PF:1.4.4 Lesson: Making Large Purchases
Using the guidelines above for spending choose all of the tips that can help you be a wise shopper.
- consider all the purchase options and costs before buying something expensive -track expenses so you will know where your money is going - save money in special accounts so you are prepared for a large expenditure -be a good steward of all your money and possessions -when you make a mistake when spending money, learn from your mistakes -pay cash for items that cost less than $5.00
Make some wise choices. Consider each scenario below and decide what would be either the best option in each situation or the correct answer to each question. 1.Larry and Martha have an account set up at their credit union with $50 added to it each month from Martha's paycheck. She has been having this done each month for ten months. How much is in the account? 2.Bob drives a used car that gets great gas mileage and so far he has not had to have any major repairs performed on the car. His mechanic told him the car should be good for at least another 2-3 years. Several of Bob's friends have new cars and have encouraged him to buy one, too. Bob just started a new job, and he is not sure if he will keep the job because recent company layoffs. What do you suggest for Bob? 3.Laura bought a laptop four years ago, and she needs to replace it with a new one. The one she is looking for and fits into her budget costs $499.00 and will perform all that she needs it to do. Another laptop with a bigger screen and other options costs $699.00 but will not perform any faster or do anything more than the cheaper one can do. The store offers a service plan that protects against product defect and accidental damage for $99.00. What is the best decision for Laura? 4.Last week Samantha had to get her refrigerator repaired for the fourth time. It is no longer under warranty and each visit from the repairman has been averaging $100.00 a visit. She can buy a new refrigerator at a local scratch and dent warehouse store for $599.00 with a 5 year warranty. She could pay for half of it with cash, but would have to charge the rest on her credit card, but could pay it off in three months. What do think is the best choice for her? 5.Samuel wanted to go on a mission trip with his church youth group. The trip cost $1,700.00. He has $900.00 saved. His parents will loan him the rest if he will do some repairs around the house before he goes on the trip at the end of the summer. What should he do?
1. $500.00 2. Keep the used car and make sure it is maintained regularly. 3. Buy the $499 laptop with the $99 service plan. 4. Buy the new refrigerator because of the high costs of repairs to her old one. 5. Take his parents' offer and get started on the house repairs.
Amanda wanted to buy some furniture for her new apartment. Because she was bringing most of her furniture from home she only needed a sofa and two chairs. After carefully shopping at several furniture stores she found what she wanted. Below are the possible options for financing her purchase. She plans on paying the cost of the furniture off in three months. Decide on which option would be the wisest choice for her.
Store Credit-paying of in 3 months so interest rate is not a factor