Bakersfield College Department of Management & Information Technology Personal Finance BSAD B40 Instrucr: Professor: Murad A. Zikri, Ph.D. Department of Management & Information Technology Office B-6 1801 Panorama Drive Bakersfield, CA 93305 Phone: (661) 395-4088 E. Mail : MZikri@bakersfieldcollege.edu Reference: Personal Finance, 8 th. Or 9 th Edition, Kapoor, Dlabay, Hughes, Richard D. McGraw Hill Irwin 2004. ISBN 13: 978-0-07-310671-7 ISBN: 0-07-310671-2 Course Description: Recommended Supplements: Wall Street Journal (daily), Los Angeles Times, CNN, Financial News, Financial Times, Week, Forbes, and any other references. Principles and skills of budgeting, making intelligent consumer choices related consumer credit, banking services, insurance, taxes, transportation, investing for personal retirement, and real estate planning. Recommended: MATH BA, English Level 5, Reading Level 5 or 6. Hours: 54 lectures CCS: Occupational Education. Transferable: CSU and private colleges. BC GE 3b. Formerly BUS B40 Course Rationale : Personal Finance BUS B40 serves as a survey course designed introduce basic financial planning, investment alternative concepts that form the successful business and personal practice. The basics in personal financial planning are best viewed as essential stepping-snes greater understanding of the different alternatives of personal and business investment alternatives and rate of returns in the highlights of the changing variables in the financial world. We will implement several personal financial plans, investment portfolio analysis and elaborate on particular investments that serve the purpose of the class as needed. Methods Of Instruction: Lecture, discussion, videos, guest speakers, internet research, demonstrations, writing assignments, exams. Description of Out-Of-Class Assignments: Weekly reading, problems, case studies, projects, research assignments. Important Dates for the Fall 2008 session: Aug. 25 : Instruction Begins Sep. 1: Labor Day Holiday Sep. 5: Last day for refunds for semester length classes Sep. 5: Last day add semester length classes with approved add form Sep. 22: Last day drop from semester length classes without receiving W grades Nov. 3: Last day file for graduation Nov. 3: Last day withdraw from semester length classes and receive W grades Nov. 11: Veterans Day Holiday Nov. 26: Classes starting at 5:30 p.m. and after will not be held Nov. 27 - Nov. 28 : Thanksgiving Holidays Dec. 8 - Dec. 12: Final Examinations Dec. 12: End of Fall Semester 1
Student Learning Outcomes & Methods of Evaluation/ Assessment: Student Learning Outcome: Methods of Evaluation/Assessment: Upon successful completion of this course the student will be able : Read assigned chapter; bring a or Make a basic personal financial plan for themselves and people in various phases of their life cycle. Finance article class. Prepare a personal budget, evaluation of financial options, calculate income from employment and compare essential expenses. Read assigned chapter, bring a contemporary Modify common financial statements a personal basis and use them make financial decisions. or Finance article class, and prepare a detailed Financial Statement based on the theory and application from the reference. Present some of your suggestions balance your income vs. expense ratios. Read assigned chapter; bring a contemporary Evaluate the environment of personal financial planning, regarding taxation, economics and government policy. or Finance article class, (Case Study) discussion in groups and examination of personal financial planning issues. Find out your tax obligations and determine your income after tax exercise. Read assigned chapter, bring a contemporary Explore cash management techniques. or Finance article class, Start a Weekly Budget plan and bring class your written assignment. Discuss and explore different methods of cash management techniques. 2
Read assigned chapter, bring a contemporary or Finance article class, and check your Explain credit management. credit report on line from Three Credit Bureau. Bring class a complete report with all the personal information omitted and blocked. Class discussion on findings and difficulties are encouraged without violation of privacy rights. Read assigned chapter, bring a contemporary Make informed decisions about home and au purchases. or Finance article class. Assignments will include comprehensive analysis of real estate market in your area and discussion of au purchase techniques and financing for both. Read assigned chapter, bring a contemporary Develop a personal risk management plan. or Finance article class. Evaluate risk and reward essay. Present an update plan of risk management. Assignments will include comprehensive analysis of Credit Report, Life & Disability Insurances. Read assigned chapter; Bring a contemporary or Finance class. Start a balanced Develop a personal investment plan. portfolio of Scks. Bring three different scks class and present your analysis in terms of P/E ratios, valuation and potential loss or gain. Extra assignment might be followed based on class performance and profitability. 3
