Reference no: EM133062616

Question - A good friend of yours, Frank, just graduated college and is starting his first career job working as a game developer with a salary of $72,000. While Frank has an outstanding knowledge of information technology and developing cool "apps" for the iPhone, he has absolutely no idea how to organize his finances, and he wishes that he had taken a personal finance course while he was in college. As his new life begins, he is confused with financial terminology like financial planning, budgeting, tax audits, financial services, etc. He would like to have his own "place" to live and maybe purchase a new car and house in the near future.

Frank just received a letter from the financial aid department stating that he will need to start making payments on his student loans in six months-ouch! He has been purchasing new clothes for his job, eating out all the time, while the money just seems to flow out from his bank account for all of his new expenses. The good news is that Frank is about to receive his first "real" paycheck which is quite exciting. Before cashing that check and heading to the uptown area of Dallas, Frank comes to his senses and has just sent you a text on what to do with his cash. He understands that you are taking a personal finance course and are becoming quite skilled at managing money. Let's help Frank build a positive financial plan.

1. Oh no! Frank just received an audit notification from the IRS and he is completely freaked out. Help Frank complete a list of his audit rights, and strategies of how he should conduct himself in the audit.

2. Great work, Frank survived the IRS audit thanks to your advice and even received a $2,000 check due to an error by the IRS. Frank thinks he should put that money in the bank and would like to know what other services banks offer besides a simple checking account. List and explain to Frank the major types of financial services that a bank or financial institution usually offer their customers.

3. It just keeps getting better for Frank as his Aunt Sally has just given him a graduation gift of $1,000! However, she says that Frank must save at least 90% of this amount. List and explain several options of savings plans that he could put this money towards.