Case Study: Personal Financial Planning Answers

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Which points did you include in your response? Check all that apply.

Option A is not the best choice, because the monthly payments will be too high.

Option B is not a good choice, because it requires too high of an up-front cost, and the mileage restriction might be a problem.

Option C is the best choice for my budget, and it will allow me to own a car outright once the loan is repaid.

Your used car payment will be $250 per month. What financial challenge do you now face?

My auto insurance costs more than my renters insurance.

I will spend more on groceries now that I am buying gas.

My savings budget is too high.

My car payment is higher than my discretionary spending.

You will need to revise your budget to account for a car payment.Which expense category would be the most difficult to change or reduce?

entertainment

rent

savings

groceries

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