...teenagers just over eighteen, therefore the problem of overspending with credit cards exists. If fact, there are three major reasons that lead to overspending of credit cards among teenagers. First of all, most teenagers don't know how to manage their own finance. A research report by Sallie Mae (2009,p2) shows that, there is a recommended 10% of income as a payment of debts for teenagers. However the research has investigated that there are 30% of income as debts payment in reality among teenagers which is $3173 US dollars on average. It also states that teenagers are mismanaging their credit cards by overspending with it and they are unable to pay for the debts in result. To conclude, teenagers just spend all or even more then they have with the help of their own credit cards, resulting in overspending and debts. Secondly, not knowing the serious consequences that bring by overspending among teenagers is also a major reason that cause overspending. A research report by Xiao, J.J & Tang, C.Y & Serido, J & Shim, S, (2011,p4) try to investigate factors that affecting risky borrowing behavior on over 2000 first-year student that have their own credit cards. The result shows that financial knowledge is negatively related with risky borrowing behavior and positively related with credit card debts. Furthermore, over 60 percent of students don”t know the consequences bring by credit card debts. Actually, overspending may lead to serious consequence towards future development...
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...Kenneth Bernville Mrs. Sparks DRE 098 RD4 7 November 2014 The crisis in America Spending more money than people can afford is a common problem when easy credit is available. Most people when spending money sometimes don’t think whether it is a want or need. The problem in America today is that so many people take money for granted because it is an easy access knowing it should be used for important things in everyday living. Overspending is caused by too much shopping, vacationing, and holidays. Some people become habitual shoppers. On a regular basis flyers are sent to most homes advertising sales of all types. Clothes, shoes, furniture, groceries, and more are repeatedly luring consumers into buying more and more. Some people will take their last bit of money and go shopping, buying things that are not important, and neglect their monthly bills. Over shoppers go Strolling through the mall, or shopping online spending hundreds of dollars, stores with nothing particular in mind, simply looking for great bargains and things that happen to think that the money was well spent. Some people have an obsession with cars and buying unnecessary parts and accessories like window tinting, rims, and expensive paint jobs that can cause people to go into debt. In addition a person can go put 2,000 dollar rims on a car and the car is not worth that much. Vacation is a time of ultimate pleasure. Families come together to relax, spend quality time together, and just enjoy themselves...
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...Overspending One possible effect of providing your teen with a credit card is the potential for large debts. Swiping a plastic card in exchange for goods or services can prove too much of a temptation for some young people. Also, spending money on the Internet is quick and simple with a credit card. Teens can easily access online shopping, Internet gambling and other spending activities. According to Todd Mark, President of the Consumer Credit Counseling Service, in an article on the Connect With Kids website, online shopping allows kids to spend excessively because it doesn't feel "real." This is because it may take days or weeks for the items to arrive and teens may forget what they've purchased in the interim. Anxiety and Desperation Credit card debts can bring about severe anxiety for young people. While making the purchases might have had little psychological impact on the teens, those who have to pay the monthly bills connected to their credit cards might experience negative feelings. A 2008 report by Sallie Mae on "How Undergraduate Students Use Credit Cards" discusses a survey of students in which 45 percent stated that paying credit card bills brings them “high levels of anxiety," while 24 percent stated that credit card bills bring about a feeling of extreme anxiousness. In extreme situations, teens might do things they wouldn't normally do out of desperation. For example, in a May 2010 article on the Daily Finance website, New York Bankruptcy Court Judge, Honorable...
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...Cash Versus Debit Cards When making a purchase, the situation that crosses a person’s mind if using cash was a better option than using debit. In today’s society, numerous individuals use their debit card to make a purchase no matter how big or small. It would be difficult to track the amount of money a person spends if they are constantly using invisible money. The draining process from constant surveillance over electronic bank statements can be untimely, especially if those individuals are on the go. Carrying cash on a person is more effective than a debit card because it helps maintain an awareness of money spent, limits overspending, and prevents unnecessary fees. For instance, a person immediately notices how much cash they are carrying in their wallet. This makes them conscious of what available funds they actually have. Pulling out the right amount of cash is done when it is decided how much is appropriate for the week. Although people may worry about spending too freely, a psychological thought barrier prevents them from doing what is best. Being conscious of how much cash is being carried tells him or her how much they are allowed to spend. This now means that every person will now think twice about a purchase. Not everyone has time, or patience to access their account through computers or their cell phones, especially during a transaction. Using an electronic form of payment will not help a person realize that small transactions will add up. Constant use...
