Decisions, Decisions, Decisions Part 2. Situation 1-Decision-Family Status You must determine your family situation. With each choice, you start with.

Decisions, Decisions, Decisions

Part 2

Situation 1-Decision-Family Status

You must determine your family situation. With each choice, you start with $6,000 in savings, but remember that future decisions and consequences will be affected by this decision. Record the $6,000 on your summary sheet.

Situation 1-Decision-Family Status

A. Single, sharing an apartment with another person +6,000

B. Married, no children +6,000

C. Married, one two-year-old child +$6,000

Situation 2-Decision-Using Credit

You want to borrow money to buy a two-year-old car. Decide where you want to obtain a loan and record the amount of the down payment on your summary sheet.

Situation 2-Decision-Using Credit

A. Obtain a loan from the bank with a required down payment of -$2,200

B. Obtain a loan from your credit union with a required down payment of -$1,800

C. Obtain a loan from a consumer finance company with a required down payment of -900

Situation 3-Decision-Auto. Insurance

You need automobile insurance and have the following choices. Select the type of coverage you desire and record the amount on your summary sheet. You may want to investigate each option carefully before making your decision.

Situation 3-Decision-Auto. Insurance

A. Full coverage, no deductible -$350

B. Full coverage with $100 deductible for damage to your car -$250

C. Bodily injury and property damage liability coverage only (no coverage for your car) -$200

Situation 4-Random Event-Inflation/Deflation

Recent economic conditions have affected consumer prices. Select a number to determine how you will be affected. Record the result on your summary sheet.

Situation 4-Random Event-Inflation/Deflation

1. Low inflation -$15

2. Moderate inflation -$25

3. No inflation NONE

4. Slight deflation +$20

5. High inflation -$60

6. Low inflation -$10

Situation 5-Consequences-Family Expenses

As a result of your decision in Situation 1, you have encountered additional living expenses.

Situation 5-Consequences-Family Expenses

Choice A – Subtract $275 for entertainment and meals in restaurants

Choice B – Subtract $225 for entertainment and restaurants.

Choice C – Subtract $250 for entertainment and child-care expenses.

Situation 6-Decision-Financial Records

In order to keep accurate personal financial records, select one of the following record keeping methods. Record the amount on your summary sheet.

Situation 6-Decision-Financial Records

A. Use your checkbook as your spending and budget record NO COST

B. Purchase a multicolumn record book -$20

C. Purchase a personal budget/home financial planning computer program -$65

Situation 7-Random Event-Increased/Decreased Savings

Select a number to determine which of the following events will influence your financial situation. Record the amount on your summary sheet.

Situation 7-Random Event-Increased/Decreased Savings

1. Unexpected medical expenses -$70

2. Unexpected tax refund +$50

3. Additional amount owed for taxes -$60

4. Unexpected salary bonus +$100

5. Unexpected tax refund +80

6. Additional amount owed for taxes -$40

Situation 8-Decision-Health Insurance

Your employer provides health and medical insurance coverage that covers only certain situations. You must decide if you wish to add additional insurance.

Situation 8-Decision-Health Insurance

A. Additional health insurance to cover 90% of all medical expenses -$220

B. Full coverage for all medical and hospital expenses -$350

C. No additional health insurance NO COST

Situation 9-Random Event-Your Credit Rating

Various circumstances have affected your credit costs. Select a number to determine how you are affected. Record the amount on your summary sheet.

Situation 9-Random Event-Your Credit Rating

1. Early payments (lower finance charge) +$70

2. One late payment (penalty) -$20

3. Early payment +$30

4. Early payments +$50

5. Early payments +$25

6. Late payments -$40

Situation 10-Consequence-Auto Accident

As a result of a recent auto accident, your car has been damaged. See the next slide for the repair costs, which will be based on your decision about automobile insurance in Situation 3. Be sure to record the amount on your summary sheet.

Situation 10-Consequence-Auto Accident

Choice A – have no expense

Choice B – subtract $100 for deductible to have their own car repaired

Choice C – subtract $270 to have their own car repaired

Situation 11-Random Event-Salary Bonus

Based on your job performance, you have earned a salary bonus. Select a number to determine the amount. Record the amount on your summary sheet.

Situation 11-Random Event-Salary Bonus

1. +$400

2. +$650

3. +$350

4. +$550

5. +$850

6. +$550

Situation 12-Decision-Investment Choice

You wish to invest part of your savings. Select one of the following investment plans. Record your choice on your summary sheet.

Situation 12-Decision-Investment Choice

A. Purchase stocks with current market value of $300 plus broker commission -$340

B. Invest $300 in mutual fund with no commission fee -$300

C. Place $300 in savings certificate at local financial institution -$300

Situation 13-Random Event-Insurance Rates

Your driving record has affected your automobile insurance rates. Select a number to determine the effect. Record the amount on your summary sheet.

Situation 13-Random Event-Insurance Rates

1. Good driving record +$40

2. Several accidents -$70

3. Good driving record +$30

4. Speeding ticket -$40

5. Completed driver’s ed. +$50

6. Good driving record +$30

Situation 14-Consequences-Medical Expenses

You have received a number of unexpected hospital and doctor bills. See the next slide for the amount you must pay as a result of the decision you made in Situation 8. Be sure to record the amount on your summary sheet.

Situation 14-Consequences-Medical Expenses

Choice A – subtract 470 for medical costs not covered by insurance

Choice B – have no expenses

Choice C – subtract $170 for medical costs not covered by insurance

Situation 15-Random Event-Investment Return

Based on your past investments, you have earned dividends and interest. Select a number to determine the amount. Record the results on your summary sheet.

Situation 15-Random Event-Investment Return

1. +$600

2. +450

3. +150

4. +200

5. +300

6. +550

Situation 16-Consequences-Budget Problems

You have just examined your financial records. See the next slide for the results of the record keeping system you chose in Situation 6. Record the amount on your summary sheet.

Situation 16-Consequences-Budget Problems

Choice A – subtract $20 for bank service charges for not maintaining clear financial records

Choice B – have no expenses

Choice C – have no expenses

Situation 17-Consequence-Investment Return

See the next slide for the result of your investment decision in Situation 12.

Situation 17-Consequence-Investment Return

Choice A – add $280 for current value of stock (loss of $60)

Choice B – add $340 for current value (gain of $40)

Choice C – add $320 for value plus interest (gain of $20)