Business Case Studies & Business Publications

Living the "Unbanked Life": Maria

Eades, Kenneth M.,...

Case

Living the "Unbanked Life": Maria

Eades, Kenneth M.; Sinclair, Safiya; Fairchild, Gregory B.

F-1892 | Published August 5, 2019 | 10 pages Case

Collection: Darden School of Business

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This case follows a woman named Maria Alvarez as she explores financing options to cover costs for her young daughter's surprise respiratory illness. Alvarez has not opened a bank account since moving to the United States from the Dominican Republic two years prior and has little savings from her job. She lives paycheck to paycheck without a credit card or credit history, to her knowledge. Should Alvarez get the money she needs through a payday loan, which wouldn't require her to have a bank account, or should she explore what it would be like to join a financial institution and get a personal loan through it?

The case is designed to be taught in a financial literacy course for non-MBA audiences. The expectation is that the instructor will use the case as an introduction to several concepts that will be explored in further depth throughout the program, such as the following: - The benefits of joining the financial system and opening a bank account - The risks of abusing credit: payday loans and credit cards - The importance of maintaining a positive credit history