Richard and Monica asked if they could come in to discuss an issue. At that meeting, Monica seemed worried, and Richard sunk back in his chair. Monica said Richard was having second thoughts about going ahead with the financial plan. He wanted to know what the specific benefits of financial planning were. As far as he was concerned, he said, people's planning took place one paycheck at a time. I could tell by Monica's way of explaining this that she disagreed. She asked for my help in dealing with this problem.

Case Application Questions 1. What do you think is the difference in philosophy between the two? 2. How does the life cycle theory enter the discussion? 3. Based on the original interview with Richard and Monica and this one, how can looking at the household as a business help? 4. What are the benefits of financial planning for these people? 5. Write a explanation to their issues and your recommendation.