The Perez Family Case Study Bell work: Imagine being injured and not able to work for several weeks. How can families prepare for these situations? Take Charge Today Receiving and Protecting Unit Assessment – Advanced Level The Perez Family Case Study

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.

Step one – Read the Perez family story and complete the reflection questions. Step two – Consider the Perez family’s values, needs, and wants to calculate their income, set a SMART goal, and make major expenditure decisions. Step three – Create a spending plan for the Perez family in the before accident column using the information from pages 3‐6. Ensure the spending plan has a net gain or zero balance. If not, modify expenditure choices. Step four – Read about Camila’s accident, calculate her income from working part‐time and receiving government benefits and consider changes which should be made to the spending plan. Step five – Learn about the Perez family 2 years after the accident and complete the reflection questions.

Meet the Perez Family Read the Perez Family story on pages 1-2 What did you learn about spending plan decisions the Perez family makes? Who are the family members? What do they do for employment and how much do they earn? What are some of the Perez family’s values? 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

Paychecks and Taxes Calculate Camila’s net pay (A-B) Green letters throughout the case study indicate a calculation or decision should be made Calculate Camila’s net pay (A-B) Calculate Ricardo’s net pay (C-E) Calculate the Perez family’s total net income (F) Ricardo’s employer provides matching 401K and health care benefits. How do these benefits support the Perez family?

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?

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.

Savings & Housing Savings Housing Calculate the family’s monthly savings allocation (N) Minimum of 5% of household net income 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?

Which food plan is the best selection for the Perez family and why? Food & Transportation Food at Home Transportation Place a  next to the food plan which is the best fit for the Perez family Record the applicable expense in the table (R) 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?

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?

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?

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

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.

Modify the Spending Plan Determine what expenses the family will need to reduce Make a new spending plan for the family in the After Accident column Must have a net gain or zero balance Keep in mind that certain fixed expenses can not be reduced, and other expenses may be contractual, making them hard to eliminate 8. Explain three expenses that you changed in the Perez family’s spending plan after the accident

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.