NATIONAL ECONOMICS UNIVERSITY FINAL EXAMINATION

PERSONAL FINANCE
Program: . Intake:
Venue: ..................................
Date: ............................. Exam-shift:
Duration: 90 minutes
School of Advanced Education Program

Mock exam

Question 1: These statements are True or False? (30 marks, 2.5 score/each correct answer)

1.1. Education plan is incorporated in a financial plan. T

1.2. The life situation of a household includes a combination of personal factors such as age, income,
household size, and personal beliefs. T
1.3. Opportunity costs refer to money already spent. F
1.4. Money management refers to day-to-day financial activities. T
1.5. The two personal financial statements that you create yourself are the personal balance sheet
and a credit card payoff statement. F
1.6. Net worth is the amount owed to others. F
1.7. Liquid assets are cash, money in checking and savings accounts, and items of value that can be
easily converted to cash. T
1.8. When completing a cash flow statement, deductions are subtracted from gross salary to
determine take-home pay. T
1.9. The unit price of a 32-ounce jar of honey that costs $8.32 is $0.13 per ounce. F
1.10. After two or three years of making loan payments on a new car, the balance owed is greater
than the value of the car, which is a situation referred to as upside-down. T
1.11. Minh checked out brands and prices of blue jeans at several stores. She was impulse
shopping. F
1.12. During problem identification, a clear statement of a problem is "I need to have a car". F
Question 2: Assignments (30 marks)

2.1. (10 score) Describe risks that you might encounter when making financial decisions over the next few years.

Inflation

Prices in the marketplace tend to increase, or inflate, over time. Inflation causes the value of money
to fall. If the average cost of goods goes up 5 percent, each dollar you have buys 5 percent less. As a
result, inflation reduces the effective returns you get from saving and investing. For instance, if a
savings account pays 3 percent interest, but the inflation rate is 2 percent, your effective return is
only 1 percent. Conservative investments with low returns run the risk of failing to beat inflation,
which can cause the value of your savings to fall over time.

Market Risk

The value of property can change over time based on consumer demand. For example, if you buy a
home, its value could go up if many people want to move to your neighborhood. On the other hand,
the value of a home can go down if few people are interested in buying. Many economic factors can
influence consumer demand, such as changes in interest rates, unemployment, lending practices and

Open book exam -No cell phones, tablets and laptops – No discussion among students
the growth rate of the economy. The possibility of property losing value due to changes in market
demand is known as market risk and is a major concern when investing in things such as stocks and
real estate.

Taxation

The Internal Revenue Service makes you pay taxes on a wide range of income sources, including cash
you make from savings and investments. Taxes on investment profits are higher if you sell an
investment within a year after buying it, so trading investments frequently can increase your taxes.
Putting cash in tax-advantaged retirement plans such as a 401(k) or individual retirement account
can help cut your taxes and increase the chances of making money.

Fees and Expenses

Some investments come with expenses and fees that serve to reduce your total return. For instance,
you typically have to pay a transaction fee each time you buy or sell a stock, and financial companies
may charge a fee for keeping an account open. Fees and expenses eat into investment returns over
time and increase the risk of losing money. For example, if you invest in a mutual fund that generates
a 4 percent annual return, but the inflation rate is 3 percent and the fund charges a 2 percent annual
fee, the real value of your investment would actually fall by 1 percent due to the combined effects of
inflation and fees.

2.2. (20 scores) How is your purchasing and income earning during Tet Holiday/summer vacation?
(list down the items and costs/incomes). Using the knowledge of chapter 3 - wise purchasing
strategies - to assess your activities. What are lessons learnt for you?

Question 3: Exercises (40 marks)

3.1. (20 scores)

Use the following items to determine the total assets, total liabilities, net worth, total cash
inflows, and total cash outflows.
Unit: US$
Rent for the month 750 Monthly take-home salary 2,285
Spending for food 395 Cash in checking account 470
Savings account balance 1,910 Balance of educational loan 2,280
Current value of automobile 9,000 Telephone bill paid for month 75
Credit card balance 245 Loan payment 100
Auto insurance 250 Household possessions 3,600
Video equipment 2,400 Payment for electricity 100
Lunches/parking at work 190 Donations 180
Personal computer 1,300 Value of stock investment 910
Clothing purchase 120 Restaurant spending 140

3.2. (20 scores)

Consider Minh’s budget worksheet for April, and then answer the questions:

Unit: US$

Open book exam -No cell phones, tablets and laptops – No discussion among students
 Income Spending
Date Source Amount Date Purpose Amount

