EDUC 1300 Chapter 3: Case Study
During Jennifer's first year of college, she and her friends made a weekly trip to the mall. Most
of the time they would just hang out, but Jennifer had applied for several store credit cards. It
didn't seem like a big deal. She would buy a few things each week, and the card made it really
easy. Jennifer had a work-study job on campus, but with all her other bills, she was having a
hard time making the card payments. At the end of the semester she was $2,000 in debt and
was two months behind in making the minimum payments. - Answer N/A
How could Jennifer have avoided this situation? - Answer Used a debit or prepaid credit card
when shopping, so she would not be able to spend more than she could reasonably afford.
Which is a possible outcome of Jennifer's careless financial behavior? - Answer She might not
be approved for future student loans.
What is one thing Jennifer can do to correct her situation? - Answer Meet with a trustworthy
financial advisor who can help her establish a plan to pay off her outstanding debt and teach
her how to use credit cards responsibly.
In the future, Jennifer could use a budget to help her better manage her money and live within
her means. Which is NOT a fixed expense Jennifer might include on her budget? - Answer
repair costs for her car
During Jennifer's first year of college, she and her friends made a weekly trip to the mall. Most
of the time they would just hang out, but Jennifer had applied for several store credit cards. It
didn't seem like a big deal. She would buy a few things each week, and the card made it really
easy. Jennifer had a work-study job on campus, but with all her other bills, she was having a
hard time making the card payments. At the end of the semester she was $2,000 in debt and
was two months behind in making the minimum payments. - Answer N/A
How could Jennifer have avoided this situation? - Answer Used a debit or prepaid credit card
when shopping, so she would not be able to spend more than she could reasonably afford.
Which is a possible outcome of Jennifer's careless financial behavior? - Answer She might not
be approved for future student loans.
What is one thing Jennifer can do to correct her situation? - Answer Meet with a trustworthy
financial advisor who can help her establish a plan to pay off her outstanding debt and teach
her how to use credit cards responsibly.
In the future, Jennifer could use a budget to help her better manage her money and live within
her means. Which is NOT a fixed expense Jennifer might include on her budget? - Answer
repair costs for her car
