BUAD 251 TERM PROJECT The purpose of the Term Project in BUAD 251 is to start you off on the financial planning process and provide an opportunity to reflect on how you can achieve your financial goals. This project requires work over the entire term as you are required to submit an initial estimate and a final “wrap up” report. Term Project Estimate (Due Sunday January 31st in the Project Dropbox) Required:  Compile an estimate of what you think you will spend in each budget category in a typical month. You can use the template attached or create your own. Note that you don’t need to use every expense category. If one is not relevant to you, you can delete that row.  Briefly discuss the state of your current recordkeeping and banking arrangements (including credit cards) and any changes you plan to make;  List your short term (< 1 year), medium term (3 – 5 years) and long term (> 5 years) financial goals. Whenever possible, use specific amounts or financial goals that you have. This estimate will be in the form of a Word document (double spaced) no more than 1 page. You may attach an Appendix with your Cash Flow Statement. Final Term Project Report (Due Wednesday April 14 th in the Assignment Dropbox) Your Final Report will summarize work done over the term to meet your financial goals. Required:  An expenditures tracking summary (however you did it) which summarizes what you actually spent for the months of February and March. I don’t want all your receipts, just prepare a summary of spending and if you had any, a summary of income during the two months. This is best done using an Excel spreadsheet. Your summary should identify variances – e.g. you budgeted $100 for entertainment but actually spent $150, resulting in a negative variance of $50  An updated spending budget, based on what you learned from tracking your expenditures and based on changes in spending patterns you intend to make  Briefly discuss the progress you’ve made toward meeting your short term, medium term and long term financial goals;  A ‘Reflection Log’ (three pages maximum) outlining what you learned from this project. Your report must include the following sections (a. to i.), each with headings that match the wording below. a. Did you uncover any surprises in your spending habits? b. How did the actual vs. estimated expenditures compare? c. Did you identify any financial ‘leaks’ that could be corrected? Financial leaks are small dollar amounts but add up over time. d. What did you learn about your personal spending habits? e. As a result of this analysis, are there any changes you have made or will make in your spending habits? f. Did you plan for unexpected expenditures? How many unplanned / unexpected expenditures (e.g. car repairs, birthdays, speeding tickets)? g. How difficult was it to keep track of your expenditures? h. Is this a worthwhile exercise to do on a periodic basis? Why? i. Include any other observations, conclusions and/or insights that you gained about personal cash management from this project. Be sure to expand on your learning. Do not provide basic, one-line answers to the above questions. Remember this is a 2 nd year college term project and your written report should reflect this! This final report will be in the form of a Word document (double spaced) no more than 3 pages. You may attach an Appendix with 1 page for your Cash Flow Statement. Comments on Confidentiality: The instructor for this course is a CPA. This professional association has confidentiality requirements and Codes of Ethics. Please be assured that the financial information you submit will be kept strictly confidential and securely destroyed at the conclusion of this course. My Estimate HOUSING Rent or Mortgage Property Taxes Homeowners or Tenants Insurance Heat Electricity Water Telephone Cable Total TRAVEL Bus or parking pass Gas and oil Insurance Lease or loan payment Repairs Total LIVING EXPENSES Food My clothing Spouse clothing Child clothing Laundry Childcare Sports Hobbies Entertainment Liquor Tobacco Misc. Spending Money Medical Tuition & books Total DEBT Monthly payments – credit cards Loan payments Total Total Spending Actual February (Feb vs estimate) Variance My Estinamte Actual February Variance Housing Rent or Mortgage Homeowners or Tenants Insurance Heat Electricity Telephone Cable Total $1,000 $180 0 $200 $70 $100 $1,550 $1,350 $100 0 $96 $55 $75 $1,676 ($350) $80 0 104 $15 $25 ($126) Travel Hotel Gas and oil Total $500 $500 $1,000 $1,006 $566 $1,600 ($506) ($66) ($600) Living expenses Food Shopping Gym hand out Insurance Total $1,200 $1,500 $1,000 $1,000 $500 $5,200 $1,000 $1,824 $400 $764 $600 $4,588 $200 ($324) $600 $236 ($100) $612 $7,750 $7,864 ($114) No Debt Total spending My Estinamte Actual May Housing Rent or Mortgage Homeowners or Tenants Insurance Heat Electricity Telephone Cable Total Travel Hotel Gas and oil Total Living expenses Food Shopping Gym hand out Insurance Total Variance $1,000 $180 0 $180 $70 $100 $1,530 $1,350 $100 0 $246 $55 $75 $1,826 ($350) $80 0 ($66) $15 $25 ($296) $0 $200 $200 $0 $180 $180 $0 $20 $20 $800 $500 $388 $500 $1,000 $3,188 $300 $263 $0 $55 $0 $618 $500 $237 $388 $445 $1,000 $2,570 $4,918 $2,624 $2,294 No Debt Total spending ANALYSIS JANUARY 30, 2021 BINGXIN LYU BUAD 251-001 I currently have no income and no loans. All my expenses come from my parents. They give me $5,000 every month. I deposit my surplus in the bank monthly so that I can earn interest. Cause I am in China now, I don’t need to pay house, electricity and cable. Here's how much I spent last year. Heating is included in the rent. Look at my balance sheet, I realize that I spent lots of money on shopping. I must reduce unnecessary expenses, such as clothes and shoes. For travel section, I personally don’t think it's necessary to economize too much. As I have no loan at present, and all my money is given by my parents. To be honest, I don't know how to analyze my spending. Anyway, I will learn how to make my financial plan. I have invested in some stocks, I hope I can make $8000 this year. 
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