In the "All About You" feature, we introduced the idea that being financially literate has a major impact on our ability to meet our financial goals and even on our health and happiness. We all face financial decisions each day. Some of these decisions are small and others are critical. Making the right financial decisions is important to your well-being. Following are three financial decisions that you as a student will likely have to make.
1. You have to pay for your tuition, books, and spending money during college. You are trying to decide what kind of summer job you should apply for and whether or not you need to work part-time during the school year.
2. You need to have transportation to get back and forth to college each day. You are trying to decide if you can afford to buy a second-hand car and pay for parking or whether you should use public transit. You will have to borrow money to purchase the car.
3. You will be graduating this year and have received job offers from two different companies. You are deciding which company you should work for, and you want to accept a position in a company that is financially stable and has growth potential.
Instructions
(a) For each decision, indicate what financial information you would want to have in order to make an optimal decision.
(b) Based on what you have learned in Chapter 1, how will learning about accounting help you with the above decisions?