Client #1

Debbie Debutante is 23 years old and has just graduated from college. She got a decent job as an engineer working for a major tech company in her home town. In college, she mainly concentrated on school and having fun; she did not worry about her savings. In fact, she has no money saved up and has a moderate amount of debt from student loans and on her credit card.

Question

Client #1

Debbie Debutante is 23 years old and has just graduated from college. She got a decent job as an engineer working for a major tech company in her home town. In college, she mainly concentrated on school and having fun; she did not worry about her savings. In fact, she has no money saved up and has a moderate amount of debt from student loans and on her credit card.

BlackTom AI · Accepted Answer

This item presents a vignette about Debbie Debutante, a 23-year-old recent graduate with no savings and some debt, and asks for an essay-style response.
First, note there are no answer options to analyze, so we cannot evaluate which choice is correct. Instead, we can outline key themes and considerations a thoughtful essay should address when discussing her financial situation.
Consider starting with a clear assessment of her current financial position: lack of savings, presence of student loan and credit card debt, and a stable first job as an engineer. This sets up the need to discuss emergency savings, debt repayment strategies, and budgeting.
A strong response should cover: (1) budgeting basics—tracking income, essential expenses, and discretionary spending, (2) building an emergency fund (often suggested as 3–6 months of living expenses) to reduce vulnerability to income shocks, (3) creating a debt repayment plan, such as the avalanche method (paying highest-interest debt first) or the snowball method (smallest balance first for momentum), and (4) prioritizing retirement and long-term savings, such as contributing to a 401(k) or similar employer-sponsored plan, especially taking advantage of any employer match.
Additionally, the essay could discuss non-monetary financial literacy steps: understanding credit scores, responsible credit-card use to avoid high interest, and setting up automatic transfers to savings to build the habit without constant manual effort.
Consider addressing potential barriers Debbie might face: student loan interest rates and repayment terms, competing financial goals, market conditions, or lifestyle choices from college that affected her financial habits. A nuanced answer would propose concrete, realistic steps tailored to someone at the start of their career, such as signing up for employer benefits, researching loan refinancing options (if appropriate), and gradually increasing savings contributions as income rises.
Finally, an effective essay would demonstrate critical thinking by weighing trade-offs between paying down debt quickly versus preserving liquidity and investing for growth, while keeping a student-friendly, practical plan at the forefront for someone in Debbie’s situation.

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