| Course | FIN 350 Advanced Personal Financial Planning |
|---|---|
| Module | Module 3 |
| Paper type | undergraduate milestone analyzing a household's financial health, psychology and goals |
| Length | About 1,070 words, 6 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | BS Finance |
| Updated | October 2026 |
Free sample paper for FIN 350 Module 3
Client Analysis: The Kessler Household
[Student Name]
Southern New Hampshire University
FIN 350: Advanced Personal Financial Planning
Milestone One
[Instructor Name]
[Date]
The organization, setting and figures below are a composite written as a model document. No real employer, client, colleague or patient is described.
Client Analysis: The Kessler Household
Introduction
Hannah and Dario Kessler of Omaha, a composite couple, asked for a financial plan after realizing they "make good money but never seem to get ahead." This milestone analyzes their current financial health, the beliefs and habits behind their decisions, their goals and the biases most likely to work against them. Milestone Two will use this analysis to calculate what their college and retirement goals require.
The Household
Hannah, 39, is a hospital pharmacist earning $138,000. Dario, 41, owns a twelve-person heating and cooling company and pays himself a salary of $95,000 plus about $30,000 in year-end distributions. Their children are 9 and 6. They bought a larger home in 2023 with a 6.1 percent mortgage. Hannah contributes 8 percent to her 401(k) with a 4 percent employer match; Dario contributes $8,000 a year to a SEP-IRA through the company.
Balance Sheet
Statement of financial position, September 2025
| Assets | Amount | Liabilities | Amount |
|---|---|---|---|
| Checking and savings | $22,000 | Mortgage at 6.1% | $310,000 |
| Brokerage account | $25,000 | Truck loan at 7.4% | $38,000 |
| Hannah's 401(k) | $165,000 | Hannah's student loans at 6.8% | $61,000 |
| Dario's SEP-IRA | $72,000 | Credit card at 23.9% | $9,400 |
| 529 plans (two) | $22,000 | ||
| Home | $480,000 | ||
| Total assets | $786,000 | Total liabilities | $418,400 |
| Net worth | $367,600 |
The business is not included. It has real value, but it is illiquid, and its worth depends on Dario's continued work. Treating it as an asset to spend in retirement would be premature until it has been valued and a sale or succession is realistic. Excluding it also means net worth is understated, which the plan will revisit.
Cash Flow
Gross income is about $21,900 a month. After taxes, insurance and Hannah's 401(k) deduction, about $12,750 reaches their accounts, and the September statements show about $12,400 of spending, leaving roughly $350 a month of free cash flow. Their total saving, including both retirement plans, the employer match and the 529 contributions, is about $27,560 a year.
Financial Ratios
Key ratios and benchmarks
| Ratio | Calculation | Kesslers | Common benchmark |
|---|---|---|---|
| Emergency fund | $22,000 / $12,400 monthly spending | 1.8 months | 3-6 months; 6 for business owners |
| Debt payments to gross income | $4,460 / $21,900 | 20.4% | Below 36% |
| Housing costs to gross income | $2,400 / $21,900 | 11.0% | Below 28% |
| Savings rate | $27,560 / $263,000 | 10.5% | 15% or more |
| Net worth to expected net worth | $367,600 / $1,052,000 | 0.35 | 1.0 or higher |
The debt and housing ratios are healthy; the household can carry its debts. The weaknesses are liquidity, saving and accumulated wealth. With one income from a small business that can be seasonal, 1.8 months of reserves is thin, particularly because the business's own cash is mixed into Dario's sense of security. The savings rate is below the 15 percent that most retirement studies suggest for a couple starting in their late thirties. The last ratio uses a rough rule from Stanley and Danko (1996), who estimated expected net worth as age times pretax income divided by ten. At 0.35, the Kesslers are well below what their income would suggest, mainly because the 2023 home purchase, student debt and business reinvestment absorbed savings.
Client Psychology
Each spouse completed the Klontz Money Script Inventory, a questionnaire that identifies beliefs about money learned early in life (Klontz et al., 2011). Hannah scored highest on money vigilance: she is careful, anxious about the future and uncomfortable talking about money. Her parents lost their savings when she was a teenager, and roughly 33 cents of every 401(k) dollar sits in the plan's stable value option despite a horizon of more than 20 years. Dario scored highest on money worship, the belief that more money or a bigger business will solve problems. He reinvests profits in trucks and staff and trusts that the company will provide for retirement. Neither belief is wrong in itself; Hannah's caution protects the family, and Dario's ambition built a business. But together they explain a household that holds too much cash in the wrong place and too little invested for the long run.
Goals in Measurable Form
The Kesslers' goals
| Priority | Goal | Amount | Target date |
|---|---|---|---|
| 1 | Pay off the credit card | $9,400 | Within 3 months |
| 2 | Build a personal emergency fund of six months | About $75,000 | Within 24 months |
| 3 | Pay for in-state public university study for both children | About 50-75% of projected cost | Fall 2034 and fall 2037 |
| 4 | Retire when Dario is 65 and Hannah is 63, drawing roughly $90,000 to $108,000 yearly from the portfolio at current prices | To be calculated in Milestone Two | 2049 |
| 5 | Prepare the business for sale or succession | Valuation and plan | Within 5 years |
Protection Snapshot
A brief look at insurance shows gaps that belong in the analysis even though the guidelines focus on savings. Hannah has group term life insurance of twice her salary and employer long-term disability coverage that replaces 60 percent of pay. Dario has a $250,000 term policy bought when Mia was born and no disability coverage at all, although the household and twelve employees depend on his ability to work. Neither spouse has a current will, and the children have no named guardian. These gaps do not change the ratios above, but a single accident or illness could undo every goal in the next section, so the final plan will treat them as urgent.
