Sharpening Money Decisions
Case Study 1:
Casey is preparing to leave for college in the fall. She lives in New York, but will be going to school in California, so she is planning on buying a car to get her there. She wants to buy something reliable, so she is deciding between a new car that will cost $17,000 with zero miles and a navigation system and a three-year-old car with 7,000 miles and no navigation system for $12,000. She has $10,000 in savings that she will use for the purchase and will take out a loan for the remaining amount.
What are the wants? – She wants to buy a reliable new car
What are the needs? – She needs a new car to get her to her college
What decision would you make and why? – I would make the decision to go with the $17,000 car because it has no miles, it’s brand new, and has a navigation system. While the other car is three years old, has 7,000 miles and no navigation system, at least the new car may last you longer and have many convinces for you.
Case Study 2:
Tom has been saving for a new laptop for the past six months. He’s done his research and found a model that experts say will more than meet his needs. But new, it costs $3,000. He also found a refurbished version of the same computer with all of the same features online for $1,500. The refurbished laptop comes with a warranty and Tom bought a refurbished portable music player from the same company with no problems. Tom’s third option is a brand new laptop that costs $1,800 and has all of the features he needs but not all of the ones he wants.
What are the wants? – Tom wants a new computer that has everything he wants and needs on it.
What are the needs? – He needs a computer to have all the things he needs on there
What decision would you make and why? – I would buy the refurbished version of the laptop because it meets all his needs and has a warranty on it, not to machine it’s the cheapest one.
Case Study 3:
Stephanie received $500 from her grandparents for her high school graduation. She’s been longing to buy a new watch and update her wardrobe because she’s starting a new job in two weeks, but next month she’s moving out on her own and will need to pay three months’ rent in advance, which totals $1,500. If she uses the money to buy the watch and clothes, she thinks she can save enough money from her new job to pay for rent, but she’s not sure.
What are the wants? – She wants to buy a new watch and update her wardrobe.
What are the needs? – She needs enough money to pay for rent.
What decision would you make and why? – I would make the decision to go out and get a new look but I wouldn’t buy the watch yet so that way I know I’ll have enough money to pay my rent.
Case Study 4:
Michelle’s been invited to go to a three-day concert with her friends. The only catch is that it’s a 9-hour drive, and traveling for an entire weekend means she’ll need lots of cash. She estimates that gas, food, tickets and camping will cost around $400. She has a car payment of $250 coming up and her $89 cell phone bill is due at the end of the month. She also needs to buy her mom a birthday gift, which she thinks will cost $50. She has $700 in savings.
What are the wants? – She wants to go to a concert with her friends.
What are the needs? – She needs to make her payments that she has coming up.
What decision would you make and why? – I wouldn't go because I wouldn't have enough money to do so and pay all my bills.
Casey is preparing to leave for college in the fall. She lives in New York, but will be going to school in California, so she is planning on buying a car to get her there. She wants to buy something reliable, so she is deciding between a new car that will cost $17,000 with zero miles and a navigation system and a three-year-old car with 7,000 miles and no navigation system for $12,000. She has $10,000 in savings that she will use for the purchase and will take out a loan for the remaining amount.
What are the wants? – She wants to buy a reliable new car
What are the needs? – She needs a new car to get her to her college
What decision would you make and why? – I would make the decision to go with the $17,000 car because it has no miles, it’s brand new, and has a navigation system. While the other car is three years old, has 7,000 miles and no navigation system, at least the new car may last you longer and have many convinces for you.
Case Study 2:
Tom has been saving for a new laptop for the past six months. He’s done his research and found a model that experts say will more than meet his needs. But new, it costs $3,000. He also found a refurbished version of the same computer with all of the same features online for $1,500. The refurbished laptop comes with a warranty and Tom bought a refurbished portable music player from the same company with no problems. Tom’s third option is a brand new laptop that costs $1,800 and has all of the features he needs but not all of the ones he wants.
What are the wants? – Tom wants a new computer that has everything he wants and needs on it.
What are the needs? – He needs a computer to have all the things he needs on there
What decision would you make and why? – I would buy the refurbished version of the laptop because it meets all his needs and has a warranty on it, not to machine it’s the cheapest one.
Case Study 3:
Stephanie received $500 from her grandparents for her high school graduation. She’s been longing to buy a new watch and update her wardrobe because she’s starting a new job in two weeks, but next month she’s moving out on her own and will need to pay three months’ rent in advance, which totals $1,500. If she uses the money to buy the watch and clothes, she thinks she can save enough money from her new job to pay for rent, but she’s not sure.
What are the wants? – She wants to buy a new watch and update her wardrobe.
What are the needs? – She needs enough money to pay for rent.
What decision would you make and why? – I would make the decision to go out and get a new look but I wouldn’t buy the watch yet so that way I know I’ll have enough money to pay my rent.
Case Study 4:
Michelle’s been invited to go to a three-day concert with her friends. The only catch is that it’s a 9-hour drive, and traveling for an entire weekend means she’ll need lots of cash. She estimates that gas, food, tickets and camping will cost around $400. She has a car payment of $250 coming up and her $89 cell phone bill is due at the end of the month. She also needs to buy her mom a birthday gift, which she thinks will cost $50. She has $700 in savings.
What are the wants? – She wants to go to a concert with her friends.
What are the needs? – She needs to make her payments that she has coming up.
What decision would you make and why? – I wouldn't go because I wouldn't have enough money to do so and pay all my bills.