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... computer, internet and social media, and overspending money by taking personal loans, overuse of credit card and overdraft in bank account. Major issue facing adolescence is related to overspending and iGeneration. iGeneration refer to anyone born after 1990s. `ì` represent technology used by children and adolescents like iPhone, iPad, iTunes and iPod. Technology is very important for iGeneration. Young people in the 1960s had fewer option regarding education, career opportunities and entertainment compare to young people today. There are so many negative impact of technology and government overspending of money on children. First of all, Technology cause many health related problems in teenagers such as weak eyesight, obesity due to less physical activity, decreased memory power by using digital technology and back pain(. Technological device influence social relationship because children addicted to gadgets and social media like Facebook, Twitter and Instagram. They don’t have time to sit with their parents and relatives. Technology have negative effect on education. Children waste their precious time on social media without worry about their studies. Technology effect writing skill of youngsters because children avoid hand writing and most of the time they use text messing. While messaging no body care about spelling, grammar and try to use short form. Second of all, government overspending, today young people...
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...Introduction This paper will discuss the two main causes of state budget deficit; overspending and not enough tax revenue as well as the impacts states continue to feel from the recession. The paper will also make recommendations to resolve state deficit. Overspending Figure 1 Figure 1 Currently, government spending in many states is much higher than tax payers can sustain. A major factor to state overspending is the forgetfulness of state officials that the government is supposed to exist to serve citizens not the other way around. One state in particular, California, is a prime example of state overspending. Figure 1 demonstrates California’s Total Expenditures from 1995-2012. There are five main areas where the California legislature failed their citizens when it comes to spending. The first area is their complicated institutional framework. Having a complicated institutional framework increases the cost of operating the government. For example, California pays for multiple administrators to do the same type of work in different departments. They also have additional administrators to coordinate the overlapping work of the different departments. Another area where California fails is their lack of coordination for their health and human services, this lack of coordination results in the second largest source of California’s government expenses. There are 33,000 employees in the health and human services organization of the government, $83 billion...
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...California: Assessment of a Diverse Community California, also known as the golden state and a melting pot of the United States because of a diverse culture and a large immigrant population. To some Americans, it is a paradise and an ideal tourist destination because of sunny weather and easy access to oceans, mountains, and deserts. California integrates foods, languages, and traditions all over the world. According to, People of California 2006 census, California has an appraised population of 377,172,015 and is the thirteenth quickly-growing state. The population consists of 61.9% White American, 6% Black or African American, 10.4% Asian American, 18.4% other race, 1.7% American Indian, 2.1% mixed race, 38.5% are Hispanic or Latino, and 40.3% of the population is non-Hispanic Whites. The leading industries of California are agriculture, manufacturing, biotechnology, and tourism. In terms of politics, Californians are more liberal, especially those who live in the inland states. Based on California Political Parties there are six political parties, the American Independent, Democratic, Green, Libertarian, Peace and Freedom, and Republican. California experiences frequent and devastating wildfires. During the last decade in 2003 and 2009, California experienced devastating wildfires that affected countless lives. Thousands of families were left homeless and hundreds of lives were lost. California officials have made strict laws against unsafe practices that may cause accidental...
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...are challenges that may arise within the organization when implementing a budget and budgetary controls. What could go wrong? What are three possible risks? Overspending on a budget sometimes can be bad forecasting on part of the budget manager. Incomplete information or just poor forecasting can lead to an underestimation and/or unreal optimism of costs, expenses and revenues. Money Cares Investment Corporation has been overspending in market supplies, transportation, and workshop items. There are risks that Money Cares Investment Corporation should be aware of. Because of this management may not be able to adequately control the budget. It is certain that the investment specialists are screwing up big time. One risk that is possible is that when purchasing marketing supplies, the funds are misappropriated. Transportation charges being over-billed is the second risk. Transportation can have charges with excessive amounts. The last risk could be inflated hospitality bills and uncontrolled spending on the workshop items. What must happen in order for the company to succeed? In order for Money Cares Investment Corporation to succeed, they must curb their spending before they encounter serious financial difficulty. One thing they must do is admit that they have a problem and identify the problems with their overspending and start working on a solution to the problem. Money Cares Investment Corporation must make profits. Their investments need to be sensible to control costs....
