Financial Responsibility Answers

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?

Which person made the best payment decision for their preferences?

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

Harold and Elaina are being considered for a car loan. The banker looks at their creditworthiness because he wants to be sure the bank will get the loan payments on time and that the loan will be paid back in full. The table below summarizes the information that was on their applications.Application informationQuestionsHaroldElainaHow many years have you had your job?37What is your monthly salary?$2,600$2,250How many credit cards do you have?26How much debt do you have?$3,000$12,000How many times were you late with payments on credit cards in the past year?18Who will get the better loan rate from the banker and why?

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?

Barbara has $70.00 in her pocket and a $20 gift card. Which purchase will she be able to make without having to use her credit card?

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?

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?

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 payment option provides consistency in on-time bill payment?