Read assigned chapter, Bring a contemporary or Finance article class. Calculate and Engage in effective, preliminary retirement planning. estimate Retirement Funds needed based on current valuation, investment returns, inflation and other variables. Present an outline for your personal retirement plan. Read assigned chapter, Bring a contemporary Engage in effective, preliminary estate planning. or Finance article class. Evaluate and present a hypothetical estate plan including but not limited transfer of liquid assets, real estate, collectable, and give a brief presentation on the impact of taxation on your estate plan. Detailed Course Content /Outlines Approximate Weekly Assignment Plan I. Personal Financial Planning: Your Starting Point [ Week 1] 1. Taking Charge of Your Finances 2. Objectives of Personal Financial Planning 3. The Five Stages of Financial Planning 4. Life Stages in Personal Financial Planning and Management 5. External Environment for Personal Financial Decisions 6. Assistance with Your Personal Financial Plan 7. Personal Computers in Financial Planning II. Financial and Personal Records [ Week 2] 1. Setting up Your Records 2. Maintaining Your Records 3. Safeguarding Your Records III. Developing Financial Goals and Integrating Them in [ Week 2 ] Your Budget 1. Developing Your Financial Goals 2. Purpose of a Budget 3. Budgeting: The Preliminaries 4. Tailor Your Budget Your Needs 5. Preparing Your Budget on a Personal Computer IV. Payment Services: Using Them Effectively [ Week 3 ] 1. Major Financial Institutions that Offer Payment Services 2. Payment Accounts 3. Benefits of a "Checking" Account 4. Principal Types of Payment Accounts 4
5. Selecting Your Payment Account 6. Using the Account 7. Reconciling Your Payment Account V. How "Manage" Your Income Taxes [ Week 3] 1. Income Taxes: A Subject You Need Know 2. Basic Income Tax Structure 3. Gross Income 4. Adjustments Gross Income 5. Deductions from Adjusted Gross Income 6. Exemptions 7. Filing Status 8. Methods Used Compute Income Taxes 9. Tax Credits 10. Payment of Taxes 11. Filing Your Tax Return 12. Marginal Tax Rate 13. Are Income Taxes Progressive? 14. Tax Planning for Personal Financial Decisions 15. An Audit by the IRS VI. Credit: How Get It and How Use It [ Week 4] 1. How Credit Operates 2. Using Credit 3. Qualifying for Credit 4. Applying for Credit 5. Setting Your Debt Limits 6. Cost of Credit 7. Estimating Monthly Payments 8. Finance Charge: Credit Card Accounts 9. Overextended with Credit VII. Sources of Consumer Credit [ Week 4] 1. Consumer Cash Loan 2. Finance Charges: Fixed or Variable Rate? 3. Major Sources of Consumer Cash Loans 4. Consumer Cash Loan through Merchant or Dealer 5. Credit Life Insurance on Consumer Loans 6. Disability Insurance 7. Open-end Consumer Credit VIII. Major Consumer Purchases: Aumobiles and Appliances [ Week 5 ] 1. Classifying Aumobile Models 2. Cost of Aumobile Ownership 3. Facrs that Can Effect Your Total Costs 4. Estimating Your Total Costs 5. Shopping for Your Aumobile 6. Car Warranties 7. Leasing: An Alternative Purchasing 8. Selecting Major Home Appliances 9. Service on Home Appliances 10. Cost of Operating Appliances 11. Purchase Price of Appliances 12. Design and Operating Features 13. Paying for that New Appliance 14. Shopping for an Appliance IX. The Housing Decision [ Week 6] 1. The Housing Alternatives: Rental or Ownership 2. The Basic Decision: Rent or Buy 5
3. Rent or Buy: It's Your Decision 4. Selecting A Rental Unit 5. Buying the Right Home 6. Financing Your Home 7. Major Types of Currently Available Mortgages 8. Land Contract: An Alternative a Mortgage 9. Selecting the Right Mortgage 10. Legal Aspects of the Actual Purchase 11. Ownership: An Investment or a Shelter? IX. Risk Management, Insurance, and Social Security [ Week 7] 1. Personal Risk Management [Mid Term Exam] 2. Insurance: Reimbursement for Your Losses 3. Managing Your Insurance Program 4. Social Security: An Integral Part of Insurance Planning XI. Life Insurance 1. How Life Insurance Operates 2. Types of Insurance Contracts 3. Participating and Nonparticipating Policies 4. Major Policy Riders 5. Settlement Options 6. Taxes on Life Insurance Proceeds and Cash Value 7. Determining Your Life Insurance Needs 8. Selecting the Life Insurance You Need 9. Shopping for Life Insurance 10. Selecting an Insurance Agent 11. Common Misunderstandings 12. Special Life Insurance Policies XII. Health Insurance and Disability Income Insurance [ Week 8 ] 1. Health Insurance or an HMO 2. Common Provisions: Health Insurance Policies and HMO Contracts 3. Popular Health Insurance Policies 4. Specialized Health Insurance Policies 5. Dental Insurance 6. Where and How Buy Health Insurance 7. Selecting an HMO 8. Updating Your Health Care Coverage 9. Disability Income Insurance XIII. Property and Liability Insurance [ Week 9 ] 1. Homeowners Insurance 2. Aumobile Insurance 3. Umbrella Liability Policy XIV. Investments: Fundamentals and Developing a Strategy [ Week 10] 1. Some First Steps 2. Two Basic Investment Alternatives: Lending or Ownership 3. Total Return on an Investment 4. Riskiness of an Investment 5. Risk-return Trade-off 6. Diversification Can Reduce Risk 7. Are Financial Markets Efficient or Can You Find a "Free" Investment Lunch? 