7/4 Wages 550.5 3/4 New sweater 120.3

9/4 Birthday gift 40.5 12/4 Car insurance 115.4
21/4 Wages 650.5 15/4 Rent 350.5
23/4 Babysitting job 15.5 23/4 Credit card bill 350.5
30/4 Savings interest 90.5 25/4 Telephone bill 15.5
26/4 Grocerries 250.5
29/4 Doctor’s visit 100
a. How much was Minh able to save in April?
b. Which sources of her income may not be the same from month to month?
c. Which types of spending might not be the same from month to month?
d. Why would a series of short-term budget worksheets be needed to develop a long-term
budget?

Chap 1:

1. The only way that you can have long-term financial security is to not save all of your current
income.
FALSE
The only way is to not SPEND all income.
2. Abigail checked out brands and prices of blue jeans at several stores. She was impulse shopping.
FALSE
She was comparison shopping.
3. Abigail checked out brands and prices of blue jeans at several stores. She was comparison
shopping.
TRUE
4. Cam has an overwhelming desire to buy things whenever he goes shopping. One could say that he
is a compulsive shopper
TRUE
5. One of the best ways to compare packaged food products is to use rebate pricing.
FALSE
Comparisons are made with unit pricing.
6. Prices at the local Quick Market (convenience store) will probably be lower than the regional Big
Box Retailer (grocery store).
FALSE
Convenience stores usually have higher prices.
7. Thomas bought a toaster that would not toast bread and returned it. The manufacturer accepted
the return because it was defective and had a full warranty.
TRUE
8. Thomas bought a vehicle from a used-car dealer. He returned it to the dealer because the
transmission fell out 150 miles after he purchased it. The dealer refused to accept the return because
the vehicle was sold 'as is.' This is an example of a limited warranty.
FALSE
Since the vehicle was sold "as is," no warranty was offered.
9. A service contract is frequently called an extended warranty even though service contracts are not
warranties
Open book exam -No cell phones, tablets and laptops – No discussion among students
TRUE
10. Service contracts on vehicles usually are wise financial decisions.
FALSE
Because of costs and exclusions, service contracts may NOT be a wise financial decision.
11. An example of a "preshopping activity" is negotiating the price of a product.
FALSE
Negotiations are part of the Selection and Purchase phase of the buying process.
12. The phases of buying are: problem identification, pre-shopping activities, evaluating alternatives,
selection and purchase, post-purchase activities.
FALSE
Problem identification is part of the "pre-shopping" activities; therefore, there are four phases.
13. A clear statement of a problem is: "I need to have a car."
FALSE
A better statement would be "I need transportation."
14. A convenience option that consumers may look for in a vehicle is special trim.
FALSE
Special trim is an aesthetic feature on a vehicle.
15. An aesthetic feature of a vehicle is air conditioning.
FALSE
Air conditioning is a convenience option.
16. A vehicle that looks rusty on the outside will have major operational problems.
FALSE
Looks can be deceiving.
17. A vehicle that looks rusty on the outside may hide a well-maintained engine.
TRUE
18. A lease for a car or SUV is typically for three to five years.
TRUE
19. An advantage of a lease over a purchase is that the buyer can usually obtain a more expensive
vehicle for the same monthly payment.
TRUE
20. One of the first steps in a car purchase negotiation should be a discussion of the trade-in vehicle.
FALSE
A trade-in vehicle should NOT be mentioned until the cost of the new car has been settled.
21. A trade-in vehicle should NOT be mentioned until the cost of the new car has been settled.
TRUE
22. If you are somewhat interested in a specific vehicle, you should provide a small deposit so the car
seller will hold the vehicle for you.
FALSE
If you change your mind about the vehicle, you can lose your deposit; therefore, never leave a
deposit until you are ready to buy a vehicle.
23. Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.
FALSE
All 50 states and the District of Columbia have enacted lemon laws.
24. The largest fixed expense associated with a new automobile is depreciation.
TRUE
25. Studies of consumer problems consistently rank auto repairs as one of the best consumer
services with few consumer complaints.
FALSE
Studies have ranked auto repairs as one of the top consumer rip-offs.
26. People should be prepared for problems with purchases.
True

