Ch. 2 test
Complete case studies see Below: 1. Shannon is a senior in high school and works part time at a local restaurant. She makes good tips and always has spending money. Her parents will be paying for her college and her car is already paid for. She knows you are taking a personal finance class and asks you what she could be doing better with her money. What do you tell her? 2. Melissa is about to get a $200-per-month raise. She wants a new television and some furniture. She has $500 in her savings account and figures with her raise she will have the cash to make her purchases easily within a few months. She also has $1,000 in available credit remaining on her credit card and is thinking about using it to buy everything now rather than waiting until she has the money. What would you tell Melissa? Justify your answer. 3. Jeremy graduated from college two years ago with a degree in communications. He has a good job as a communications specialist making $50,000 a year. Because he took a basic financial class during his sophomore year of college, he understands the importance of creating a plan for his money. So he made it a priority to start saving, and he currently has a savings account of $5,000 built up. He’s motivated to continue putting away money for the future. However, he has $6,500 in school loans left to pay. He’s already paid off $8,500 since finishing college. Just like with his savings, he’s being aggressive and paying more than the minimum payments each month. Jeremy plans to be debt-free in 15 months. What advice do you have for Jeremy? 4. Latisha works as a graphic designer and just got a raise of $100 each month. She wants to buy a new television and furniture and thinks this raise is enough to pay for those purchases. Tired of her hand-me-down furniture from her parents and her 10-year-old television that she got from a garage sale, she plans to use her credit card to buy the new things. Currently, she has $500 in her savings account, and she figures that with her raise she can easily do payment plans toward the television and furniture. To make the situation even more tempting, her credit limit still has $1,000 before it is maxed out. She plans to use the card toward the purchases so she can buy everything now. What advice would you give Latisha? 5. Alex is a high school sophomore who recently learned about the importance of having an emergency fund in her personal finance class. She doesn’t have a regular job yet because her soccer schedule and school assignments take up most of her time. She would like to start saving up an emergency fund and money for her summer soccer camp. How can Alex earn money without having a regular part-time job?
0 Comments
Leave a Reply. |
Archives
May 2019
AuthorWrite something about yourself. No need to be fancy, just an overview. Categories |