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Chapter 2 Case StudiesName: FORMTEXT ?????Class – Section: FORMTEXT ?????Shannon is a senior in high school and works part time at a local restaurant. Shemakes good tips and always has spending money. Her parents will be paying forher college and her car is already paid for. She knows you are taking a personalfinance class and asks you what she could be doing better with her money. Whatdo you tell her? FORMTEXT ?????Melissa is about to get a $200-per-month raise. She wants a new television andsome furniture. She has $500 in her savings account and figures with her raiseshe will have the cash to make her purchases easily within a few months. Shealso has $1,000 in available credit remaining on her credit card and is thinkingabout using it to buy everything now rather than waiting until she has the money.What would you tell Melissa? Justify your answer. FORMTEXT ?????Jeremy graduated from college two years ago with a degree in communications.He has a good job as a communications specialist making $50,000 a year.Because he took a basic financial class during his sophomore year of college, heunderstands the importance of creating a plan for his money. So he made it apriority to start saving, and he currently has a savings account of $5,000 builtup. He’s motivated to continue putting away money for the future. However, hehas $6,500 in school loans left to pay. He’s already paid off $8,500 since finishingcollege. Just like with his savings, he’s being aggressive and paying more thanthe minimum payments each month. Jeremy plans to be debt-free in 15 months.What advice do you have for Jeremy? FORMTEXT ?????Latisha works as a graphic designer and just got a raise of $100 each month. Shewants to buy a new television and furniture and thinks this raise is enough topay for those purchases. Tired of her hand-me-down furniture from her parentsand her 10-year-old television that she got from a garage sale, she plans to use hercredit card to buy the new things. Currently, she has $500 in her savings account,and she figures that with her raise she can easily do payment plans toward thetelevision and furniture. To make the situation even more tempting, her creditlimit still has $1,000 before it is maxed out. She plans to use the card toward thepurchases so she can buy everything now. What advice would you give Latisha? FORMTEXT ?????Alex is a high school sophomore who recently learned about the importanceof having an emergency fund in her personal finance class. She doesn’t have aregular job yet because her soccer schedule and school assignments take up mostof her time. She would like to start saving up an emergency fund and money forher summer soccer camp. How can Alex earn money without having a regularpart-time job? FORMTEXT ????? ................
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