Katherine Joy S.

Duterte Com3TF February 7,2021

Johan Gabriel Ballesteros Natalaray
Karl David Reloj Pescuela
Course: Bachelor in Science Business Administration Major in Operations
Management
Subject: Personal Finance
Professor: Ms. Ariadne Cordero

M1 - Case Study 1 - You are a Financial Planner

LEARNING TASK
You are a Financial Planner.
Nina Lazaro , age 23, recently received P100,000 gift from her aunt. She is
considering various uses for their unexpected funds including paying off credit card
bills from her last vacation, or setting aside down payment on a condo. Another
possibility is using the money for a technology certification course to enhance her
earning power. Nina also wants to contribute some of the funds to a world hunger
relief organization. She is overwhelmed by the choices, “I want to avoid the
temptation of wasting the money on impulse items. I want to make sure I use the
money on things with lasting value.”

Questions:
1. In each situation, what are the main financial planning issues that need to be
addressed?
- Nina Lazaro's key financial planning tasks include the following:
• Credit Card Bills from her last vacation
In the first place, Nina should be aware that it is not advisable for her to use the credit
card as means to pay off her not anticipated and non-returning expenditures. Before
deciding to go on a vacation, Nina should have prepared cash or existing financials
for her expected and unexpected expenditures.
• Condo Payment
There is not enough details of Nina’s backup or whole payment plan once she
committed on paying the down payment for the Condo. The amount of P100,000
pesos alone for initial mortgage allotment is not enough to provide her the security of
fully acquiring the Condo especially without a mortgage plan.
• Technology Certification Course
Nina has to plan and calculate clearly on how much of a good opportunity is the
educational course in enhancing her earning power.

• Donation to Hunger relief organization

Although it’s good to contribute to an organization like this, Nina still has to calculate
the amount of opportunity cost lost to the amount of money she decides to donate to
the organization.

2. What additional information would you like to have recommending actions in

each situation?
One, what is the current situation of Nina, Does she have a job or personal income? It
would also be good to look at her credit card history in order track how much of a
spender Nina is and how can we use the incoming cash gift to use as an opportunity to
earn more income and potentially pay off debts in a systematic way. Three, to know
the costs of condo acquisition. Four, know all the time and money to be spent in
learning the Technology Certification Course. Know the transparency in the amount
of donation she would give whether it would make Nina really satisfied with her help
or not.
3. Based on the information provided: along with Exhibit I-I and the financial
process, what actions would you recommend in each situation.

Based on the Exhibit 1-1 Nina Lazaro 23 years old, single, living independently, and
is a full-time employee She has a monthly salary of 25,000 and a credit debt balance
of 15,000. Nina needs to prioritize first and spend money that will last a long time.
Therefore, spending for the course of technological certification is beneficial. it will
improve her knowledge, skills and experience which would lead her to earn more
money.

As a financial adviser, I would encourage her to use some part of her money to pay
her credit card bills and with the help of technological certificate course resulted in
bigger income. She would be debt-free in this way. If she decides to invest in a
condominium, she cannot take vacation. She could also donate to the World Hunger
Relief Organization. In planning her goals, As seen to her actions, background,
situation, and values. I recommend taking one step at a time.

This Financial Plan helps Nina Lazaro in terms of recognize and knowing her short-
and long-term financial goals. It aids her in identifying and valuing her needs over
wants.