Group project 360 - Homework Assignment. Received 100% PDF

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Homework Assignment. Received 100%...

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The Drackett Family: Challenges and Triumphs of Raising Two Girls Introduction Mrs. Shauna Drackett, 35 years old, is married to Mr. Daniel Drackett, 32 years old. The couple married 4 years ago and a year after had their first daughter Stella (3 years old), and a year later had Hazel (2 years old). Daniel is a firefighter and works a lot. Shauna is an 8th grade teacher at a public school. They live in a newer built home in a residential neighborhood in Honolulu. None of their family lives here since they moved here 10 years ago from the mainland. Stella is in preschool and Hazel attends a daycare when the parents are working The Drackett Family has many qualities that allow them to manage their resources and demands. On a scale of 1 – 10 (with 10 being very effective, and one being not effective at all), we rated the Drackett family a six. The main reasons they have a rating of six out of 10 include: 1) They are clear on their financial standings. They have been saving separately since they were young and now, since being married, have started putting away money for the girls college education: 2) they are managers of their lives but also leaders because they have set long term goals about health, education, etc.; 3) the family has very intrinsic values which helps set them up for having SMART goals that deal with family matters. Finally, they received a six because they use the resources that they have, since they do not have their family here, they use other human sources like their neighbors, and friends that they have made. In contrast, the Drackett’s have things they can improve on to be an all-effective resource manager. They can improve by learning to reduce their stress by setting priorities. Often time the Drackett’s are late for events, school, and even work. Another way they can improve is realize that their actions are directly related to outcomes. Their locus of control is often external. They think things happen to them because of fate or luck rather than because of their actions. This paper explores the effectiveness of the Drackett family to manage their resources with their busy lifestyle. We will compare the interview we did with the family with what we have learned in this class about goals related to families with young kids living in Hawaii. This paper also includes improvements that can be made so the family can manage with less stress and then we will finish with reflections on lessons learned and recommendations. Reasons Why Family has a Rating of 6 Intrinsic Values The Drackett Family understands that internal values are more important than external values. They demonstrate this by: a. Both parents agree on consequences and discipline techniques when it comes to their daughters b. Their SMART goals are directly related to the values. For example a value they have is commitment. A goal related to that is both Shauna and Daniel make an effort once a week to go on a date just the two of them so that their marriage stays strong. c. A priority in their life is budgeting their money. They understand that it is expensive to live in

hawaii and giving their children the opportunity to go to college is also a priority so they commit to a monthly budget to keep them on track.

SMART Goals The Drackett Family have a few SMART goals. a. They set up long term goals for their family such as for their health, education, etc. b. They started saving up for both their daughter’s college education.

Purposeful and Proactive Behaviors The Drackett Family is purposeful and proactive in their own ways. a. Although they have limited resources especially since they don’t have any family members here with them in Honolulu, they use their human resources like their neighbors and friends. b. They have been saving even before they got married and now that they are married, they are saving money for both their daughters. c. They know how to be managers and leaders of their own lives. d. Both Shauna and Daniel make an effort to go on dates once a week to make sure their relationship bond is still strong even though Daniel does work a lot. Good Coping Skills The Drackett Family has good coping skills. a. They decided to move out of the mainland 10 years ago with no help of anyone that lives in Honolulu. Basically, they started a fresh new live together in Honolulu. b. Whenever they need to go to work, they drop Stella off to preschool and they put Hazel in a day care before going to work. c. They did not have any family members to run to when it came to resources, but they did know that they had human resources that they were surrounded by and that is how they got to where they are today. Also with the help of their parents, by phone, who are in the mainland.

Effective Decision Making Skills The Drackett Family are okay with decision making skills. a. For example, when Shauna wanted a brand new BMW SUV, but Daniel was able to get her to change her mind and get a brand new Toyota 4Runner instead since it would be a lot cheaper and the loan payment would not be so bad. b. They outweigh the pros and cons for a lot of their decision makings and they choose the one that has more pros and the least amount of cons.

c. They also explore many different options before choosing the right one.

Locus of Control The Drackett Family locus of control is often external. a. They think things happen to them because of faith or luck. b. Sometimes they don’t have control on their lives because of their actions and they outcome to comes with. c. They make think they are in control of their lives because they set aside money for their two daughters college education and that they started saving money early, but they are not as successful with setting long and short term goals for their family or as a family.

Use of Resource Allocation Principles The Drackett Family are somewhat success when it comes to resource allocation principles. a. Since Shauna’s car is starting to break down, she’s been telling Daniel that they should go car shopping to replace hers. She mentioned how she wanted a new Mercedes SUV, but Daniel told her that it is out of their price range especially since their daughters are still young. Instead, Daniel suggested for Shauna to buy a brand new Toyota 4Runner, which would be perfect for her and as a family car and it is a bit cheaper than a Mercedes. b. When it comes to grocery shopping, Shauna does couponing for all sorts of stuff especially since she is a public school teacher who needs to buy her own supplies for her classroom, so she gets more results using fewer resources. c. They both bought life insurance for themselves along with their two daughters and they also have health and dental insurance; protect resources that we have. d. Since they recently bought a new car and are financing it, they decided not to get the latest iPhone model because their phone still works and they still have to pay off their car loan. Use of Different Types of Plans The Drackett Family need to be able to use at least 3 different types of plans. a. Majority of the time the Drackett Family are more towards directional planning, which gets them from point A to B. b. They definitely do have a contingency plan, which is why they both signed up for life and health insurance for themselves as well as their daughters. Especially since Daniel is a firefighter than life insurance is very important for their family. c. The Drackett Family need to start having strategic plans to help them before for their future along with their daughters’ futures as well. By being able to start saving up for their retirement, they will be able to show their daughters that they should do the same when they reach their age too.

