excel worksheet

formation for Sampsons Case 1 Sheet 1 on Excel

Dave and Sharon Sampson are 30 years old and have two children, who are five and six years old. Since marrying seven years ago, the Sampsons have relied on Dave’s salary, which is currently $50,000 per year. Sharon recently obtained a part-time job that pays an annual salary of $15,000. Now that Sharon is also earning income, they hope to use her income to accumulate savings for their children’s college education in the distant future and also to buy a new car for Sharon, because her existing car is very old and constantly needs repairs.

1) Help the Sampsons prioritize their financial goals. Specifically, assess whether their primary goal at this point should be saving for their children’s college education in the future, versus buying a new car for Sharon.

2) The Sampsons hope that $1,000 per month of Sharon’s salary can be used to boost their savings. How can they monitor this goal over time to ensure that the money is used in this manner?

Information for Sampsons Case 2 Sheet 2 on Excel

The Sampsons realize that the first step toward achieving their financial goals is to create a budget capturing their monthly cash inflows and outflows. Dave and Sharon’s combined disposable (after-tax) income is now about $5,000 per month.

Reviewing their bank statement from last month, Dave and Sharon identify the following monthly household payments:

$1,100 for home expenses (including the mortgage payment, home insurance, and property taxes)

$100 for Internet

$200 for electricity and water

$200 for cellular expenses

$800 for groceries

$200 for a health care expenses

The Sampsons also review several credit card bills to estimate their other typical monthly expenses:

About $300 for clothing

About $400 for car expenses (insurance, maintenance, and gas)

About $200 for school expenses

About $900 for recreation and programs for the children

To determine their net worth, the Sampsons also assess their assets and liabilities, which include the following:

$2,000 in their checking account

Home valued at $150,000

Furniture worth about $3,000

Sharon’s car, which needs to be replaced soon, is worth about $1,000; Dave’s car is worth approximately $8,000

They owe $130,000 on their home mortgage