© Take Charge Today — August 2013—The Perez Family Case Study – Slide 1Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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The Perez Family

Case Study

Take Charge TodayReceiving and Protecting Unit Assessment – Advanced Level

Bell work: Imagine being injured and not able to work for

several weeks. How can families prepare for these

situations?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Tips

• Directions are embedded throughout in bold, italic font. Do not work ahead

• All reflection questions which must be answered are in yellow with a question mark.

• When calculating income and making expenditure decisions, everything in red must be included in the total expenditure for that item.

• Bold letters indicate a response should be provided for a section when calculating the income, setting a goal, and making expenditure decisions.

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 4Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Meet the Perez Family

• Read the Perez Family story on pages 1-2

1. Do you agree or disagree with Camila’s belief that dropping out of school at the age of 16 was a good idea? Why?

2. Describe at least three of the family’s values (stated or inferred) throughout the story that may have had an impact on

their career and spending plan decisions

What do they do for employment

and how much do they earn?

Who are the family members?

What are some of the Perez family’s

values?

What did you learn about

spending plan decisions the Perez family

makes?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 5Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Paychecks and Taxes

1. Calculate Camila’s net pay (A-B)2. Calculate Ricardo’s net pay (C-E)3. Calculate the Perez family’s total net income

(F)

Green letters throughout the case study indicate a calculation

or decision should be made

Ricardo’s employer provides matching 401K and health care benefits.

How do these benefits support the Perez family?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 6Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Typical Expenditure Amounts

• Calculate the typical expenditure for each category using the family’s net household income (G-L)

How can these numbers be used as a guideline when making spending plan decisions for the Perez family?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 7Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Financial or Education Goal

• Set a financial or education goal for the Perez family(M)– Write the goal as a SMART goal (Specific,

Measurable, Attainable, Realistic, and Time Bound)

Share your goal with the class and discuss why you feel it is an important goal for the Perez family to achieve.

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 8Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Savings & Housing

Savings• Calculate the family’s

monthly savings allocation (N)

• Minimum of 5% of household net income

Housing• Place a next to the home

which is the best fit for the Perez family

• Record all applicable expenses (indicated in red) in the table (O-Q)

Which house is the best selection for the Perez family and why?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 9Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Food & Transportation

Food at Home• Place a next to the

food plan which is the best fit for the Perez family

• Record the applicable expense in the table (R)

Transportation• Place a next to the

transportation option(s) which are the best fit

• Keep both Ricardo and Camila’s needs in mind – Camilia needs an automobile to get to work

• Record all applicable expenses in the table (S-W)Which food plan is the best

selection for the Perez family and why? Which transportation option(s)

are the best for the Perez family and why?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 10Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Insurance

• Determine if the family will purchase disability insurance for Ricardo– If so, calculate 2% of his net income and record the

amount in the table (X)

• Determine if the family will purchase life insurance for Camila and/or Ricardo– If so, determine the policy amount and record the monthly

total(s) in the table (Y)Did you purchase disability and life

insurance for the Perez family? Why or why not?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 11Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Other Expenses

• Determine which other expenditures the Perez family will have and place a next to each expense

• Record the expenses in the table (Z-GG)• Keep in mind that most families have expenses in

each category

What are two expenses you choose and why? How much did you allocate to those expenses?

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 12Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Spending Plan

• Use the income and expenditure amounts determined for each category from pages 3-6 to develop a spending plan

• Record the amounts in the before accident column

• Ensure the Perez family spending plan has a net gain or zero balance (income less expenses) – If the balance is negative, review the expenditure

decisions and make the appropriate changes

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Camila’s Accident

• Read about Camila’s accident on page 9• Calculate the family’s income while Camila is

receiving government support (3-7)– Net income before the accident (3)– Total value of SSDI benefits (4)– Camila’s net income (5)– Perez family’s net income after the accident (6)– Total reduction in household net income after the

accident (7)Refer back to the Perez family’s spending plan. Enter the family’s

new income in the After Accident (working part time) column.

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Modify the Spending Plan

8. Explain three expenses that you changed in the Perez family’s spending plan after the accident

• Determine what expenses the family will need to reduce • Make a new spending plan for the family in the After Accident

columno Must have a net gain or zero balanceo Keep in mind that certain fixed expenses can not be

reduced, and other expenses may be contractual, making them hard to eliminate

© Take Charge Today — August 2013—The Perez Family Case Study – Slide 15Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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2 Years Later…

• Read about Camila’s return to full-time work on page 10

• In small groups, complete the reflection questions (9-10)

• Discuss as a class

The government benefits Camila received supported the Perez family short-term while Camila recovered.

However, the Perez family was ultimately better off financially once Camila returned to full-time work.