This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning.. The copyright holder grants
Trang 1R ESOURCE M ANUAL
Prepared by
Hardeep S Gill
NAIT
Second Canadian Edition
Jeff Madura
Florida Atlantic University
Hardeep S Gill
NAIT
Toronto
Copyright © 2012 Pearson Canada Inc., Toronto, Ontario All rights reserved This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted The copyright holder grants permission to instructors who have adopted Madura, Gill,
Personal Finance, Second Canadian Edition to post this material online only if the use of the website is restricted by
access codes to students in the instructor’s class that is using the textbook and provided the reproduced material bears
this copyright notice
Trang 2Contents
Overview iii
Introduction iv
Chapter 1 Overview of a Financial Plan 1
Chapter 2 Applying Time Value Concepts 10
Chapter 3 Planning with Personal Financial Statements 18
Chapter 4 Using Tax Concepts for Planning 26
Chapter 5 Banking Services and Managing Your Money 39
Chapter 6 Assessing, Managing, and Securing Your Credit 47
Chapter 7 Personal Loans 58
Chapter 8 Purchasing and Financing a Home 66
Chapter 9 Auto and Homeowner’s Insurance 78
Chapter 10 Health and Life Insurance 86
Chapter 11 Investing Fundamentals 100
Chapter 12 Investing in Stocks 111
Chapter 13 Investing in Bonds 123
Chapter 14 Investing in Mutual Funds 134
Chapter 15 Retirement Planning 145
Chapter 16 Estate Planning 157
Chapter 17 Integrating the Components of a Financial Plan 167
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The Instructor’s Solutions and Resource Manual has been prepared to offer instructors course-planning assistance when teaching personal finance It incorporates several teaching aids customized specifically for
Personal Finance, Canadian Edition, Second Edition, by Jeff Madura and Hardeep Gill
The manual includes a brief overview of each chapter along with a list of chapter objectives Answers to both the end-of-chapter review questions and the financial planning problems are included Where possible, details of the calculations for the problems are also included In some instances, answers may be slightly different when using tables, calculators, and/or the student CD-ROM
The manual presents answers for the questions accompanying the two continuing case exercises The Sampsons (on MyFinanceLab) and Brad MacDonald
Each chapter includes numerous teaching tips These tips arose from many years of teaching personal finance principles in the classroom The tips are meant to help instructors promote discussion in the classroom The tips also address some common misconceptions that students sometimes have about personal financial planning
Many thanks go to those at Pearson Canada for their help in preparing and technically checking this manual
Trang 4Introduction
The Instructor’s Solutions and Resource Manual for Personal Finance, Second Canadian Edition, by Jeff
Madura and Hardeep Gill is designed to meet the far-ranging needs of personal finance instructors In most schools, a personal finance course is not a required course and therefore will often attract students from many different backgrounds and colleges who will be taking the course as an elective This subsequently creates a challenging teaching environment Some students may feel overwhelmed by the material, while others may find it too basic Having access to a variety of resources, methods, and materials may alleviate some of these challenges This introduction describes the many resources this instructor’s solutions and resource manual contains We hope it will ease the burden of busy instructors and help them to enhance their students’ ability to retain the material
An Overview of Chapter-by-Chapter Resources
This manual provides instructors with much more than the solutions to the end-of-the-chapter exercises Each chapter begins with an introduction to the chapter This introduction is intended to aid the instructor
by offering a brief summary of the topics that will be covered in that chapter In this way, each instructor should be better able to determine if only a portion of the topics will be sufficient or if the coverage will be comprehensive
In-depth Teaching Suggestions for each chapter include both important topics to be discussed in an individual chapter and additional assignments that may be helpful to aid the students in learning the material Some of the teaching suggestions were created to provide a variety of teaching methods
Educational research shows that using a variety of teaching methods produces the best results Thus, the instructor may choose to implement some of the following methods to vary instruction
Teams: Many of the suggestions are geared toward the implementation of teams (three to five members
on a team) Of course, team make-up depends on several things, including class size, number of hours in the course, and whether the course is online or on-site Students do learn from each other and in a course such as personal finance, many students will have a variety of educational backgrounds and real-world experiences The use of teams allows students to share this knowledge with their peers and has proven to
be very effective
Community Resources: The use of community resources is another way to provide a variety of learning
experiences The following is not a comprehensive list, but simply a few suggestions that may be available
in various locales These professionals will generally be most willing to give a presentation to the class at
no charge The exposure to professionals with careers dealing with personal financial issues in the “real world” has proven to provide an invaluable learning experience for students
Consumer Counseling Service: Credit use and abuse, prevention and management, budgeting
Banks and Credit Unions: Financial services, home buying and credit, chequing, investing
CMHC: housing finance options, mortgage loan insurance, information on the housing market in Canada Insurance Companies: Features of Auto and Property, Health, Disability, Critical Illness, Long-Term
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Internet: There are many Internet assignments in the book and even more suggestions in the Instructor’s
Solutions and Resource Manual The Internet is a source of information that will be available to the students even after the class is finished The information is generally more up to date than any other source and everyone today has at least limited access to a computer
Teaching Personal Finance Online
The unique needs of online courses merit separate mention regarding teaching resources and suggestions Teaching suggestions geared to the needs of online courses are included in the materials corresponding to each chapter What follows are general suggestions to aid the many instructors who are restructuring their individual courses so they can be taught an online course
1 An online course should reflect the same rigour and content as the classroom course demands This ensures that students are exposed to the same content and learning experiences, which will help ensure that the course both meets the prerequisite criteria for upper-level courses and/or transfer Using a common syllabus and textbook will diminish perceptions that the courses are different
2 Teams can also be used in an online course Since many students take courses online because of scheduling conflicts with work, etc., it would be beneficial before assigning teams to survey the students as to the times they are available to work online This would then do some self-selecting for the teams
The cases in the text are useful for team solving Worksheets with discussion questions are also a good way to use teams If the students are self-paced, it is more difficult to implement teams Thus, it is important to know the target audience before implementation
3 Communication is critical in any course and even more so in an online course The address book is a valuable asset for an online course The instructor can send messages to everyone at the same time, or individually Information can be disseminated quickly and efficiently For example, answers to quizzes and exams can be distributed electronically immediately after the deadline assigned for each
4 Chat Rooms: This is another way to communicate with students This can serve as office hours
Students know when the instructor will be online and can participate or not
5 Just as instructors teach differently in the classroom, so also will this happen in an online course Knowing the audience is critical to the success of any class Today, even in a conventional classroom, there is often a mix of traditional and nontraditional students The nontraditional will often have more experience in financial matters It is important, though, to remember that financial expertise is not a matter of intelligence It is a skill that is learned and that is why students enroll in a personal finance course Even though the nontraditional student may have had financial life experiences, it does not mean that he or she had the necessary skills to make the best decisions at the time
6 Assessment instruments may vary in an online course It is virtually impossible to give an exam over the Internet and ensure that it has been completed as directed with no outside help The use of a testing center is one way to alleviate this problem The student would, of course, have to go on campus during
Trang 6the semester to complete the exams This is a problem if the student lives a long distance from the campus and has enrolled in the Internet course specifically because of this predicament The use of a proctor at another institution would be another way to ensure that examinations are secure
7 Being a self-starter is a critical characteristic for a student to be successful in an online course It is helpful to include at least a brief discussion of this in the syllabus During the semester it would be advisable to repeat this message, perhaps by e-mail The student’s success will rely on how responsible and self-motivated he/she is
Hardeep Singh Gill