Open book exam -No cell phones, tablets and laptops – No discussion among students
27. If you have a problem with a product and you really want to get the attention of someone in
customerservice, you should raise your voice during your conversation.
FALSE
You should use a calm, rational, persistent approach.
28. If you have a problem with a product, the first place you should express your dissatisfaction to is
the corporate headquarters.
FALSE
You should contact the corporate level if a problem is not resolved at the local store.
29. Joe bought some cheese at his local grocery store. After he brought it home, he noticed it was
moldy even though the expiration date was still three weeks away. He should call the toll-free
hotline number printed on the package to tell the company of the problem he encountered.
TRUE
30. The settlement of a difference by a mediator is legally binding.
FALSE
The settlement by an arbitrator is binding. Mediation is a nonbinding process.
31. The settlement of a difference by an arbitrator is legally binding.
TRUE
32. Tracy went to a local restaurant and became ill from the meal she ate. She can contact her city or
county health department to handle problems with the restaurant.
TRUE
33. Small claims court is used to take legal action by a few individuals on behalf of all who have
suffered the same alleged injustice.
FALSE
Small claims court is for low-value claims. The legal action taken on behalf of others is a class action
suit.
34. The best place to find a qualified lawyer who will meet your specific needs is a phone book.
FALSE
Common sources of lawyers are referrals from friends, advertisements, and the local division of the
American Bar Association.
35. One of the best places to find a qualified lawyer who will meet your specific needs is referrals
from friends.
TRUE
36. A good time to use a lawyer is when you appear in small claims court.
FALSE
Lawyers are often used in more complicated matters.
37. The best time to ask a lawyer about his fees is after he wins a case for you.
FALSE
You should ask about the fee structure and payments when you select the lawyer.
38. When Jane researched the brands and prices of her refrigerator, she was
A. Comparison shopping
39. While Paul was shopping for a new chainsaw, he found a great deal on new drill and bought it.
This is an example of
C. Impulse shopping
40. Jacob drives by a Big Box home improvement center on his way home from work. He usually
stops and buys something because it makes him feel good. Jacob is
B. Compulsive shopping
41. Which of the following is NOT a strategy for wise buying?

A. Buying winter clothes on sale in mid- or late winter

B. Researching the prices and choices for purchases
C. Buying items on impulse

Open book exam -No cell phones, tablets and laptops – No discussion among students
D. Carefully considering buying alternatives
E. Using unit pricing to compare products
C. Buying items on impulse
42. These products are highly advertised and available at many stores
C. National-brands
43. These products are sold by one chain of stores and are low-cost alternatives to famous-name
products.

A. Private-label brands
B. Store-brands
C. National-brands
D. Two of the above are correct
E. All of the above are correct
D. Two of the above are correct
44. A standard measurement used to compare packages of different sizes is
D. Unit pricing
45. This type of promotion provides an immediate savings for consumers.
A. Coupons
46. This shopping device is used primarily on perishable products.
B. Open dating
47. The partial refund of the price of a product is called
C. Rebates
48. This is a written guarantee from the manufacturer that specifies the conditions under which the
product can be returned, replaced, or repaired.
E. Warranty
49. Most products come with some guarantee of quality. Which of the following is usually in written
form, created by the seller or manufacturer and has two forms?
B. Express warranty
50. Most products come with some guarantee of quality. This type of warranty states that a defective
product can be fixed or replaced during a reasonable amount of time.
C. Full warranty
51. Most products come with some guarantee of quality. This type of warranty covers only certain
aspects of the product, such as parts.
E. Limited warranty
52. Most products come with some guarantee of quality. This type of warranty covers the product's
intended use or other basic understandings that are not in writing.
D. Implied warranty
53. Steve bought a laptop that was defective. This laptop will be fixed or replaced by the
manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he
have on his laptop?
C. Full warranty
54. Frank bought some mini-blinds. Although he did not receive a written warranty, the blinds
should be expected to open and close properly. What kind of warranty does Frank have?
D. Implied warranty
55. Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If
the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the
following warranties does she have?
E. Limited warranty
56. Mike bought a new car. His new car warranty probably included all except