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...Variance Analysis A manager of a variable hospital department has many responsibilities. The manager is accountable for budgeting and to protect profits. The financial manager is responsible for guarding overspending and generating profits. They are active in the budgeting process throughout the fiscal year. The budget department manager communicates with other managers, and accounting departments concerning budget issues, financing, and concerns in the organizations departments. Sometimes situations occur whereas payroll salaries are high and supplies are lower than planned and budgeted. The budget manager is responsible for providing feedback about finances, revenue, and any potential variances in the budgeted costs. This essay will be based on a scenario of salaries that were higher and supplies lower than initially budgeted. This paper will explore variances in the scenario mentioned earlier, and explain the relationship between variance reporting, interpreting variance reporting results, and the results of performance within a health care organization. The hospital variable department has experience a case in which employee salaries are higher than budgeted, while the supplies are lower than initially budgeted. This is the result of an epidemic of asthma patients who were admitted to the hospital over the last three months. The hospital approved overtime to assist in the growing number of patients and to accommodate their needs. In the process of caring for patients more...
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...particular, give consumers the ability to purchase goods or services with little effort. Simply by making a phone call or opening a laptop, a product can be bought and even shipped to the front door just by entering those little raised numbers on the front of the card; just ask my friend Emily! She ordered an enormous new 70in. flat screen TV, without even needing to go into a store. The funny thing is she doesn’t watch or own a TV. Not only did the store allow somebody to fraudulently use her credit card but it also allowed the TV to be shipped to an unauthorized location. That’s the rub! Credit cards may seem great, and they are for certain things, however, there is an obvious security threat when owning one. The temptations for overspending and the high interest rates that credit card companies add create other issues that cause potential problems for consumers as well. First of all, fraud can be a cause for concern when debating whether or not to get a credit card. It is becoming easier for criminals to acquire card numbers without ever even meeting the person they stole it from, and as technology advances, they devise new and devious ways to beat the system. For example, criminals have created ways to steal card numbers with machines that Luchsinger 2 can read a card number just by standing behind a person in line at a coffee shop. There are also reports of stolen card numbers being sold on the internet. Personally, I get concerned every time I use my card in...
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...Part 1: Background info In 2004, Lego found itself losing up to $1 million dollars a day (page 39), a position no big company wishes to find itself in. It had been determined that new leadership was vital to the company’s survival. As a result, Jorden Vig Knudstorp took over as CEO five years later. Knudstorp immediately noticed poor internal organizational structure that ultimately resulted in frustrated retailers and less shelf space (page 39). Knudstorp successfully cut production costs by creating new designs. He also successfully introduced new markets for Lego products, such as movie collection and video game products targeting adults and girls. From within the organization of the company, Knudstorp successfully shifted the culture away from ineffective and costly innovation and geared more towards profit. Some of these organizational changes included incentives for developing cost cutting methods, innovation and sales. He also took the initiative to create new markets in the virtual world through video games and movies (page 40). With these changes brought about by Knudstorp, Lego found itself in a situation where they were successfully developing new technology, new methods and a more simplified information of enterprise systems, all which were cost effective and ultimately brought the company back to success. Part 2 (discussion questions at the back of the book) The key change in business strategy was to cut costs and gear more towards profit. The objective was...
