Financial Responsibility Answers

The chart describes how four of Susan’s friends handle their money.Handling MoneyPersonDescription of SpendingSylviaShe uses her whole paycheck to buy food and necessities and pay the minimum amount on her bills each month. Then, she buys new clothes and pays for them with a credit card.NancyShe uses her whole paycheck to buy food and necessities and then takes a trip each month, which she pays for by adding to a personal loan with her credit union.FionaShe buys food and necessities and pays more than the minimum due on her bills each month. She goes out with her friends using some of the money that is left over in her checking account.UliShe buys food and necessities and pays the minimum amount on her bills each month. She goes out with her friends using the money that is left over in her savings.Which person is most creditworthy?

Ted has $55.00 in his pocket. Which purchase will he be able to pay for with cash?

Shondra is thinking of making payments for her laptop by setting up automatic withdrawals with the store. What must Shondra consider before she decides to pay with automatic withdrawals?

Which is a long-term consequence of making late payments on your bills?

Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills?

Which statement describes a disadvantage of Marnie paying a bill by telephone with a credit card or a debit card?

Which is a possible benefit of having a good credit history?

Which person made the best payment decision for their preferences?

George’s parents are going on a cruise and are concerned about paying their bills while they are gone because they will not have the usual means of communication. What is the best payment method for them to use while they are gone?

Veronique and Lily each bought a piece of luggage that had the same price in different stores. The table below shows how they will pay for the item. Payment for PurchasesNamePayment TypePayment Amount (Including Finance Charges)Number of Months to Pay for ItemVeroniqueStore financed$2510LilyCredit card$357Who made the better financial decision and why?