Question

Buy it? Pass it up? Charge it? These are the questions that should occur to you each time you are thinking of buying something. How do you decide? You should ask yourself a series of questions — to test if and how to make the purchase.

What would you do?

Kirsten is a freshman at Southern Maine Community College. Her parents gave her a credit card, but she is supposed to use it only for emergencies. She is in the mall one day and sees the perfect dress to wear to the Welcome Back BBQ on Thursday in a store window. The price tag reads $125, but the store is running a One-Day-Only Sale, all items are 25% off the ticketed price. Kirsten’s grandmother, a dressmaker, has offered to make Kirsten's dress, and Kirsten has only $50 in her savings account. What should she do?

What is the need?

What are the alternatives?

What’s the money situation?

What are the disadvantages of charging the purchase?

Answer 1

She should pass it up.

The need is to get a dress to wear to the welcome back BBQ.

The alternatives available are as follows

1. She can buy the dress and charge it.

2. She can pass it up and take the dress from her grandmother.

The money situation is that she has only $50 in her account and she is a freshman so she will have to charge the remaining to her credit card if she decides to purchase the dress from the mall.

The disadvantage of charging the Purchase is that she will firstly lose her savings. Secondly she will be liable to pay the remaining money and will also be charged interest on the balance.

Considering these points she should pass up the dress and take the same from her grandmother.