Cognitive Biases
Mental accounting. Thaler (1999) describes how people assign money to mental categories and treat each by different rules. Dario keeps about $31,000 of surplus cash in the business account while the family pays 23.9 percent on a credit card, because the business money "isn't ours."
Loss aversion. Kahneman and Tversky (1979) found that losses feel about twice as painful as equal gains. Hannah's large stable value holding reflects this; it protects her from a short-term loss at the cost of long-term growth.
Overconfidence. Dario expects the business to fund retirement but has never had it valued and has no succession plan. Small-business owners often overestimate what a buyer will pay, especially for a firm that depends on the owner.
Present bias. More than $1,100 a month on restaurants and delivery competes directly with goals 10 and 25 years away.
Conclusion
The Kesslers can carry their debt, but they are short of reserves, saving too little and relying on a business whose value is unknown. Their money beliefs and biases explain much of that pattern. Milestone Two will calculate the savings their college and retirement goals require, and the final plan will need to work with these biases rather than against them.
References
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291. https://doi.org/10.2307/1914185
Klontz, B., Britt, S. L., Mentzer, J., & Klontz, T. (2011). Money beliefs and financial behaviors: Development of the Klontz Money Script Inventory. Journal of Financial Therapy, 2(1), 1-22. https://doi.org/10.4148/jft.v2i1.451
Stanley, T. J., & Danko, W. D. (1996). The millionaire next door: The surprising secrets of America's wealthy. Longstreet Press.
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183-206. https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F
What the FIN 350 Module 3 instructions ask for
Milestone One in FIN 350 usually provides a client case and asks you to analyze the client's current financial health, how the client's psychology influences financial behavior, the client's specific planning goals and the role cognitive biases may play. Expect to prepare or interpret a balance sheet and cash flow statement, calculate financial ratios such as liquidity, debt and savings ratios, and compare them with benchmarks. Directions often ask you to classify goals by time frame and to discuss attitudes toward risk and money. Some versions supply a template. The analysis should be grounded in the client's numbers and should prepare for the later milestone that calculates what each goal will cost.
How this FIN 350 Module 3 milestone one example is built
The sample lays out the Kesslers' balance sheet: $786,000 in assets, including a $480,000 home and $262,000 in retirement and brokerage accounts, against $418,400 in debt, for net worth of $367,600. Ratios show 1.8 months of liquid reserves, debt payments of 20 percent of gross income, housing costs of 11 percent and a savings rate of about 10.5 percent, each compared with a benchmark. A section on psychology describes Hannah's vigilance about money and Dario's belief that the business will solve everything. Five goals are rewritten in measurable form, and four biases are named: mental accounting, loss aversion, overconfidence about the business and present bias. It closes by previewing what Milestone Two must calculate.
Where the FIN 350 Module 3 rubric puts the points
The milestone rubric typically scores the analysis of financial health, the use and interpretation of ratios, the analysis of client psychology, the statement of goals and the identification of cognitive biases, along with clarity and use of sources. High-scoring work calculates ratios correctly from the case, explains what each means for this client, links psychology and biases to specific behaviors in the case and writes goals with amounts and dates. Work loses points for ratios with no benchmark or interpretation, for generic descriptions of biases with no example from the client, and for goals such as "save more" without amounts. Tables for statements and ratios are expected in most versions.
FIN 350 Module 3 help: the mistakes that cost points
Students often calculate many ratios and interpret none. Choose the ratios that matter for this client and, for each, give the figure, the benchmark and one sentence on what it means. Take extra care with the balance sheet: separate liquid assets from retirement accounts and the home, since lumping them together hides a weak emergency fund. When you discuss psychology, connect each belief to a behavior you can see in the numbers, such as idle cash or conservative investments. Turn vague wishes into goals with an amount, a date and a priority. Name biases sparingly, two to four, and give each one a concrete example from the case rather than a definition.
Get FIN 350 Module 3 written to your instructions
Send the FIN 350 Milestone One guidelines, your client case and the template if your course uses one. We build the statements, calculate and interpret the ratios, analyze client psychology and bias and state the goals clearly. About two days; first milestone free. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
More FIN 350 papers and related BS Finance samples
- FIN 350 Module 1 Discussion: What a Planner Must Learn in the First Meeting
- FIN 350 Module 2 Client Spotlight Reflection: One Month of the Kesslers' Statements
- FIN 350 Module 4 Education Planning Assignment: Funding Two Children's College Costs
- FIN 350 Module 5 Milestone Two: What Retirement Will Cost and What to Save
- FIN 350 Module 6 Discussion: Tax Moves for a Business Owner and an Employee
- ACC 405 Module 7 Project Two: Forming, Growing and Dissolving a Sugarmakers' Partnership
- ACC 318 Module 7 Project Two: An Estimate Change and a Restatement
- ACC 202 Module 3 Costing Methods Assignment
- BUS 496 Module 4 Status Report Assignment: A Midpoint Memo to the Client
FIN 350 Module 3 questions, answered
Where can I find a free FIN 350 Module 3 Milestone One sample?
This page has the complete FIN 350 Module 3 Milestone One: a family's balance sheet, ratios, money beliefs, measurable goals and biases analyzed in one document.
What ratios are used in personal financial planning?
Common ones include the emergency fund ratio (liquid assets to monthly expenses), debt-to-income, housing cost ratio, savings rate and net worth compared with income and age.
How many months of expenses should an emergency fund cover?
Three to six months is a common guideline, with more for households with irregular or business income.
What are money scripts?
Beliefs about money learned early in life, such as that money is dangerous or that more money solves every problem, which shape adult financial behavior.
How do cognitive biases affect financial planning?
They lead clients to decisions that work against their goals, such as holding cash while paying high-interest debt, avoiding risk after losses or overestimating one investment.