Case Study – Maria

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Case Study – Maria

Question 1

Maria could have avoided being in the current situation that has torn down her financials through various reasons. For one, she could not have moved to her new apartment as we are made aware that before she was able to plan for every coin, having a savings plan of 50 dollars every month. The savings started disappearing once she settled in her new apartment. It is not that her apartment cost her too much but the consequences of moving led to extra costs. Another way that she could have avoided the situation is consulting with other experienced people who live alone, as they could have helped her with advice on where to start. She says that she doesn’t know where to start but she doesn’t consult and this leads her to make a poor decision. Besides, she is a college student, spending most of her time in school and part-time she is employed, meaning she has less time at her apartment. Through this information, she could maximize her time at work and in school to make friends and have a good time such that she would only go to bed in her apartment reducing the extra costs.

Question 2

Maria will be faced with significant financial consequences as a result of her behavior. To begin with, she will deplete her savings as she no longer saves any amount and uses the savings to pay her expenses. Her expenses escalate every month hitting a double of her monthly spending leaving no amount to be saved. If Maria continues with this trend, she will find herself into debts, having depleted her savings and therefore she will be using her salary to writing off debts. She, therefore, needs to revert from this kind of behavior.

Question 3

To correct her situation, Maria has multiple solutions to choose from based on her problem. One she has to call off her dinner treats with her friends as they are the main causes of her poor spending. She has to focus on her savings and education since she is in scholarship. Another thing is that she has to start making meals by herself so that she cuts the extra expenses made on food as more that 100 dollars have been spent in the restaurants. Maria, therefore, has to consult from the chefs on how to make a one-person meal to avoid wastage. She fears wasting food, but she wastes a lot of money on the same food. Another way is by keeping herself occupied in the apartment to reduce loneliness; she can do this by reading books, watching movies or finding a pet such as a dog to play with and keep her company. Another way she can correct her situation is by moving from her new apartment and go back to her previous settlement as during her stay there; she had everything in control.

Question 4

The poor financial behavior can affect Maria’s college success negatively in that she will lose focus on her education in her bid to collect herself together. She may be faced with depression as she will be left with almost nothing to cater for her bills and savings and therefore keep worrying about her bankruptcy. She doesn’t want to lose her dining friends, but she doesn’t realize her financial strain that may deprive her the peace of mind making it difficult to concentrate on education.