Sushi Money

CNN/Money has a “Money and Ethics” quiz written by Jeanne Fleming and Leonard Schwarz that consumers can take and see where they stand compared to other individuals taking the quiz. I found it fun and very interesting, but also disagreed with some of the statements by the authors. If you want to see it for yourself, take the quiz! I decided to go through the questions here to some degree, but didn’t include many of the comments by the authors. Overall I think this is a great quiz or survey and would provide some interesting data for a research project. But here’s how I did:

1. You are doing some home improvement and the tile guy says he’ll give you a 20% discount if you pay in cash… and you think he’s probably doing it so he doesn’t have to report it… How do you pay? I said pay in cash and take the discount. As of today 67% of respondents agreed and said they would also pay in cash. But Money says that is “abetting a thief.” I don’t think so… they are trying to tie the tile workers behavior and choices to my decision to pay in cash in this case. If the worker is asking for cash for doing a job, and giving me a discount to pay in cash… then economically that is perfectly fine. What HE does with the cash is his choice, and a business decision for his company. I am not responsible for his actions or behavior… I am paying him properly with U.S. dollars for work done on a remodeling job. I suspect the “cash economy” in many parts of this country is enormous. I don’t sanction not reporting income, and I don’t believe in helping someone else make illegal decisions. But I do believe I can pay anyone cash in U.S. dollars for work accomplished without being labled as “abetting a thief.”

2. You’re selling your home and get wind of a possible assessment by City Hall to make your neighborhood more attractive… do you tell prospective buyers? Yes, absolutely. Assessments are part of life, and besides- if it’s something to improve the quality of the neighborhood, it should improve the long-term values of the properties. Proper disclosure on real estate forms is important- I don’t want any surprises and neither do other prospective buyers. 60% of the respondents agreed.

3. You’re being considered for a job or promotion… would you flirt with the boss or person making the decision? I said absolutely not, and 80% of people agreed. Networking, being friendly and flirting can cross many shades of gray… but cozying up too much is absolutely wrong. Performance and professionalism are much more important.

4. Similar question… but would you SLEEP with your boss or a person that could help you get a job or promotion? Uh… no, absolutely not. 94% of the respondents agreed on that one.

5. You’re having dinner with an old friend… that friend makes a lot more money than you do. Who pays for the check? The question didn’t frame how the dinner came about, but I said you should split the check. Other choices included the friend should pay, or pay more. 87% of folks agreed with splitting the check.

6. How often have you not left a tip for a waiter/waitress who gave bad service? I said once or twice, to which 38% of people agreed. 33% of people said they’ve never done this, and 21% said occasionally. Surprisingly, 8% said they’ve done this frequently! Personally, service would have to be really poor before I would do this… and not just because the food wasn’t right, or took too long. If a waitperson had a really bad attitude, was rude, etc. I would probably get up and leave the restaurant after talking with the manager.

7. This question talks about inheritances. Your older mother, a rich widow, is giving away some of her money to charity… you always thought you’d receive most of it. Is this fair? Is it her business? I said it was strictly her business, and 76% of folks agreed. I might think otherwise if she was having problems handling her financial affairs, and would then seek help for her. But otherwise, it’s her bucks…

8. What’s the most amount of money you ever lent to a friend or relative? I was with 11% with over $5000 only because I helped a family member with a real-estate purchase. Otherwise I would probably be in the $500-$1000 range. But the other 25% were in the $1000 - $5000 range, 14% in the $500-$1000 range, and 26% in the $100-$500 range. The remaining 25% was less than $100.

9. Should you charge interest for loans to relatives? I said yes, you should! But most people disagreed and I was out of step on that one in the 10% minority. My reasoning, which the authors didn’t address, was primarly about the IRS rules for personal loans. If you loan a large sum to a relative (exceeding $12,000) , you could be making a taxable gift to them! To qualify as a loan, you need to make sure to use the Applicable Federal Rate as established by the IRS each month. That rate is a fair rate based on prevailing interest rates. When I loaned money to a family member for a home purchase, I ensured we drew up a detailed contract and used the Applicable Federal Rate. At tax time, I had to report the interest earned on that loan the previous year as income. But if I did the question again, I would take it at face value for smaller sums of money… and no, I would not charge interest to family members in that regard.

10. If a family member dies, there’s always someone who wants more than their share. Agree, disagree? I agreed somewhat, as did 48% of other people. Surprisingly, 38% of the quiz takers strongly agreed with that statement. Usually when estates are divided, there are strong feelings in many directions… inevitably someone seems to want more than others. It may be greed, or it may simply be their way of holding on the the love of the memory for that person.

11. You should never let your relatives know how much money you have? Agree, disagree? I also agreed somewhat, as did 47% of other folks. 35% of people strongly agreed with not telling relatives how much money you have. It’s great to know your family members well and be close to each other. But it’s also important to maintain some privacy about your personal affairs. Now, if you don’t have a cent to your name… they probably already know that!

12. You borrow a neighbors mower and it breaks while you’re using it. Do you pay to fix it? All of it? Some of it? I said to offer to pay all for fixing it. 53% of folks agreed, but 25% said they would split the costs, and 21% said they would pay for some of it! My view is that if I borrow something… then whatever happens to it while I’m using it is my responsibility. It may have been ready to break down… but that doesn’t matter because I borrowed it. I’ll return it in good working condition.

13. Have you ever taken home office supplies, pens, etc. from work? I said yes, occasionally. Only 29% of folks agreed with me… 39% said once or twice, and 29% said never. 3% of folks said frequently! I was tempted to say “once or twice” but as I thought back honestly over many years, I know my briefcase included pens or pencils from the office, notepads, etc that came from the office. Most of the time this was perfectly legitimate while completing work at home. But it can cross the boundary if one is not careful. We need to make sure our “ownership” for our job and responsibilities does not included “owning” property of the company. Really though, some jobs encourage this more than others depending on the work situation.

14. Should you ever let co-workers know your salary? I said sometimes… which most people agreed with. It’s really none of their business, but in some work situations everybody knows the general salary range for each individual. Sometimes while mentoring younger workers you can help motivate them by helping them understand salary goals and possibilities.

15. Would I work for a company that I thought was doing serious damage to the environment? I said no, I wouldn’t to which the majority of people (43%) agreed. 39% agreed somewhat with the statement. But this question is based on one’s personal views and perspective of what “damaging the environment” means. Some people believe oil and logging companies are evil destoyers of the natural world, while others- myself included, see these companies as being in business to make money and serve a purpose… I believe we can do so in sustainable fashion, and with laws and regulations that balance our needs with that of taking care of the world around us.

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