Sophomore Year Overview



We’ve completed our “Sophomore Year” now and have focused mainly on managing our personal risk through insurance.  Insurance is a vital part of a financial plan, so it’s very important to thoroughly go through your current policies and consider any additional insurance you may need.  To summarize what we’ve learned this “year”, we’ve covered:

  • IN201: Auto Insurance Basics – What auto insurance policies cover (both property & liability) and how to calculate the deductibles and costs of the policy.
  • IN202: Homeowner’s Insurance Basics – What homeowner’s insurance covers (property & liability) and how to calculate the deductibles and costs of the policy.
  • IN203: Medical Insurance Basics – How to analyze different medical policies and what they cover.  Also, deductibles and costs related to medical insurance as well as a brief explanation of where to obtain medical insurance.
  • IN204: Life Insurance Basics – The purposes and types of life insurance and how to calculate how much life insurance you need based on several different methods.
  • IN205: Disability Insurance Basics – What disability insurance covers and how to calculate how much disability insurance you need (long-term specifically).  Also, how it coordinates with other insurance, such as social security disability insurance.
  • IN206: Personal Liability Umbrella Insurance – How to determine whether you need an umbrella policy and if so, how much coverage you should obtain.  Also, the approximate costs and deductibles associated with these policies.
  • ST201: Basics of Buying a House – A step-by-step guide to purchasing a home from the initial research to closing.  Including, how to calculate the total costs of a home purchase using the official closing disclosure statement.
  • ST202: Fundamentals of Selling a House – A step-by-step guide to selling your house including a detailed analysis of how to calculate the total cash you will receive from the home sale after commissions, closing fees and paying off your mortgage.
  • ST203: Financial Guide to Buying or Leasing a Car – A step-by-step guide to purchasing a new/used vehicle or leasing, including a spreadsheet to analyze and compare these options in depth.


It’s now time to go back and revise your financial goals that are related to insurance and buying or selling a house or vehicle.  The specific questions that you should ask yourself at this time include:

  • Is there anything that needs to be updated in my financial goals based on adjusting insurance coverage and adding additional costs from purchasing new insurance policies?
  • Can I adjust or clarify any goals about buying and/or selling a house (for example, the costs you’ve estimated, the timing of the purchase or sale)?
  • Can I adjust or clarify any goals about purchasing or leasing a car (for example, the costs or timing)?


The Smith family (used as an example family in each class) adjusts their financial goals (in red) after looking at their current insurance coverage.  They neglected to put analyzing insurance coverage in their goals, so they’ve added it (and completed it).  They also updated their goal to buy a new car in the next few years based on their analysis of how much it would be to purchase the vehicle they want.


Congratulations on completing the second year of learning about MAKING YOUR MONEY MATTER!

What did you learn during the sophomore year classes?




I’m Kathryn Hanna-wife, mother of 3 and a Certified Public Accountant. I love to budget (really, I do!) , build spreadsheets and spend money on travel, sewing supplies and good chocolate.


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