A. Coverage of basic parts against defects

B. Corrosion warranty
Open book exam -No cell phones, tablets and laptops – No discussion among students
C. Extended coverage for air conditioning
D. Possibility to transfer the warranty to other owners of the car (additional charges may apply)
E. Power train coverage
C. Extended coverage for air conditioning
57. A service contract
E. Covers the repair costs of a product.
58. The text identifies several phases in the buying process. The correct order of the phases is
C. Pre-shopping activities, evaluating alternatives, selection and purchase, post-purchase activities
59. Problem identification is part of the ____ phase of the decision-making process.
C. Pre-shopping activities
60. Information gathering is part of the ____ phase of the decision-making process.
C. Pre-shopping activities
61. Comparison of product features is part of the ____ phase of the decision-making process.
A. Evaluating alternatives
62. Price analysis is part of the ____ phase of the decision-making process.
A. Evaluating alternatives
63. Negotiation activities are part of the ____ phase of the decision-making process.
D. Selection and purchase
64. Choosing the payment method is part of the ____ phase of the decision-making process.
D. Selection and purchase
65. Properly maintaining and operating the product is part of the ____ phase of the decision-making
process
B. Post-purchase activities
66. Resolving purchase concerns is part of the ____ phase of the decision-making process.
B. Post-purchase activities
67. Which of the following is the best way to state a problem?

A. I need to have a car.

B. I need transportation.
C. I need a motorcycle.
D. I need to have a minivan.
E. I need to have an SUV.
B. I need transportation.
68. Which of the following sources would be the LEAST helpful when purchasing a vehicle?

A. Personal contacts to learn about product performance

B. Media information with purchasing advice
C. Independent testing organizations like Consumers Union
D. Online sources with product information
E. Your cousin who has never purchased a car
E. Your cousin who has never purchased a car
69. All of the following are appropriate questions you could ask before making a major purchase
except

A. Is it possible to delay the purchase or to do without the item?

B. Should I pay for the item with cash or buy it on credit?
C. Which brands should I consider?
D. How do the price, quality, and service compare at different stores?
E. All of the above are questions that should be asked.
E. All of the above are questions that should be asked.
70. Comparison shopping will be beneficial for buying all of the following except

Open book exam -No cell phones, tablets and laptops – No discussion among students
A. A hot dog at the baseball park
B. Milk and bread that you buy weekly
C. A pet dog
D. Musical instrument accessories that you purchase online
E. An expensive television
A. A hot dog at the baseball park
71. Comparison shopping will be beneficial for buying
E. Items that can be researched easily with advertisements
72. Buying a vehicle can be a challenging process. When researching a vehicle, a consumer may want
to consider all of the following except

A. Mechanical devices to improve performance

B. Convenience options such as air conditioning
C. Aesthetic features like metallic paint
D. All of the above may be considered
E. None of the items listed are important when buying a vehicle
D. All of the above may be considered
73. The average used car costs about _______ less than the average new car.
C. $10,000
74. When purchasing a used vehicle, it is a good idea to

A. Take out a loan for the entire cost

B. Accept the dealer at his word about the condition of the vehicle
C. Have a trained and trusted mechanic of your choice check out the vehicle
D. All of the above are correct
E. None of the above is correct
C. Have a trained and trusted mechanic of your choice check out the vehicle
75. Which of the following is an advantage of a car lease?

A. A large down payments is required

B. At the end of the lease, you have no ownership interest in the vehicle
C. The capitalized cost is usually higher than the list price
D. Monthly lease payments are usually lower than monthly financing payments
E. The total cost of a lease may be higher than a purchase
D. Monthly lease payments are usually lower than monthly financing payments
76. Which of the following is a disadvantage of a car lease?

A. A large down payments is required

B. At the end of the lease, you have no ownership interest in the vehicle
C. The capitalized cost is usually lower than the list price
D. Monthly lease payments are usually lower than monthly financing payments
E. You can usually obtain a more expensive vehicle than with an outright purchase
B. At the end of the lease, you have no ownership interest in the vehicle
77. The amount printed on a label that is posted on a vehicle is called
B. Sticker price
78. The dealer's cost is also known as the
A. Invoice price
79. A no-haggling dealer will use a(n) _______
C. Set-price
80. The price of a leased vehicle is known as the

A. Invoice price
Open book exam -No cell phones, tablets and laptops – No discussion among students
B. Sticker price
C. Set-price
D. Capitalized cost
E. Residual value
D. Capitalized cost
81. The expected value of a vehicle at the end of a lease is called the

A. Invoice price
B. Sticker price
C. Set-price
D. Capitalized cost
E. Residual value
E. Residual value
82. Izzy is thinking about leasing a sports car. She will make monthly payments based on a money
factor and the ____________

A. Invoice price
B. Sticker price
C. Set-price
D. Capitalized cost
E. Residual value
D. Capitalized cost
83. Helga plans to purchase a pick-up truck. She should begin her price negotiation at the

A. Invoice price
B. Sticker price
C. Set-price
D. Capitalized cost
E. Residual value
A. Invoice price
84. A vehicle lease has several costs. Which of the following is the price of the vehicle?

