock Investments (Peer Reviewed) Chapter 13 Investing in Mutual Funds Assigned Problems: Chapter 13 Mini Case 2 Due 14 April 6 Chapter 14 Retirement Planning Assigned Problems: Chapter 14 PFP: Your Retirement Plan (Peer Reviewed) Final Exam: April Additional readings/activities may be assigned at any time