8. Compound Rate of Return 9. Compound Rate of Return Tables 10. Inflation Affects Your Real Investment Return 11. Criteria for Evaluating Investments 12. Developing Your Own Investment Strategy 6
XV. Fixed Income Investments [ Week 11] 1. Lending Investments from Financial Institutions 2. Certificates of Deposit 3. U.S. Savings Bonds 4. U.S. Treasure Securities 5. Corporate Bonds 6. Municipal Bonds XVI. Investing in Common Sck [ Week 12 ] 1. Common Sck: Ownership in a Corporation 2. The Sck Markets 3. Common Sck: Valuation Measures 4. Common Sck: Risk Measures 5. Common Sck Categories 6. Selecting a Common Sck 7. Buying and Selling Common Scks 8. Common Scks: Are They for You? XVII. Mutual Funds, Annuities, and Other Managed Investments [ Week 13 ] 1. Types of Mutual Funds: Investment Objectives 2. Advantages of Mutual Funds 3. Special Uses of Mutual Funds 4. Information on Mutual Funds 5. Should You Own a Mutual Fund? 6. Annuities 7. Unit Investment Trusts 8. Limited Partnerships XVIII. Planning Your Retirement Years [ Week 14 ] 1. Retirement Planning: Why Start Now? 2. Building Retirement Income 3. Planning Your Retirement 4. Payments from Your Retirement Plan XIX. Planning The Transfer of Your Estate [ Week 15] [ Week 16 Final Examination] 1. Your Will 2. Use of Trusts in Estate Planning 3. Federal Estate Tax Course Obligations & Requirements : 1. Students are responsible for weekly reading assignments. 2. Class attendance is expected, on time; absence without a good reason are not allowed, any absence more than 3 classes are subject student dismissal from the class. 3. No tape recording will be allowed during the class at any time, unless with prior approval & written documentation from Disabled Student Programs and Services Department. 4. Class Participation [20 % of final grade], each student is evaluated on his/ her contribution the learning process. Regular Class Participation and discussion group are expected, opportunities lost due absences may be retrieved through additional research any/ or other assignments at the professor s discretion. 5. Assignments [10 % of final grade] will be given frequently at the end of the class, are expected be complete and turned in on time. Each assignment paper will be evaluated on the depth and appropriateness of business & economic content, comprehension of business concepts, organization, Charts, and style. 7
Assignments & Home work: Students will be expected participate in classroom discussions and in- class activities. Classroom assignments, exercises, problems, case studies and home work will be assigned at the end of every class, and expected be delivered the professor within one week. Outside class assignments may include written reports and Internet research. Students will be required complete readings, quizzes, homework, and examinations as assigned and with professors approvals. 6. Mid Term Exam. [30 % of final grade] will be held in week 7 or 8 (students will be notified ahead of time for preparation and review); To test your knowledge on the information already been taught and prepare the student for the comprehensive final exam. The examination will be combinations of multiple choice questions, short answer questions, and/or essay questions 7. Final Examination, [40 % of final grade] will be held in last week of school - week 16 (students will be notified ahead of time for preparation and review). A comprehensive examination focus on concepts and applications of business terms used during the course. The examination will be a combination of multiple choice questions, short answer questions, and/or essay questions. 