A. Capitalized cost
B. Money factor
C. Payment schedule
D. Residual value
E. All of the above
A. Capitalized cost
85. A vehicle lease has several costs. Which of the following is the interest rate used to calculate the
monthly cost?

A. Capitalized cost
B. Money factor
C. Payment schedule
D. Residual value
E. All of the above
B. Money factor
86. A vehicle lease has several costs. Which of the following is the periodic cost?

A. Capitalized cost
B. Money factor
C. Payment amount
Open book exam -No cell phones, tablets and laptops – No discussion among students
D. Residual value
E. Trade-in value
C. Payment amount
87. A vehicle lease has several costs. Which of the following is the expected value at the end of the
lease?

A. Capitalized cost
B. Money factor
C. Payment amount
D. Residual value
E. Trade-in value
D. Residual value
88. Which of the following is a cost associated with a vehicle lease?

A. Capitalized cost
B. Money factor
C. Payment amount
D. Residual value
E. All of the above
E. All of the above
89. George has never bought a car before. Which of the following techniques should he use to get the
best deal?

A. Lowballing
B. Highballing
C. Leave a deposit to hold the vehicle
D. Research the actual dealer cost and begin negotiations from that point
E. Tell the dealer the highest monthly payment he can afford
D. Research the actual dealer cost and begin negotiations from that point
90. A potential problem with having a long car loan is

A. Low monthly payments

B. Low-interest loan
C. Negative equity
D. Loan preapproval
E. All of these are potential problems
C. Negative equity
Debate

1. New car and old car

Heads up, we do draw a dividing line between used and new cars.
 Used cars are cars that are second-hand cars
 New cars are cars that are directly bought from a showroom

+ Used car are more economical

Taxes and Fees for new car in Vietnam

Import Tax:

Excise tax depending on the number of seats and cylinder capacity:

Value Added Tax (VAT): 10% cho tấ t cả cá c loạ i xe

Open book exam -No cell phones, tablets and laptops – No discussion among students
Registration tax:

Registration and certification fees

Road maintenance fees

License plate fee

Compulsory civil liability insurance premium

Tax for used car

Registration tax for used cars in Vietnam: (2%*thờ i gian đã qua sử dụ ng) (Xe cà ng cũ thì cà ng rẻ, xe 1
nă m sử dụ ng thì giá trị sẽ tính là 90%, 1-3 nă m là 70%, 3-6 nă m là 50%, 6-10 nă m là 30% và trên 10
nă m là 20%)

Withdrawal fee when changing the owner: Trong cù ng 1 tỉnh, nếu biển sẵ n 5 số thì khi sang tên chỉ
mấ t 50k, đổ i biển từ 4 lên 5 số là 150k

Some other fees such as registration fee or civil liability insurance fee may be payable if the previous
owner of the vehicle has not renewed the above fees.

Take for example the KIA morning Standard with the dealer's price of 304 million, assuming we
import it from Germany to Hanoi, then the cost will be more than 750 million, more than double the
actual value of the car. The same KIA morning standard as above, after using for 1 year, moving from
a small province to HN, the old owner has not renewed the registration fee, etc., the price we will
only need to spend 300 million. With only about 380 million, we have owned a car with a value of up
to 90% of the original car. That's still nearly 20% cheaper than the price of a new car, not to mention
we can bargain with car owners to bring the car price down even lower.

+ Ability to experience cars in the high-end segment

For the same cost, customers can choose a higher-segment used car than a low-segment new car. For
example, 600 million can buy a new Toyota Vios, but the same amount can buy an old Mazda3 from
2011-2012. The higher segment means more interior space, convenience and safety technology, and
the engine is also superior.

According to preliminary statistics in the world, of the people who buy supercars in the used car
market, most of them are rich. The reason is, if they buy new supercars, the value of the car will drop
very quickly after 1-3 years, so it's better to buy a used car. Even with the money to buy a new car,
they can buy some used supercars. On the surface, no one will recognize it as an old car, and every
day they can ride different cars, thus enhancing their value and class.

+ More options (appearance vs engine)

Vehicle companies will change the appearance and engine of their vehicles with each generation and
model, so there are models that can no longer be found. For car enthusiasts, they will want to buy
their favorite engine models, so they often buy used cars. Or in case there's a model you really like,
but it's no longer in production, then you can only buy it back from previous owners.

