Reference no: EM132956344

Lenny and Leanne have been dating for over a year and moved in together three months ago. Lenny spends all his time and money on video gaming and buying the latest equipment. You have concerns for Leanne and the impact that Lenny's lack of control over his finances may have on her. You are also concerned for her credit score as the bills (and lease agreement) are in both their names. Leanne knows little about finances and has turned to you for help as you have taken FINA 200. Use information from the case in your responses.

Leanne:

• attends Concordia full-time
• is living pay cheque to pay cheque with her part-time job and paying for her schooling
• works 20 hours/week earning $17/hour working at Starbucks
• has managed to save $40 a pay cheque for a total of $800 in her bank's savings account

Lenny:

• attends McGill full-time
• has not paid his half of the rent for June and July (Leanne was not aware that Lenny had not paid his share of the rent for the second consecutive month, it was only when the landlord showed up at their door threatening them for payment that Leanne discovered the non-payments and quickly transferred the money from her savings account to the landlord)
• has maxed out his two credit cards with the purchase of additional video games; he is however not worried as he has applied for another credit card
• not currently working as his parent's pay for his schooling, bills and entertainment (Leanne knows that his parent's are getting frustrated as they keep asking Lenny for a budget so they know how much to transfer him on a monthly basis but Lenny tells them that a budget is a waste of time as his spending needs change all the time)

Problem a) Lenny thinks Leanne worries too much about finances and that as a student, banks are more understanding on credit scores. Once he graduates from engineering from McGill, he says the banks will "love him" and is not concerned about credit. Is Lenny correct and give your reason to support your response.