Activity Trap The Drackett Family do not get caught in the activity trap. a. They know that the purpose of them saving money aside is to put their daughters into a good college and also possibly a private school. b. They both know that they go on dates once a week, not only to have fun, but to also make sure that their relationship stays strong and that their both on the same page about everything. c. Shauna and Daniel both know that when it comes to shopping, they only buy things that they need instead of wanting. Communication Styles Drackett Family is not that great when it comes to communicating. a. They don’t communicate very well when it comes to meetings and being at a specific place at a specific time. They are always late. Sometimes even late for work. b. They don’t fully communicate as managers about their values and action plans as individuals and as a family.

Literature Review College Student Loans When looking at student loans we tend to agree on an assortment of things. College student loans are rapidly increasing, because of the increase in tuition costs. The increase in student loans means more people are deciding to further their education past a high school diploma. Some have the help of scholarships, financial aid, or because they're an athlete for the school, but for some students, they sign up for loans that will help them now, and will pay it off once they graduate. Some statistics that prove tuition is increase states: The college premium rose by 27% and real tuition has increased by 63% and 43% among public and private four-year colleges (Rothestein and Rouse, 2010). This paper explores how student loans affect borrowers and potential borrowers. One of the main factors on how loans affect students is the education and knowledge on how loans work and financial behaviors. A survey (Center for Studies in Higher Education, 2005) shows that an information gap exists between minorities and the rest of the population and the only financial options they were informed about were presented to them after enrolling for a student loan. Javine (2013) talks about how, “first generation” college students often have high loans to pay off at the end of the degree because they usually come from low income families that cannot help the financially and are uneducated on student loans and debt (p. 371). In the research it was repeated that students who sign up for loans, sometimes are at risk for

failing to complete college. Since the use of student loans is so widespread, there is a high dropout rate for college students, which suggests that there is a considerable financial risk to them taking out a loan: many students who borrow to pay for college fail to earn a college degree (Chatterjee, Ionescu, 2012). Students who participate in student loan programs must repay the loans regardless if they finish college or not. Similarly it was said that students with lower grade point averages tend to struggler more with student loans. This happens because these students often have to attend school longer meaning more student loans the time graduation happens. The want for higher education is a trend in today’s society. This means admitting students into college that have academic credentials that are not as strong as they have been in the past. Joel Best (2016) states “higher-risk students who need to borrow more money are more likely to have problems both completing their educations and keeping current with their loan payments” (pg. 54) Although, the idea of student debt perceived in a negative light because of the informational gap between income classes, causing lower income families to be debt-averse. The cost-benefit analysis among middle-low classes favors immediate income over higher education, and individuals who borrow out of low-income families have more difficulties repaying later on in life but overall borrowers believe in the benefits of higher education. With this being said, we are in agreement that College is an investment that is worth making. At first, it might seem like someone who did not invest in college is making more money because they are 4 years ahead in savings and not paying off debt. However, someone who went to college and needed student loans, on average, the college graduate will surpass the high school graduate by the age 34 (Avery and Turner, 2012, p.172).

Conclusion The Drackett family has a bright future ahead of them. Their household is supported by two working spouses, they prioritize family values, and they use their resources wisely. Today, both Daniel and Shauna are working full-time to financially support their family. Their eldest daughter Stella attends preschool and their second daughter Hazel visits daycare during the week. Even with two working spouses providing an income for their household, the Dracketts realize that family budgets and financial planning are essential when it comes to living in Hawaii. One of their long-term goals is to pay for the girls college tuition so they have started a savings account for that goal. They’ve also started a monthly budget that helps keep them accountable with their day-to-day spending. The Drackett family displays their intrinsic values through teaching their kids the importance of health and education over material assets. This allows them set a family lifestyle of living within their means. As parents, the two spouses commit time to spend with each other at least once a month to maintain a healthy bond. It is important that the children know that their parents are a strong unit that provide love and support to each other along with the children. The Dracketts are utilizing their resources to the best of their ability by turning to neighbors and co-workers for a family-type of support due to the fact that they have no relatives on the island. Lessons learned

By interviewing this family, we learned a lot of lessons that relate to concepts learned in class. This couple showed us the importance of who you decide to marry. It is important to marry someone with similar values. Also, make sure the person you are looking for can manage and maintain themselves. This family would not be as functional if the adults had to worry about their spouse. Intrinsic values can go a long way in the family setting. Because this family is not focused on material objects they have the ability to save money. Their intrinsic values allow them to live within their means. This is one of the family’s strong suits. We also learned that living close to family members can be very beneficial. We learned from this family’s struggle that family members can be a great resource. For example, picking kids up from school, babysitting so that parents can go out on dates, and many more. Recommendations We think that it’s great that the family has a sense of financial responsibility. Although, we’d like to recommend that the family meets with a financial advisor. This will create a clear picture for the family’s saving.

References Avery, C., & Turner, S. (2012). Student Loans: Do College Students Borrow Too Much—Or Not Enough? The Journal of Economic Perspectives, 26(1), 165-192. Best, J., & Best, E. (2015). The Shifting Landscape for Student Loans. Society, 53(1), 51-55. Chatterjee, Satyajit; Ionescu, Felicia. (2012). Insuring student loans against the financial risk of failing to complete college. Quantitative Economics, 3, 393-420. Javine, V. (2013). Financial knowledge and student loan usage in college students. Financial Services Review, 22(4), 367-387. Walsemann, K. M., Gee, G. C., & Gentile, D. (2015). Sick of our loans: Student borrowing and the mental health of young adults in the United States. Social Science & Medicine,124, 85-93. Rothstein, Jesse; Rouse, Cecilia Elena. (2011). Constrained after college: Student loans and early-career occupational choices. Journal of Public Economics, 95, 149-163....