Some More Money Matters

Anna is twenty-six. She lives with her mother who is helping her raise her two children. Anna works thirty hours per week, goes to school, and likes to spend time with her friends on the weekend. Most of her friends are working, and spend their money on clothes, cars and accessories. Several have recently purchased cellular phone services. They use them to stay in touch with one another throughout the day.

Anna recently received an offer in the mail from one of the cellular providers. The offer was for a free cellular phone. It is the same model that her friends have. The offer also included free activation, and a flat charge for the first month of $20.00 for the first five hours of use. Above five hours and in subsequent months, Anna would pay $19.00 a month and $.26 a minute over 120 minutes for calls she initiated.

Anna thinks it would be good to have a cellular phone because her mother could get in touch with her anytime and anywhere, she could keep in touch with her friends, and besides the phone is free.

Should Anna accept the free phone offer? Why?


Mildred's TV is acting up again. It was a used one that her ex-boyfriend had left behind when they split up. It was about the only thing he had that was of any value. Mildred wants a new 27 inch color TV. She looks in the paper and shops the store in the mall all the time. Most of the really good sets are running between $350 and $500.

A neighbor downstairs has heard Mildred talk about wanting a new TV. He has told her that he has a friend who can get brand new TVs at a really good price. He said he could get her any kind she wanted for $150.

When Mildred asked how can he do that. The neighbor said his friend worked on the coast and had a way of getting this kind of stuff cheap. His answer was somewhat evasive, and Mildred is slightly suspicious. Nonetheless, she still wants a new TV and she could afford $150.

Mildred has asked you for your advice. What would you tell her? Why?


Annette's two boys need new shoes. They have been bugging her for weeks for some like other kids in their class have. Annette has looked at these shoes. They are very expensive - almost one and a half times the cost of similar quality shoes. She has taken her sons shopping to try on shoes. Annette really cannot afford to spend this much money on shoes, but she knows they are what her sons really want. She is trying to decide what to do.

Should she go ahead and buy the shoes and work it out somehow?

Should she get shoes for just one of the boys right now and promise the other one a pair later?

Should she buy them a quality shoe but not that brand?

Should she come up with some other way to get the shoes?

What should Annette do? Why?