Case Studies, Ch 5 - These are case studies that are mandatory to complete. PDF

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These are case studies that are mandatory to complete....

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Cheyenne Francis Professor Kevin Bradford Personal Finance 120 21 February 2017 Case Studies, Chapter 5 Mario and Aaliyah’s Future 1. If Mario and Aaliyah does not talk about their finances right now, their first year of marriage could be hard. It seems like Mario likes to save and also free himself from debt. Aaliyah, on the other hand, has a car payment, credit card, and no savings. This is a big difference. Mario will never be able to save money because Aaliyah will always be spending it on her debts. This will lead to a lot of fighting and difficulties in their marriage. 2. Aaliyah would be much better off if she would stop using her credit card to pay for everything and use her own money to buy her things. This way she would be able to hold on to the money she makes and can start saving. She may be able to pay off her balance now, but if she loses her job she will be stuck with her debt and may get herself into a bad situation. 3. If Mario does not have to go into more debt to buy a ring for Aaliyah, then he should go ahead and buy the ring. As long as he can still make all of his payments and does not have to get into his emergency fund for it, he should not wait. 4. Since Aaliyah does not know how to save, she may try to get into Mario’s emergency fund for things that are not emergencies such as clothing or food. This could cause some problems in the relationship. Sherry and Her Parents

1. Sherry’s lifestyle will be completely different now. She was used to going out and getting what she wanted and having all the new things with no thought of how much she was spending. Now she will have to budget her money which means she will not be getting the things she was. Her relationship with her parents will change as well. Sherry will be very upset with them, and she may not speak to them because now she has to figure out a way without them, which is something she has never had to do. 2. Sherry should be very grateful that her parents let her go such a long time without having to worry about money. She should not be upset with them because her father lost his job. She should keep a relationship with them and talk to them about how she can support herself. 3. To avoid this, Sherry could have started supporting herself in small ways a long time ago. When she started college, she could have started a small job so she could have been paying for some of her things so it would not be as difficult as it is now. 4. I would tell Sherry that she could get rid of some things to start off. She could sell her car; this way she would have money to save. I would also tell her to cut back on her spending and try to only buy things she needs and not things she wants. Reggie and Giving 1. Reggie could do a lot of things to make a difference in poverty. The number one thing to do is to give his time. He could volunteer at a local soup kitchen or any food program. He also does not have to donate money; he can donate clothes or food. These types of things go directly to people in poverty and can make a big difference. 2. To help those at the poverty level Reggie does not need any money. There is a lot more things he can give other than money.

3. Right now, Reggie can put back some money to donate to those in poverty. Later, when Reggie gets out of school he will get a job and begin to build his wealth. When he starts to do this, he can begin donating money to organizations that deal with poverty and help fight it....