Life Scenarios

Research Questions

SCENARIO 1: Rent
1. Why is good credit important when renting an apartment?
Then youre more likely to get a loan.
2. How much does it cost to rent an apartment in your area? Provide the zip code,
apartment complex, and price range for the complex.
It cost around 655- 800, 87111, Outlook Apartments, 655- 800.
3. What happens if you cant pay your rent?
You get kicked out of your apartment.
4. How long does an eviction stay on your credit history?
Forever!!!!!!!!!
5. What are the advantages to renting an apartment?
When your lease is up you can go.
6. What is a lease?
A lease is the contract you sign to agree to live in the apartment for a certain amount of time.
7. Why is co-signing required?
Co-signing is required so each person is held to the agreement.

SCENARIO 2: Paycheck
1. What is the difference between gross and net income?
The gross income is the complete income before all of the taxes and deductions while net is
after those have been applied.
2. Why do we pay Social Security taxes?
So there is always money in the system.
3. What are Medicare taxes for?
They are for the medical care of retired people.
4. How much can a high school graduate expect to earn in your area?
They can make around 28000 per year.
5. What are the benefits of using direct deposit?
It automatically grows your savings.

SCENARIO 3: Gas N Go
1. What factors influence your cars fuel economy?
OIl and gas factories
2. What are the benefits of fuel economy?
There are none
SCENARIO 4: ATM Withdrawal
1. What is the difference between paying with cash, debit, or credit cards? List the
pros and cons of each form of payment.
Cash: Easily accessible and useable yet runs out quickly.
Debit:Useable and money is easily added and transfered
SCENARIO 5: Fly Away Cafe
1. Why does the total on the receipt differ from the total amount paid?
Because taxes are added to the total amount
2. What is an appropriate tip at a restaurant?
 Life Scenarios
Research Questions

10 percent of the total amount

3. How much should you tip for various services?
a. Sit-down restaurant:10$
b. Food Delivery:5$
c. Valet:5$
d. Bellhop:5$
e. Housekeeper:10$
f. Taxi Driver: 20$
g. Hair Salon/Barber:10$

SCENARIO 6: Rite Price Grocery

1. List 7-10 effective strategies for saving money on groceries.
Only get what you need
Dont buy food when hungry
Come up with a grocery list

SCENARIO 7: Community Spectrum Expo Center

1. These concert tickets were expensive. What are cheaper sources of
entertainment in your area? LIst 7-10 ideas with links for details.

SCENARIO 8: Mercy Central Hospital

1. What was the impact of going to the emergency room without insurance?

2. What are the benefits of having medical insurance?

3. What are some different ways to obtain medical insurance?

4. The balance in the reserves jar is now negative. What does this mean?

5. What would the cost be without health insurance?

6. What is the deductible?

7. What is an out-of-pocket maximum?

SCENARIO 9: Amalgamated Bankcard Services

1. Why are you unable to pay the entire credit card bill?

2. What are the consequences of not making a payment by the due date?

3. What is a grace period?

 Life Scenarios
Research Questions

4. You have a remaining $260.11 left on this credit card. If your interest rate is
14.95% APR, and you only pay the minimum $20/month, how long will it take to pay off
this card, and how much interest will you be charged?

5. What if you ONLY made minimum payments on the entire $585 balance?
SCENARIO 10: City Parking Authority
1. You write a check for $25, but theres only $2.21 in your bank account. What
does this mean?

