NAME: JAMAICA B.

ASUNCION
SECTION: 12 – ABM B

BUSINESS FINANCE
Quarter 2 – Module 6 :
Philosophy and Practices in
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Personal Finance
Lesson 1: Money Management
Philosophy

What’s More
Review the credit scenario below and determine the positive and negative
impact the decision may have on the person's financial future.

Savannah has heard that opening a lot of credit card accounts is a good way to
build credit. She currently has five credit cards but is sometimes forgetful in
paying her bills on time and usually has a balance on each card. Her favorite
store is offering a P500 coupon on her next purchase, with the promise of more
coupons in the future, if she opens a credit card. She decides to open the store
credit card to get the discounts.

Is this a good or bad debt move? Why?

After opening the store credit card she will now have a total of six credit cards;
the sixth credit card she has taken has a promise of future value due to the
discounts promised therefore this is a good debt move only because of the
discounts promised in her financial future. There is a downside to this, she has
been struggling to pay the credit card bills on time therefore adding a sixth one
may even worsen the situation; you could say that this is a bad debt move too
because she will likely be straining in future to pay for all those credit cards.

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 In conclusion, there are upsides and downsides to the choice she makes; in
this scenario her choice is both a bad debt move and good debt move.

Assessment
1. C 6. C 11. B
2. D 7. A 12. A
3. B 8. B 13. D
4. D 9. B 14. D
5. A 10. A 15. A

Additional Activities

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