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...Task 6 P6 An organisations break-even point is the point when income is equal to expenditures resulting in neither profit or loss. The break-even point is significant to organisations as public and not-for-profit sectors usually aim to achieve this point, whereas private organisations wish to earn above this point. Coca Cola Café break-even table The Coca Cola Café’s break-even table displays the business minimum and maximum output in a 30 day period along with the financial data associated with each unit of output. The data acquired from this table can be used to plot points on the break-even graph. |Unit of output |Fixed costs |Variable costs |Total costs |Total revenue |Profit / loss | |0 |£39,130 |£0 |£39,130 |£0 |- £39,130 | |500 |£39,130 |£3580 |£42,710 |£7750 |- £34,960 | |1000 |£39,130 |£7160 |£46,290 |£15,500 |- £30,790 | |1500 |£39,130 |£10,740 |£49,870 |£23,250 |- £26,620 | |2000 |£39,130 |£14,320 |£53,450 |£31,000 |- £22,450 | |2500 |£39,130 |£17,900 |£57,030 |£38,750 ...
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...[1] The U.S. is 5% of the world’s population, yet we use 30% of the world’s resources. [2] What two things do we do with the little leisure time we do have? The two things we do with the little leisure time we do have is watch tv and shop. [3] What is the difference between perceived obsolescence and planned obsolescence? Give examples. Planned obsolescence, “Designed for the dump” which means companies create stuff that’s designed to be useless and breaks easily so we can throw away to buy new products. For example, plastic bags, mops, camera and computer software Perceived obsolescence brainwashes society to throwing away stuff that still have value by changing the look of the same item they may have. If you have a one year old ipad, a newer ipad mini comes out with the same processor and picture display, but because its smaller and newer it lures consumers in. A couple examples of perceived observations are fashion, video games, computers, and phone. [4] Annie Leonard says that “we aren’t paying for the stuff we buy.” What does this mean? Products that are made in factories aren’t paying the full cost of production. Cost of productions are externalized to undeveloped countries. Which causes pollution in the air that they breath that eventually harms them. So, the products we buy the workers’ pay for through their health insurance essentially. [5] Briefly explain why our primary identity in the U.S. now one of consumers. Use information from the...
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...Tom Emory and Jim Morris strolled back to their plant from the administrative offices of the Ferguson & Son Mfg. Company. Tom is the manger of the machine shop in the company’s factory. Jim is the manager of the equipment maintenance department. The men had just attended the monthly performance evaluation meeting for plant department heads. These meetings had been held on the third Tuesday of each month since Robert Ferguson, Jr., the president’s son, had become the plant manager a year earlier. As they were walking, Tom Emory spoke. “Boy, I hate those meetings! I never know whether my department’s accounting reports will show or bad performance. I am beginning to expect the worst. If the accountants said I saved the company a dollar, I’m called Sir, but if I spend even a little too much- boy do I get in trouble. I don’t know if I can hold on until I retire.” Tom had just been given the worst review he had ever received in his long career with Ferguson & Son. He was the most respected of the experienced machinists in the company. He had been with Ferguson & Son for many years and was promoted to supervisor of the machine shop when the company expanded and moved to its present location. The president (Robert Ferguson, Sr.) had often stated that the company’s success was due to the high quality of the work of the machinists like Tom. As a supervisor, Tom stressed the importance of craftsmanship and told his workers that he wanted no sloppy work coming from his department. When Robert...
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...According to Hopwood (1974) budget information may be used in three different ways. DFS is believed to use budget constrained style . They are having their concern about the increasing of overhead cost. In the next year, their main target is keep costs under control. The director also said that the managers are going to overspend will be penalised in some ways including the posibilily of losing their job Hofstede ( 1968 ) indicated that only budget level within limited zone really improve performance, outside the zone ( 1 and 6 ) budget do more harm than good. * Zone 1 : Too Slack - - that would lead to overspending- make managers no real effort to achieve outcome * Zone 6 : Too Tight-- it prevents overspendings- make managers very difficult to achieve , destroys staff motivation APPLY to the DFS * This year, the company is trying to add a small increment to each department’s actual spending for the previous financial year (to account for inflation)… DFS believed they are having a good budget level now that don’t need to change much Zero-based budgeting is an approach to planning and decision-making * A ZBB makes leaders to identify what they need for the next year and how much they need to reduce cost as much as possible. * APPLY TO DFS : * MR Jones want to set up a broader set of indicators . This shows that he want to create a new indicators that can evaluate accurately the budget of the business. \ The first goal is employees...
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