2. What are the typical requirements to open a checking account?

3. How do you get money into your checking account?

SCENARIO 11: Overdraft Fee

1. Why are you charged an overdraft fee?

2. The bank could have bounced the check instead. What would have happened
then?

3. Why would an overdaft and bounced check occur?

4. How can you protect yourself from overdraft and bounced-check fees?

SCENARIO 12: Paycheck

1. What is a W-4?

2. What happens if you ask your employer to withhold too much?

3. How do you estimate your taxes?

SCENARIO 13: ATM Wtihdrawal

1. What is an ATM?

2. How do you avoid fees?

SCENARIO 14: Our Town Convenience Store

1. What is gasoline tax?

SCENARIO 15: Bank Statement

1. Why doesnt the bank statement show all of your checking account transactions?

2. Which transactions are missing from this statement?

3. How can you verify the current balance of your account?

 Life Scenarios
Research Questions

4. How can you verify the Current Balance of your account?

5. What does it mean to balance your checkbook?

6. Why do you need to balance your checkbook?

7. How do you balance your checkbook?

SCENARIO 16: Tax Refund

1. What might you do with a tax refund?

2. What are the benefits of an emergency fund?

3. How large should your emergency fund be?

4. Is it beneficial to have a large tax refund?

SCENARIO 17: Trader Moes

1. Higher-quality food costs more. What are some ways to eat healthy on a budget?

2. Junk food might be the cheapest, but is it the best choice?

3. Where can you shop near the apartment you found in scenario 1?

4. What is the unit price and where is it found?

SCENARIO 18: Auto Loan

1. How is the monthly interest payment on an auto loan calculated?

2. How is the monthly principal payment calculated?

3. How long will it take you to pay off this car loan?

4. How much will you be paying in interest over the the life of the loan?

5. What happens if you fail to make your auto loan payments?

6. What happens when you have a poor credit score?

7. What is the difference between Direct Lending and Dealership Financing?

8. What is the difference between buying and leasing a car?

 Life Scenarios
Research Questions

SCENARIO 19: Paycheck

1. Rolands Bookstore pays its employees weekly. On what other pay schedules to
employers operate?

2. How much in withholdings will be taken from my paycheck?

SCENARIO 20: Twin Oaks Factory Outlets

1. Buying clothes is fun, but also expensive. What are ways to get quality clothing
for less?

SCENARIO 21: Aristotles Garden

1. It can be difficult to eat healthy food while traveling. What are some ways to avoid
eating junk food during trips?

2. Is it possible to eat healthy at fast food restaurants?

SCENARIO 22: Tesla Electric Company

1. How can you reduce the amount you spend on utilities each month?

SCENARIO 23: The Hit N Run Truckstop

1. Transportation costs (fuel, maintenance, etc.) are among the top expenses for
young people. How can you keep from going broke when you need a car?

2. What is a realistic first car for you?

3. What basic maintenance is required for the car you chose in question 2?

SCENARIO 24: Horizon Wireless

1. Going over your plan limits can be expensive. How can you avoid that mistake?

2. What do you need to think about when choosing a mobile plan?

3. What is the difference between a postpaid and prepaid wireless plan?

4. Choose a wireless company and one of their wireless plans. List the company
and the details of the plan. Why did you choose this company and plan?

SCENARIO 25: Paycheck

1. Rolands Bookstore pays you an hourly wage. What other forms of pay can
employees receive?

SCENARIO 26: Super-Mart

1. What is sales tax used for?
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Research Questions

2. How much is sales tax in NM right now?

SCENARIO 27: Bank Statement

1. Which transaction is missing from this statement?

2. Why doesnt this check appear on the statement?

3. Your checking statement says you have $867.40 available in your account.
Banzai says you have $659.80. Which is right? Explain.

4. What is identity theft?

5. What is identity fraud?

6. How can you fall victim to identity theft or fraud?

SCENARIO 28: Always-Safe Insurance

1. Why is it important to be personally insured?

2. What are the penalties for driving without auto insurance?

3. What is the difference between liability and collision insurance?

SCENARIO 29: Diegos Taco Shop

1. Compulsion or addiction spending is dangerous. How much could a bad habit
really cost you?

2. How expensive is a nicotine addiction?

SCENARIO 30: Amalgamated Bankcard Services

1. Because you made only the minimum payment, there was an interest charge on
this bill. How can you avoid this in the future?

2. The total balance on this credit card is $442.42. How long will it take you to pay
the card off in full if you only pay the minimum monthly payment of $20?

3. Why is the monthly credit card statement important?

4. How is the minimum payment calculated?

5. What is APR?