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THE CREDIT CARD GAME BY WSCPA, COPYRIGHT 2007. Rules of the Game  You will work in groups. These will be determined by the color of dot on your nametags.

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Presentation on theme: "THE CREDIT CARD GAME BY WSCPA, COPYRIGHT 2007. Rules of the Game  You will work in groups. These will be determined by the color of dot on your nametags."— Presentation transcript:

1 THE CREDIT CARD GAME BY WSCPA, COPYRIGHT 2007

2 Rules of the Game  You will work in groups. These will be determined by the color of dot on your nametags. Assign two participants on your team to be the “money watchers;” a recorder and an auditor.  Every month your group will be given discretionary funds to spend. You also have a credit card available for use. Your savings account has $500.00 in it. (Noted on the balance sheet)  You will be presented with a series of scenarios in which you must decide if you want to purchase an item and pay for it with cash or credit.

3 Rules of the Game  The decision to purchase items either with cash, credit, or not at all will be decided by a majority vote of the group members.  Voting decisions will be made by either a show of hands, or secretly by using the cards labeled “A”, “B”, or “C” provided. We will decide how to vote ahead of time.  To vote secretly place the card with the letter of your choice under your hand on the count of 3. All cards are then revealed with the majority choice winning.  “Money Watchers” will not vote, unless there is a tie. They will track spending and make sure the group doesn’t spend more cash than is available or exceed the credit limit.

4 Rules of the Game  If a group is short on cash they can transfer cash out of savings for a $5 charge.  If there is a balance on the credit card, an automatic monthly charge will be assessed.  See chart on money watcher’s sheet  Your goal is to live within your means. The group that winds up in the most financially sound situation will be declared the winner.  The formula for determining the winning team will be revealed at the end of the game.

5 Here’s Your Life  Red team: Congratulations! You have just graduated from college with an accounting degree and have a new entry-level position as an accountant in a public accounting firm in Seattle. Your annual salary is $42,000, or $3,500 per month. You’ve decided to move out on your own into an apartment on the outskirts of Seattle in a quiet neighborhood. You are single and have a roommate to cut down on expenses. Your discretionary spending cash is $375.00 per month.

6 Here’s Your Life  Blue team : Congratulations! You have just graduated from college with a marketing degree and have a new entry- level position as a marketing assistant in a public relations firm in Seattle. Your annual salary is $36,000, or $3,000 per month. You’ve decided to move out on your own into an apartment on the outskirts of Seattle in a quiet neighborhood. You are single and have a roommate to cut down on expenses. Your discretionary spending cash is $250.00 per month.

7 Here’s Your Life  Green team: Congratulations! You have just graduated from a technical school with an automotive technician certificate and have a new entry-level position as a mechanic in a body shop in Seattle. Your annual salary is $30,000, or $2,500.00 per month. You’ve decided to move out on your own into an apartment in a less expensive neighborhood in Seattle. You are single and have a roommate to cut down on expenses. Your discretionary spending cash is $125.00 per month.

8 Here’s Your Life  Black team: Congratulations! You have just graduated from beautician school with a certificate in cosmetology and have a new entry-level position as a hair stylist in Seattle. Your annual salary is $27,600. You’ve decided to move out on your own into an apartment in a less expensive neighborhood in Seattle. You are single and have a roommate to cut down on expenses. Your discretionary spending cash is $75.00 per month.

9 Here’s Your Life  You also have a credit card. It has a $2,000 credit limit and an annual interest rate of 23.9%. You may use it as you wish, but be careful. You are not allowed to go over your credit limit, even if it is “just a little” over the limit.  We are now going to take a journey through the following five months of your life. Along the way, you will have opportunities to purchase different items and deal with situations that will come up. Your job will be to manage your discretionary income and credit card usage and maintain a financially sound living situation for yourself.

10 Month 1  Red: You now have $375.00 for discretionary expenses.  Blue: You now have $250.00 for discretionary expenses.  Green: You now have $125.00 for discretionary expenses.  Black: You now have $75.00 for discretionary expenses.

11 Month 1 Do you want to put any money into savings? If so, how much? A:None B:$25.00 C:$50.00

12 Month 1 Do you want to give any money to charitable causes? If so, how much? A:None B:$25.00 C:$50.00

13 Month 1 Your friends have invited you to go to a movie and dinner. The total cost of the evening is $45.00. Do you: A:Pay for the evening with cash? B:Pay for the evening with your credit card? C:Choose not to go out with your friends?

14 Month 1 Unfortunately, the flu is going around and you catch it. If you don’t get well soon, you will lose your job, so you have no choice but to go to the doctor. The doctor visit will cost you $20 for the co-pay. He prescribes medicine that has a cost of $20 for the co-pay at the pharmacy. The total cost to you is $40. Do you: A:Pay for the doctor and medicine with cash? B:Pay for the doctor and medicine with your credit card?

15 Month 1 You hear that getting renter’s insurance for your apartment and possessions is a very good idea. You investigate and find that an adequate policy will cost $100 for the next 6 months. You cannot pay for renter’s insurance with your credit card. Do you: A:Purchase the renter’s insurance with cash? B:Decide not to purchase renter’s insurance?

