5 Scenarios

Use these five scenarios to see what kind of spender you are.

Scenario 1: No idea how much I have

When you go to the ATM to get money for lunch, you are shocked to see that you don’t have any money left! According to your budget, you should have at least $100, so you’re not sure what happened.

You go into the bank and get a teller to print out your statement. You get paid on the 15th of every month. Your rent check was cashed, and so were three other checks for bills. You thought you had enough money from your check last month to carry you through these few weeks, but you forgot about that concert and dinner out that one night. You don’t get paid again for another week.

What would you do?

If you are a smart spender, you’d decide not to have any lunches out today, tomorrow, or the rest of the week. You’d call the electric, gas, telephone, and credit card companies and ask them to move your due date closer to payday so you can pay your bills regularly and on time.

If you are a so-so spender, you’d realize that you made some bad choices last month. You have to work harder to control your spending. You don’t have any money to spend and now you'll have to pay your cable bill late.

If you are a silly spender, you’d look to borrow some money. You’d think about getting that credit card out of the drawer so you can charge food and get a cash advance.

Scenario 2: Can't I splurge occasionally?

You love all kinds of music and are always looking for something new to listen to. During lunch, you visit the local record store to look at CDs. There’s so much to choose from – before you know it, you have 10 CDs in your hands. You have budgeted $75 a month in entertainment expenses, but you have $120 worth of CDs in your hands.

What would you do?

If you are a smart spender, you’d decide that you said you wanted to spend $75 a month on entertainment and you have to stick to it! You’d put a couple of those CDs back and buckle down!

If you are a so-so spender, you’d decide to get all of those CDs today, but you can only buy $30 worth of CDs next month. You figure you’ll get back on track with your budget next month.

If you are a silly spender, you’d decide to increase your entertainment budget to $80 or $100 a month. You figure you’ll take the money out of another expense category in your budget.

Scenario 3: Put it on my credit card?

When you get your credit card bill, you’re shocked and discover a big problem. You forgot about all those times you didn’t have cash last month and used the card instead. You charged a few lunches and dinners, a couple of CDs, and a pair of shoes. Your credit card bill is $225, much higher than your budgeted amount of $150

What would you do?

If you are a smart spender, you’d bring lunch every day and use those savings to pay as much as you possibly can on this month’s bill. You’d put the credit card away and pay the balance off over the next two months, and you make sure never to get in this position again.

If you are a so-so spender, you’d realize that you really messed up last month, so you should pay off the credit card balance in full. Otherwise, those interest rates will keep you behind on paying that card off. You’d borrow money from a friend, not charge anything else, and be more responsible next month!

If you are a silly spender, you’d decide that it is a credit card and your balance is pretty low. You’d make sure you watch what you spend and pay off a little more than you originally budgeted for over the next few months.

Scenario 4: I don't get paid for a week!

Before heading into the office every day, you get a cup of coffee. You have budgeted $65 a month for coffee and are on target with your coffee spending. However, you’ve overspent in other areas of your budget and you’re running out of cash before payday. You also realize you haven’t put any money into your savings account this month.

What would you do?

If you are a smart spender, you’d decide that you are spending too much in other areas and that your coffee expense is something you can control. Stop drinking expensive coffee – get some from the store! Use the money you have left over and put it in your savings account!

If you are a so-so spender, you’d ask if really need that expensive coffee every day. It is good, but you should think about cutting back to a few times a week if you haven’t saved any money this month!

If you are a silly spender, you’d decide that you’re sticking to your coffee budget, so you should keep your small but well-deserved luxury. You’ll just work on controlling your spending in the other areas. It may mean skimping on some other things, but you can keep the coffee.

Scenario 5: Look at that sale price

You have been looking for a new stereo. One day after work, you stop by your favorite electronics store to check out sale prices. The stereo you’ve had your eye on is on sale, almost 50% off. You’ve saved a little money, but not as much as you wanted. If you miss the sale, you think it will cost you more later. Should you buy the stereo now and get big savings, or should you wait?

What would you do?

If you are a smart spender, you’d decide that you have to budget for the big purchases! If you don’t have the money, you have to wait.

If you are a so-so spender, you’d decide that you can’t afford this stereo, but maybe you can find one that’s cheaper.

If you are a silly spender, you’d figure that’s smart shopping! You’d see if you can get financing in the store, or put it on your credit card and pay if off later.

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