8. Students with disabilities: "Students with disabilities who believe they may need accommodations in this class are encouraged contact Disabled Student Programs & Services (661-395-4334), FACE 16, as soon as possible better ensure such accommodations are implemented in a timely fashion. NOTE: Please speak the professor privately after class if you need any assistance. Academic Honesty: You are encouraged work in teams and study groups because most management decisions and business activities are done in teams. You are, however, bound by the College s policy on academic honesty. You are not neither give nor receive assistance such that the work you present is not essentially your own. The highest standards of academic honesty are required and will be strictly enforced. This is particularly applicable in the proper citing of resource material. If the student did not actually collect the data or independently arrive at the idea presented then a proper citation and footnotes must be used. Citations must be used for quoted or paraphrased text and any time you borrow an idea from an author, the instrucr, or your peers. Using someone else s sentence structure and word choice, even if not exactly similar in every respect, warrants quotation and appropriate citation. It is the student s responsibility make sure that their citations and quotation marks unambiguously highlight the ideas, words, sentences, and arguments that they borrow from other sources. Paraphrasing is not simply changing one or two words in a sentence; it reconstructs someone else s idea in your own words. Absences: Absence must be with good cause are subject the Instrucr approval. Completing an additional assignment may make up absences of one hour or more per session. These assignments will be arranged in consultation with the instrucr and will summarize textbook, research paper, discussion material etc. occurring during the absence. They are due at the final course meeting. Examinations that are missed may be made up by professor approval. Makeup examinations are an essay test that covers all the pics plus the missed part of the course. 8
Grading: Final grades will be computed on the following percentages: Final Examination 40 % Mid-Term Exam 30 % Assignments 10 % Class Participation 20 % Grading System: The final grades will be determined from the weighted average of the overall performance during the course: 4.0 A : Excellent. Student displayed exceptional grasp of the material, frequently with evidence of intellectual insight, critical thinking approach and original thought. Ability go beyond the immediate course content apply concepts learned other challenges. 3.0 B : Good Work demonstrated a through grasp of the material with occasional errors and omissions. Assignments were thoroughly and completely done, with careful attention detail and clarity and with evidence of intellectual insight. 2.0 C : Satisfacry The quality of work was acceptable, meeting minimal course standards, but not exceptional. Performance on examinations and other course assignments was satisfacry and demonstrated that the student was keeping up with the material and attending detail. 1.0 D : Pass Less than satisfacry The quality of work was not always satisfacry, but overall was passing. Assigned work was not always done and when done was inadequate. Performance on examinations and other work was generally weak with regard understanding on subject, proper formulation of ideas and thoroughness. 0.0 F : Fail A grade of F indicates that the students failed the course. The quality and quantity of work was not of college level. A failing grade may be assigned for a variety of reasons such as failure complete course requirements as outlined in the syllabus, inability comprehend course material or ineptitude in dealing with it, consistently unsatisfacry performance on examinations and/or assignments or excessive absences. Range of Grades: Grading Scale: 90% 100% A 80% 89 % B 70% 79 % C 60 % 69 % D Below 59 % F Contacting and/or Meeting with Faculty Member Since attendance, academic performance and participation shall be continuously and strictly monired, you must contact and consult with the instrucr before you are going be absent, tardy, or leaving early from class for any reason. 9
The professor will be available for student s consultation, progress reporting, and inquiries during his listed office hours at the college, the professor meets students at his office in the college and during the office hours only please view the office hour s listings on campus. Professor Office hours are listed on his office door; on line, communicated in class at the first session and also attached as an integral part of this syllabus. Syllabus Change: The syllabus, structure, meeting times and classroom location/ procedure may be changed at the instrucr s discretion due current events and/or as class progress may require. The professor reserves the right change any part of this syllabus cusmize it the standard of the class, changes in the program and student performance. Best of Luck Dr. Zikri 10
Professor Murad Zikri Fall 2008 Monday Tuesday Wednesday Thursday ITV Class follow up and meetings 9:35 am - 11:00 am B 5 B 5 Bakersfield Leadership Academy work & meetings 11:10 am- 12:35 pm B 8 Office Hours 3:00 P.M. 4:00 P.M. Office Hours 12:25 P.M. 2:25 P.M. 2:25 P.M. 5:35 P.M. Personal Finance B 8 Office Hours 3:00 P.M. 4:00 P.M. Bakersfield Leadership Academy work & meetings B 4 4: 00 pm 5:25 pm B 5 Office Hours 5:35 P.M. 6:35 P.M. B 5 6:00 pm - 9:10 pm Personal Finance Bakersfield Leadership Academy work & meetings B 7 11