Open book exam -No cell phones, tablets and laptops – No discussion among students
There are even models that were very popular in the past (which I now call it classic cars) such as:
Japan Domestic Market: Toyota Supra Mark IV 2JZ-GTE, Mazda Miata, Mazda RX-7, Nissan GTR R34,
Acura NSX, Toyota AE86. When models are no longer produced, but buyers are still available ->
supply < demand -> prices will increase. (Toyota Supra used to cost $40,000 -> now auctioned for
$200,000)

2. Luxury good

Ủ ng hộ

- Luxury good industry play an important role in global business

Each time a luxury goods or services is bought, a large amount of money is transacted in the market. Given
the high prices of these items, the total consumer spending of this category will grow faster than any other
industry and contribute significantly to further economic growth. In 2022, total revenue of the global
luxury industry is 1,4 billion USD, which is equivalent to the total GDP of Spain - 1,5B and ranked 14 in
the top 50 richest economies in the world. Not only has it made a great contribution to the economy, but
the luxury industry has also rebounded very quickly since the COVID. This partly proves the great
influence of luxury goods and services in the economy well-being as well as people's lives

The luxury industry has a long history of creating many new jobs. And because jobs in this industry often
require specialized skills and knowledge, companies are willing to pay top dollar (high salary) for the
skilled. Also, this industry offers a wide range of career opportunities for people with different
backgrounds and skill sets, from research and development to marketing and sales.

Finally, it should be noted that the presence of luxury goods and services in a region can have a significant
impact on tourism. Travelling is all about experience, where each of us hope to find joy and comfort in it.
This is especially true in the case of luxury services with a focus on customer experience.

Tourists and visitors are often drawn to areas that offer high-end products and services, creating a ripple
effect that can lead to increased economic activity and job creation in the region.

Ex: Many place, which used to be faint on the domestic tourist map, have now been mentioned by the
world as an attractive destination thanks to their unique, high-class works and accommodations, winning
many international awards such as:

 JW Marriott Phu Quoc Emerald Bay (Phu Quoc islands) in October, 2019 was honored to
be Asia's most luxurious resort and spa

Phản đối

Luxurious goods have high cost but are not worth it

Luxurious goods are often significantly more expensive than their non-luxury counterparts, making them
inaccessible to many people. We are affected by sophisticated marketing strategies and psychological
tricks that build us the perceptions that luxury items are worth with their incredibly high price. In fact,
luxury brands are selling logos and branding instead of selling their products.

Reason 1: Higher-Priced Goods are not Really of Higher Quality

The price of the Gucci item is approximately 40 times higher than the zara one. But the quality may not as
the same ratio, may be 2 or 3 times higher.

The prices of the products do not always reflect the amount of money that takes to manufacture them.
Open book exam -No cell phones, tablets and laptops – No discussion among students
Argument 2: The use of luxurious goods have downside environmental impact

Now, one might argue that this is not true, based on the quality of luxury brands products. Luxury fashion
pieces last for years, even decades, as compared to their fast-fashion counterparts, whose pieces are often
disposable and designed for short-term use.

Resource depletion

However, luxury fashion brands aren’t completely blameless, either. In order to create pieces that reflect a
brand’s heritage, values, and quality, luxury brands require the highest standard of fabric, dyes, and other
production materials. As a result, large amounts of natural resources (like water) are poured into creating
the perfect quality piece.

Waste generation

Moreover, since not all materials meet the stringent quality standards required, luxury brands even discard
subpar or inadequate raw material, contributing to waste generation. There have also been cases where
luxury brands have led to incinerating pieces that didn’t sell in the market, as they did not wish to lose the
‘exclusivity’ of their products. For instance, in 2018, Burberry sent 28.6 million Euros worth of products to
the incinerator.

+ Negetive impact on society:

When individuals engage in conspicuous consumption, they often spend monemy on luxury goods and
services that are beyond their means. They may use credit cards, take out loans, or dip into their savings to
finance their spending habits. This can lead to a situation where they are unable to pay their bills or meet
their financial obligations. Over time, this pattern of overspending can lead to significant financial strain.
Additionally, they may have to cut back on necessities or forego saving for the future in order to keep up
with their conspicuous consumption habits, which can further exacerbate their financial difficulties
Conspicuous consumption, which is the public display of wealth through the consumption of luxury goods
and services, can contribute to social inequality by creating a visible and tangible gap between the wealthy
and the less wealthy. This display of wealth can lead to a perceived hierarchy or social ladder, where
individuals are judged and valued based on their ability to display wealth and status.
Conspicuous consumption can contribute to a culture of materialism, where individuals place a high value
on material possessions as a source of happiness and fulfillment. This focus on material possessions can
lead to a neglect of other important values, such as personal relationships, health, and personal growth.
Materialism can contribute to feelings of emptiness, dissatisfaction, and a lack of purpose or meaning in
life
3. Buy house – Rent house