16 Month 1 Your car’s license tabs are due. They cost $75.00. You must purchase license tabs. Do you: A:Purchase the license tabs with cash? B:Purchase the license tabs with your credit card? The fine for expired tabs is $300!

17 Month 1 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Red: You get your paycheck and have another $375 to add to your discretionary spending account.  Blue: You get your paycheck and have another $250 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

18 Month 1 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Green: You get your paycheck and have another $125 to add to your discretionary spending account.  Black: You get your paycheck and have another $75 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

19 Month 2 Is there a balance on your credit card? Assess fees. For any balance, the minimum payment on your credit card is $20 dollars. Do you: A:Pay the minimum balance on your credit card? B:Pay double the minimum balance on your credit card? C:Pay the entire balance on your credit card?

20 Month 2 Do you want to put any money into savings? If so, how much? A:None B:$25.00 C:$50.00

21 Month 2 Do you want to give any money to charitable causes? If so, how much? A:None B:$25.00 C:$50.00

22 Month 2 You win your company’s tickets to this week’s Seahawks game in the weekly drawing at work. You and your “significant other” have seats on the 50-yard line! While the tickets are free, parking, food, and souvenirs aren’t. These items actually cost you $80. Do you: A:Pay for the parking, food, and souvenirs using cash? B:Pay for the parking, food, and souvenirs using your credit card? C:Sell them to your friend for $50- because last time you tried to scalp tickets you got a $100 fine.

23 Month 2 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Red: You get your paycheck and have another $375 to add to your discretionary spending account.  Blue: You get your paycheck and have another $250 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

24 Month 2 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Green: You get your paycheck and have another $125 to add to your discretionary spending account.  Black: You get your paycheck and have another $75 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

25 Month 3 Is there a balance on your credit card? Assess fees. For any balance, the minimum payment on your credit card is $20 dollars. Do you: A:Pay the minimum balance on your credit card? B: Pay double the minimum balance on your credit card? C:Pay the entire balance on your credit card?

26 Month 3 Do you want to put any money into savings? If so, how much? A:None B:$25.00 C:$50.00

27 Month 3 Do you want to put any money into charitable causes? If so, how much? A:None B:$25.00 C:$50.00

28 Month 3 You have found out that your (and your “significant other’s”) favorite musical act is having a concert at the Tacoma Dome this month. Taking your S.O. to the concert would win you major “brownie points.” The evening will cost you $150 for dinner for two, two concert tickets, parking, and concert T-shirts. Do you: A:Pay for the evening using cash? B: Pay for the evening using your credit card? C: Choose not to go to the concert?

29 Month 3 OUCH! You’ve broken a tooth while eating popcorn and need to go to the dentist! You do have dental coverage through your job, but there is a $200 deductible and then insurance only pays for 80% of the remaining charges. Rather than walk around in excruciating pain, you go to the dentist. Your total cost to fix your tooth is $400. Do you: A:Pay the dentist using cash? B: Pay the dentist using your credit card?

30 Month 3 Your friends have invited you to go snowboarding at Stevens Pass this weekend. You own your snowboard and equipment so you won’t need to rent at the hill. It will cost you $100 total for a lift ticket, food, and transportation. Do you: A :Pay for snowboarding using cash? B: Pay for snowboarding using your credit card? C:Choose not to go snowboarding?

31 Month 3 Your apartment had a pipe burst when you were sleeping. As you walk into your kitchen this morning to make coffee you realize you are wading through water. Although the complex will cover the structural damage, your furniture and electronic equipment is ruined (including your computer you use for work!). If you bought renter’s insurance your out of pocket cost is $50. If you did not, A:Spend $600 for computer (sit on floor, no TV) B:Spend $1000 for computer and used furniture/TV C:Spend $1500 for computer and new furniture (from Ikea, Video Only)

32 Month 3 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Red: You get your paycheck and have another $375 to add to your discretionary spending account.  Blue: You get your paycheck and have another $250 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

33 Month 3 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Green: You get your paycheck and have another $125 to add to your discretionary spending account.  Black: You get your paycheck and have another $75 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

34 Month 4 Is there a balance on your credit card? Assess fees. For any balance, the minimum payment on your credit card is $20 dollars. Do you: A:Pay the minimum balance on your credit card? B: Pay double the minimum balance on your credit card? C:Pay the entire balance on your credit card?

35 Month 4 Do you want to put any money into savings? If so, how much? A:None B:$25.00 C:$50.00

36 Month 4 Do you want to put any money into charitable causes? If so, how much? A:None B:$25.00 C:$50.00

37 Month 4 GOOD NEWS! You told your parents about your broken tooth and trip to the dentist. Since they know that money is tight for you, they offer to give you the money you spent on your dentist bill. You now have an extra $400! Do you: A:Pay your credit card bill? (cash left goes into cash) B: Put half into savings and keep half in cash? C:Keep all $400 cash?

