Financial Scenarios and Best Practice Answers

You just got your first paycheck. What do you do first? ________

• Save a portion and create a budget.

• Spend it all on shopping.

• Ignore it and wait for the next one.

• Lend it all to a friend.

Your phone screen breaks. Do you use savings or a credit card? ________

• Use savings if available to avoid debt.

• Use a credit card even if you have savings.

• Take out a loan for the repair.

• Ignore the repair and keep using the broken phone.

A friend wants to borrow $100. What do you do? ________

• Discuss boundaries; offer support without risking your savings.

• Lend the money without any discussion.

• Ignore your friend's request completely.

• Give the money and expect nothing in return.

You earn $50 from a side job. How do you divide it? ________

• Example: Save 20%, spend 30%, invest 10%, give 10%, keep 30%.

• Example: Spend 50%, save 10%, invest 20%, give 10%, keep 10%.

• Example: Save 5%, spend 80%, invest 5%, give 5%, keep 5%.

• Example: Invest 40%, save 10%, spend 10%, give 20%, keep 20%.

Your car needs $600 in repairs. You don’t have enough. What now? ________

• Use an emergency fund or set up a payment plan.

• Ignore the repairs and keep driving.

• Borrow money from a payday lender at high interest.

• Sell your car immediately for cash.

You want a new pair of sneakers, but they cost half your paycheck. ________

• Budget for it over time, look for sales.

• Buy them immediately, regardless of cost.

• Borrow money from a friend to buy them.

• Ignore your budget and purchase them on credit.

You get a credit card offer in the mail. What do you do? ________

• Research it first, understand interest rates and terms.

• Throw it away without reading anything.

• Immediately sign up for the card without checking details.

• Give the offer to a friend without looking at it.

You win $200 in a contest. What do you do with the money? ________

• Save or invest some, enjoy a small treat.

• Spend it all on a shopping spree.

• Lend it to a stranger you just met.

• Hide it under your mattress and forget about it.

You forgot to pay a bill. What happens? ________

• You may face late fees, damaged credit score.

• You will receive a reward for forgetting.

• Your bill will be automatically paid by someone else.

• Nothing will happen; bills do not need to be paid.

You need to save for a prom outfit. What's your savings plan?

• Set a goal, save weekly.

• Spend all your money at once.

• Wait until the last minute to save.

• Borrow money from friends and not pay back.