| Course | MAT 245 Personal Finance |
|---|---|
| Module | Module 1 |
| Paper type | Personal financial plan |
| Length | About 1,021 words, 6 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | October 2026 |
Free sample paper for MAT 245 Module 1
Starting Below Zero: A First Financial Plan, Net Worth Statement and Ranked Goals for a Young Professional
Student Name
Business Administration Program, Aspen University
MAT 245: Personal Finance
Instructor Name
Month Day, Year
Starting Below Zero: A First Financial Plan, Net Worth Statement and Ranked Goals for a Young Professional
Taylor Monroe is 27 and works as a dental hygienist at a practice in Columbus, Ohio, earning $68,000 a year. Taylor has been paid well for three years and is not sure where the money goes. There is a credit card balance that never seems to shrink, student loans that will take years to pay and a vague wish to buy a house. Taylor's new employer offers a 401(k) with a 4% match, but Taylor contributes only 2% because money feels tight. This paper builds a first financial plan. It is an example for learning, not individual financial advice.
The Starting Point
A net worth statement lists what a person owns and owes at a single date. It is the baseline against which progress is measured.
| Assets | Liabilities | ||
|---|---|---|---|
| Checking account | 2,100 | Student loans, 5.5% | 24,000 |
| Car, estimated value | 9,000 | Car loan, 6.9% | 5,500 |
| 401(k) from previous job | 6,000 | Credit card, 24% | 3,800 |
| Total assets | 17,100 | Total liabilities | 33,300 |
| Net worth | (16,200) |
Income, Career and the Size of the Plan
The plan depends on income as much as spending. Dental hygienists in Ohio earn more with experience and with added certifications, such as local anesthesia administration, which Taylor's practice reimburses. Taylor expects a raise of about 3% a year and could add a Saturday shift at a second practice for about $9,000 a year. Career planning belongs in a financial plan because the biggest financial asset most people in their twenties own is their ability to earn over the next forty years. The plan below assumes no second job, so any extra income can speed up goals rather than being required to meet them.
Monthly Cash Flow in Brief
Taylor's take-home pay is about $4,350 a month after taxes, the retirement contribution and health insurance. A month of tracking, described in Module 2, showed spending of about $4,250, leaving roughly $100 a month that was never deliberately saved. The goals below require finding about $800 a month for savings and debt payoff, which is the work of the budget in Module 2.
Why Planning Matters
Lusardi and Mitchell (2014) reviewed a large body of research on financial literacy. Using three simple questions, about compound interest, inflation and the benefit of diversification, surveys in the United States and other countries found that many adults could not answer all three correctly, with lower literacy among younger people, women and those with less education. Financial literacy was linked to behaviors such as planning for retirement, participating in the stock market and accumulating wealth, and evidence suggested that the relationship was at least partly causal.
Ameriks et al. (2003) studied households of educators and researchers with similar incomes and found large differences in wealth. Households with a greater propensity to plan, measured by attitudes toward making and following financial plans, accumulated more wealth, even after accounting for income and other factors. Planning, in their account, helped people control spending and save.
Planning Is a Habit That Can Be Measured
Lynch et al. (2010) developed a scale to measure propensity to plan, separately for money and for time and over short and long horizons. People's tendency to plan for money predicted outcomes such as credit scores, while planning for time was a distinct trait. The scale suggests planning is a stable habit that differs among people, and Taylor's description of not knowing where the money goes suggests a low propensity to plan for money in the short run. The plan below begins by building that habit.
Ranked Goals
| Rank | Goal | Amount | Deadline | Reason for rank |
|---|---|---|---|---|
| 1 | Raise 401(k) contribution to 4% to get the full match | About $113 more per month | Next paycheck | A 100% immediate return on the matched dollars |
| 2 | Starter emergency fund | $1,500 | 2 months | Keeps new emergencies off the credit card |
| 3 | Pay off the credit card | $3,800 | 9 months | Highest interest rate, 24% |
| 4 | Full emergency fund of three months' expenses | About $11,000 | End of year 2 | Protects against job loss |
| 5 | House down payment | $30,000 | 5 years | Large, long-term goal |
Why This Order
Capturing the match comes first because no other use of the money returns as much: every dollar Taylor contributes up to 4% is matched immediately. A small emergency fund comes next because, without one, the next car repair goes on the card and undoes the payoff. The card comes before the larger fund because its 24% interest costs more than any savings account earns. The student loans, at 5.5%, will be paid on schedule rather than accelerated for now. The down payment comes last because it is far off and depends on the earlier steps.
Risks to the Plan
Three events could derail the plan. A job loss would stop income, which is why the emergency fund ranks high. A large medical bill could arrive despite insurance; Taylor's plan has a $2,500 deductible, so the emergency fund should eventually cover it. And a car breakdown is likely sometime in five years for a car with 98,000 miles. Each risk is a reason to build cash before taking on the house goal, and Module 6 examines insurance in more detail.