38 Month 4 BAD NEWS! Your roommate moved out without giving notice and left you on the hook for the ENTIRE rental bill for this month. You’ll get a new roommate next month, but you owe your landlord an extra $500! A:Pay the entire $500 from cash? B: Pay the entire $500 from savings? C:Split the $500 between cash and savings?

39 Month 4 Once again, your friends have invited you to go out for dinner and a movie. Isn’t it great to have friends? The total tab comes to $45. Do you: A: Pay for the evening out using cash? B:Pay for the evening out using your credit card? C:Choose not to go out with your friends?

40 Month 4 You snag your best pair of pants on a hook at work. You need to buy another pair. Fortunately, there is a sale at your favorite clothing store, only $50 to replace your ruined pants with a comparable pair. Do you: A:Pay for the pants using cash? B: Pay for the pants using your credit card? C: Choose to make do with what you have and not buy the pants?

41 Month 4 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Red: You get your paycheck and have another $375 to add to your discretionary spending account.  Blue: You get your paycheck and have another $250 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

42 Month 4 It’s the end of the month! Get a report from your “Money Watchers” on your financial condition.  Green Dots: You get your paycheck and have another $125 to add to your discretionary spending account.  Black Dots: You get your paycheck and have another $75 to add to your discretionary spending account. You currently have ( ) dollars in cash and ( ) dollars in savings. Your credit balance is ( ) dollars.

43 Month 5 Is there a balance on your credit card? Assess fees. For any balance, the minimum payment on your credit card is $20 dollars. Do you: A:Pay the minimum balance on your credit card? B:Pay double the minimum balance on your credit card? C:Pay the entire balance on your credit card?

44 Month 5 Do you want to put any money into savings? If so, how much? A:None B:$25.00 C:$50.00

45 Month 5 Do you want to give any money to charitable causes? If so, how much? A:None B:$25.00 C:$50.00

46 Month 5 Quarterly Performance Bonus! Thanks to all the hard work you have been doing, you earn a bonus of $150. A:Put into savings B:Keep as cash on hand C:Pay off credit card (if cash is left, automatically goes to cash)

47 Month 5 Your “significant other” lets you know that you are not spending enough time with them lately. If you don’t do something about it, your relationship with your S.O. will be history. A nice evening out is going to cost you about $100. Do you: A: Pay for the evening out with cash? B: Pay for the evening out with your credit card? C: Choose not to go out and end your relationship with your S.O.?

48 Month 5 Your cell phone bill arrives and it looks like you’ve been “texting and talking” way too much. Your bill is $100.00 larger than you have budgeted each month for this expense. Failure to pay the bill will result in losing your cell phone service which is NOT an option. Do you: A: Pay for the extra charges using cash? B: Pay for the extra charges using your credit card?

49 Month 5 YOUR IDENTITY HAS BEEN STOLEN!! Since you haven’t shredded items that have your personal information on them, such as receipts, credit card applications, and other assorted forms, thieves have gone through your garbage and stolen your identity. Federal law says that you are only liable for $50 of the fraudulent charges. However, your credit card is now revoked. Since you now have no credit card, you must pay $50 cash to your credit card company. Remember, even though you can’t use your credit card you are still liable for the charges you have already accumulated

50 Month 5 Your best friend wants you to go out for dinner. It would be a lot of fun and a relief from the stress of your identity theft. It would cost a total of $50. You no longer have a credit card, so cash is your only option. Do you: A:Pay for the night with cash on hand? B: Choose to stay in and wallow in your sorrow?

51 Month 5 This just isn’t your month! Now your car isn’t running well. In fact, it’s hardly running at all! You go to your mechanic and find out that you need a new “oxygen sensor.” The total for parts and labor comes to $400. If you don’t have your car, you will lose your job. Remember, you no longer have a credit card and you can’t get a loan because of your stolen identity. Do you: A: Pay for the car repairs using cash? B: Call mom & dad to see if your room is still open? (Note: if you are a mechanic, you are able to fix your car yourself, so you don’t have to pay the $400 to fix it!)

52 End of month 5!!! If you were able to come up with enough cash on hand to fix your car… CONGRATULATIONS you don’t have to move back in with your parents!!

53 Game Over Award your group the corresponding number of points for each category: SAVINGS: Total dollar amount in savings account:  $688 - $750:4 points  $625 - $687:3 points  $563 - $624:2 points  $500 - $562:1 point

54 Game Over Award your group the corresponding number of points for each category: CREDIT CARD BALANCE: Total dollar amount owed on credit card:  $0 - $100:4 points  $101 - $200:3 points  $201 - $300:2 points  $301 and over:1 point

55 Game Over Award your group the corresponding number of points for each category: CHARITABLE DONATIONS: Total dollar amount donated to charitable causes:  $188 - $250:4 points  $125 - $187:3 points  $63 - $124:2 points  $0 - $62:1 point

56 Game Over Total the points earned in all three categories. The group with the highest total is the winner.

57 Discussion Questions What decisions would you change? What are some ways you could have saved money? Did you find differences within your group about what were needs vs. wants?


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