And while you are wondering, asking yourself whether to rent or buy a house at the present time,
we will prove that the benefits of buying a house are superior to renting...
Open book exam -No cell phones, tablets and laptops – No discussion among students
- Enjoy the comfort with guaranteed privacy

When you own a home, you have full control over your living space in the way you want. When
you own a home, you will have a certain peace of mind about where to live, you have full control
over the use and duration of use, not depending on the landlord's intentions as is the case when
renting a house. Buying a home can also become a solution to enhance our personal activities such
as organizing parties, music or raising pets without having to worry about restrictions or influence
from the landlord. Renting. Furthermore, when you're in a rental home, you can worry about the
landlord possibly invading your privacy by entering the home to check the appliances in the home.

Owning a home gives you the freedom to personalize your living space to your unique liking,
without the landlord's permission. This means you can make modifications to suit your personal
preferences, lifestyle, and needs.

- Buying a house is more stable than renting

Because buying a home requires a large amount of money and a careful preparation and is not easy
to change, often when buying a house it will be a permanent place for a long time. The cost and
procedure for renting a house is very simple, so tenants decide to move more often, so there will
be continuous changes in monthly expenses. This makes it difficult to make long-term personal
financial plans

- Gain profit from rental investment

When owning a house, we can completely invest in renting to make a profit if there is no need to
use the entire house, we can make full use of the house by renting and living together. your tenants
→ can both share the burden of electricity and water and also earn a little extra income. Moreover,
the demand for rent is increasing in big cities such as Hanoi and Ho Chi Minh City. Thus, owning
a house is a great advantage to exploit the investment potential of rental housing

- Price of real estate increase to increase

In the long run, the assets of a homebuyer, or homeowner, will be much larger than that of a renter
as the price of the property will increase over time. Meanwhile, if you rent a house within these 5
years, such an increase in house prices will cause the landlord to increase the rent every time the
contract ends, and the amount of rent you pay to the landlord will simply is lost.

- Buying a house will create a mandatory savings account: Usually, the amount of money to buy a
house is too large, so people will buy a house on installments rather than paying off the whole
house at one time => monthly will have to pay a certain amount of money for the house you own
(this can be like paying your monthly rent, but if you take out a home loan, the larger the amount
you spend, the percentage of the house The bigger you belong to. After the loan is paid off, you
will officially be the owner of the house, not like the rent will be completely lost to the landlord)
4. Start own business
FIRST ARGUMENT: Benefits for the individual entrepreneurs
 One of the main benefits of starting your own business is the ability to increase your income and
financial potential. If you have a good business idea and are persistent enough to pursue it, starting
a business can bring you higher income and financial freedom.

