unit 1

Megan’s mother suggested that she was experiencing the consequences of her trade-off regarding a decision she made to purchase a dress for prom. Which situation does Megan mostlikely find herself in for her mother to have made this comment?

• Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress plus most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job

• Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked best

• Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchased the one that was the most comfortable even though it cost $28 more than the other one

• Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress

Ian has been shopping for a different vehicle for the past several months. He needs something reliable and would really like something with a nice sound system. He and his parents have talked about how much he can afford and he plans to stay within the price guidelines he and his family have set. Ian was analyzing the opportunity cost of a trade-off regarding which car to purchase. Which situation best represents what he might be thinking through?

• Ian has been shopping for a vehicle online. He finds something that would meet his needs being sold by an individual near him. He would be able to purchase this car for less than he would have paid for a comparable vehicle at a car dealership

• Ian’s older brother is trading vehicles and offers to sell Ian his used vehicle. This vehicle would meet Ian’s needs and he knew the service history of the vehicle was excellent

• Ian is comparing new vehicles at two car dealerships. He was able to find nearly identical cars at nearly identical prices. One dealership is 20 miles away and the other dealership is 30 miles away

• Ian has found two different cars at a local dealership that meet his needs. The first car has a better sound system than the other. The second car has 20,000 fewer miles on it

Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?

• When he is 70 years old

• Never – it is an ongoing process

• When his money management plan has established high well-being

• When his financial goals have been established

Which of the following is likely to have the least influence on an individual’s values?

• Family

• Media

• Religious affiliations

• Grade average

Jenna wants to improve her financial well-being. Which would contribute the mostto her financial well-being?

• Talking to her friends about how to manage her money better

• Taking a personal finance class to learn how to manage her money

• Opening another checking account to help her organize her money

• Paying her grandma back the money she borrowed to take a school trip last year

Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario best represents the purchase of a need?

• Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair.

• Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.

• Whitney is being inducted into the National Honor Society at her high school. Students have been directed to ‘dress nicely’. Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion.

• Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress ‘professionally’ for one of the tours. She plans to wear her new jeans and a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate.

Erica wants her class project to reflect her values. Which items would be best to include?

• Things that are necessary or essential for life and survival

• Things that are unnecessary but desired which increase the quality of her life

• Things that reflect her fundamental beliefs about what is worthwhile and important to her

• Things that she intends to acquire, do, reach, or accomplish in the near or distant future

Jacob is wondering how he can improve his intellectual well-being. Which would contribute the most to his intellectual well-being?

• Going to the gym three times per week

• Taking a vacation from work

• Challenging himself by taking on a new project at work

• Joining a local service organization

Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?

• Mid‐term goal

• Short‐term goal

• This is not an example of a goal

• Long‐term goal

Which of the following factors is not influenced by values?

• Everything is influenced by values

• An individual’s daily decisions

• An individual’s long-term decisions

• An individual’s financial decisions