Reviewing the Plan
Taylor will update the net worth statement every six months. If the card is paid off on time, net worth will have risen by roughly the card balance plus savings, a visible sign of progress. The plan will also be revisited after any major change, such as a raise, a move or a decision to return to school for a bachelor's degree in dental hygiene, which would change both income and debt. Putting the goals in writing and checking them on a fixed calendar is itself the kind of planning behavior that Ameriks, Caplin and Leahy found associated with greater wealth.
Conclusion
Taylor's plan starts from a negative net worth and five ranked goals. Lusardi and Mitchell show why basic financial knowledge matters, Ameriks, Caplin and Leahy show that planning is associated with greater wealth and Lynch and colleagues show that planning is a habit that can be built.
References
Ameriks, J., Caplin, A., & Leahy, J. (2003). Wealth accumulation and the propensity to plan. The Quarterly Journal of Economics, 118(3), 1007-1047. https://doi.org/10.1162/00335530360698487
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44. https://doi.org/10.1257/jel.52.1.5
Lynch, J. G., Jr., Netemeyer, R. G., Spiller, S. A., & Zammit, A. (2010). A generalizable scale of propensity to plan: The long and the short of planning for time and for money. Journal of Consumer Research, 37(1), 108-128. https://doi.org/10.1086/649907
What the MAT 245 Module 1 instructions ask for
MAT 245 opens with financial planning and goals, and Module 1 usually asks students to assess a financial situation and set goals for a real or described person. Your Module 1 directions in the classroom govern; Taylor is a made-up person, and nothing here should be read as advice for a real household. Describe the person's situation. Prepare a net worth statement. Explain why planning matters, using research. Set specific goals with amounts and dates. Rank the goals and explain the order, and identify risks that could derail the plan. Cite sources in APA 7 form.
How this MAT 245 Module 1 example is built
Taylor has $2,100 in checking, a car worth $9,000, $6,000 in a 401(k) from a previous job, $24,000 of student loans at 5.5%, a $5,500 car loan and a $3,800 credit card balance at 24%, and is not contributing enough to receive a 4% employer match. Lusardi and Mitchell's Journal of Economic Literature article reviewed theory and evidence on financial literacy, including the three widely used questions on interest, inflation and diversification. Ameriks, Caplin and Leahy's Quarterly Journal of Economics article studied wealth accumulation among similar households. Lynch, Netemeyer, Spiller and Zammit's Journal of Consumer Research article developed and tested the propensity to plan scale. The net worth statement shows assets of $17,100 and liabilities of $33,300. The ranked goals are capturing the full match now, a $1,500 starter emergency fund in two months, paying off the card in nine months, a three-month emergency fund by the end of year two and a $30,000 house down payment in five years.
MAT 245 Module 1 rubric: what earns full marks
Planning papers earn credit when they start from an accurate picture of the person's finances and set goals that are specific, ranked and realistic. This example prepares a correct net worth statement, uses Lusardi and Mitchell and Ameriks, Caplin and Leahy to explain why planning matters and uses Lynch and colleagues to show that planning is a habit that can be measured. The goals have amounts and dates, and their order follows from interest rates and risk. Explaining why the match comes first shows sound reasoning. Including income growth and the risks that could upset the plan shows the writer treats a financial plan as a living document rather than a list.
Common MAT 245 Module 1 mistakes, and how to avoid them
Planning papers often list goals like "save more" without amounts or dates. Make each goal measurable and time-bound. Another weakness is ignoring the order of goals; capturing an employer match and paying off high-interest debt usually come before slower goals. Prepare a net worth statement with assets and liabilities listed separately. Explain the reasoning behind the ranking. Use research to explain why planning matters. Finally, note that the plan should be revisited as circumstances change. Include income and career prospects, since earning power is a young person's largest asset.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Aspen University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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MAT 245 Module 1 questions, answered
What does MAT 245 Module 1 usually ask for?
Aspen's MAT 245 opens with financial planning and goals, so assessing a person's finances and setting ranked goals is typical. Read your classroom prompt.
What is net worth?
Total assets minus total liabilities. A negative net worth means a person owes more than they own, which is common early in a career with student loans.
Does planning lead to more wealth?
Ameriks, Caplin and Leahy found that households with a greater propensity to plan accumulated more wealth than otherwise similar households.
Where can I find a free MAT 245 Module 1 sample paper?
The example above builds a first financial plan with a net worth statement and ranked goals for a young professional.
How financially literate are Americans?
Lusardi and Mitchell found that many people cannot answer basic questions about interest, inflation and diversification, and that literacy is linked to planning.