Open book exam -No cell phones, tablets and laptops – No discussion among students
Starting a business has the potential to bring in a higher income than working for someone else. When
working for someone else, your salary is determined by the employer and you have no control over how
much you earn. Meanwhile, when starting your own business, you can earn more if your business thrives.
In addition, having complete control over your business' financial resources also helps you decide how to
use them more effectively. You can invest in projects that bring higher returns and reduce unnecessary
expenses. However, to get the financial benefits of starting a business, you need to invest time, effort, and
resources into building an effective business. You also need to make sure that your product or service
meets the needs of the market and is attractive enough to attract customers. This requires thorough study of
the market, competitors and consumer trends to create an effective business plan.
 Starting a business also has the benefit of developing your skills and experience
When you start your own business, you need to learn and develop new skills and knowledge to build and
grow your business. This requires taking risks and stepping outside of your comfort zone, which can give
you confidence in your abilities. As you overcome challenges and achieve your goals, you will develop a
greater sense of confidence and resilience. You'll learn how to manage finances, market, manage people,
develop products and services, and make important decisions. This helps you develop leadership,
management and entrepreneurship skills that can help you achieve success in many different fields.
SECOND ARGUMENT: Benefits for society
- Startups can create new jobs and help reduce unemployment in the community. They can also
attract talent and provide opportunities for skilled workers to develop their careers.
According to Topica Founder Institute's "Vietnam Startup Ecosystem Report 2020" report, the number of
startups grew from 400 companies in 2012 to 3,000 companies in 2020. As of June 2020, there are about
82,000 employees working in the company. startups in Vietnam.
Startups can contribute to economic growth by generating revenue, paying taxes and creating new
industries. They can also encourage investment in an area and stimulate economic activity in related areas.
For example, according to a report by IFC, a unit of the World Bank, startups in Vietnam contributed about
$1.5 billion to Vietnam's GDP in 2020.
- Nếu có 1 tr đô.
If I had 1 million dollars, I would divide my money into 4 parts: Emergency fund, Expense, Saving and
Investment.
First, I will set aside 300 million VND for risk prevention. This amount includes the minimum expenses
for me to complete all 4 years of university, of which: Tuition fee: 120 million VND, Rent House: 80
million VND, Food: 50 million VND, Other expense: 50 million VND
Seconly, I will use 7, 4 billion VND to spend on myself and my family. In which, 3 billion VND will be
sent to my parents, 4.25 billion VND will be used for studying and 150 million VND will be used for other
external expenses such as Decorate house, Cloths, Cosmetics, Othes. Of the 4.25 billion used for study, I
divided it into
Data Analysis Skills: 10 million VND
Hanoi Law School Degree: 150 million VND
Soft Skills: 40 million VND
3rd language (Korea): 50 million VND
BA Master Degree in Imperial College London, London, England: 4 billion VND/2 years (with living
expenses)
Thirly is saving. I will spend 7 billion VND for savings, of which 5 billion VND - Techcombank - 1 year -
8.7%, 2 billion VND - Saocombank - 1 year - 9%. So it is expected that, after 1 year, the amount of interest
I will receive is
Finally, there is Investment. Investment accounts for 11.3 billion of the total amount I have. This 11.3
billion will be divided into 3 parts, the first part I will use to invest in high-class apartments, the second
part will be used to invest in gold and the rest I will open a book cafe.
Regarding luxury apartments, I plan to buy an apartment in Vinhomes Metropolis - Lieu Giai, Pho
Lieu Giai, Ngoc Khanh Ward, Ba Dinh, Hanoi, an area of 80 m2 with an approximate cost of 8 billion
VND and will be rented for 25 million a month. This investment will create a stable income for me every
month, in addition, the current price of luxury apartments in Hanoi is also trending up, so it can bring me a
profit. when I sell it.
Open book exam -No cell phones, tablets and laptops – No discussion among students
In addition, I spent 2 billion VND to buy gold. Gold is often considered a strong asset for diversifying your
portfolio, based on stability and performance compared to other markets. The precious metal's appeal to
increase when investors face economic and recession, as more people uncertainty becomes interested in
buying gold.
In addition, I will spend 300 million VND to open a book cafe. The cost I estimate is as follows
Rent Expense (1 year) 120 million VND

Decorate 60 million VND

Infrastructure 80 million VND

Business registration fee 10 million VND

Marketing 20 million VND

Ingredient 10 million VND

- Chi tiêu trong tết
Comment: My spending during Tet is quite inefficient. Because I couldn't control my spending.
- I had a plan to spend during Tet but it didn't work. I have estimated the expenditure on new clothes
and gifts for family and relatives is A, but the actual spending level is B, although I have researched
carefully about the price of clothes, but in the process of shopping , I was attracted to higher-priced
models, so the spending exceeded expectations. In addition, there are money that I forget to plan in
advance such as money to go out with friends or money for food because these things arise
unexpectedly and are not within my expectations. Not being able to control my spending leads to my
spending plan not being as expected.
- Analysis of the Pharses
Phars 1:
I didn't do well in the identification problem because I couldn't determine all the expenses I will
have in Tet, so I have 2 unplanned expenses.
About Information gathering. Although I did have a look at the price, the information I had was
incomplete, so when I did the actual shopping, I continued to have problems deciding what to buy
and the results led to the break. proposed plan
One problem I had was not being consistent with my plan. I am easily attracted to the items in the
mall that easily lead to compulsive shopping
Financial plan for next 2 years
2 nă m sau tô i sẽ tố t nghiệp đạ i họ c nên tô i đã có mộ t số kế hoạ ch cho tương lai
My current financial situation:
- Income: 5 million dong/month
- Saving: 3 million dong
- Debt balance: 0
- Living expense: 4 million VND
Long-term goal: 50 million in my saving account
- Saving per month: 500000 VND
My current pan

Open book exam -No cell phones, tablets and laptops – No discussion among students