Chapter 10 — Exercises

Money rules are concrete, which makes them learnable fast. These exercises drill the ones that trip newcomers most. Sample answers for closed items follow. (See Appendix D for the full tipping reference.)

A. What Would You Do?

Scenario 1: The US restaurant tip screen

You've had a $50 sit-down dinner in the US. The card machine offers 18% / 20% / 25% / No Tip. You: - (a) Choose "No Tip" — it should be optional. - (b) Choose ~18–20%, understanding it's effectively the server's wage. - (c) Leave $1 to be safe. - (d) Panic and overpay 40%.

Scenario 2: The fixed-price shop

At a US clothing chain, you want a discount, as you would back home. You: - (a) Haggle firmly with the cashier. - (b) Recognize chain-store prices are fixed; pay the price (or look for sales/coupons instead). - (c) Demand to see the manager about the price. - (d) Get angry that there's no bargaining.

Scenario 3: The salary question

You're curious what your new colleague earns. You: - (a) Ask directly: "How much do you make?" - (b) Don't ask — individual salary is private here — and instead ask "What do you do?" if you want to talk about work. - (c) Ask about their net worth instead. - (d) Guess out loud.

Scenario 4: The coffee-counter tip screen (new)

You buy a $4 coffee and the tablet spins around showing 15% / 20% / 25%, with the barista watching. You: - (a) Panic and tip 25% out of guilt. - (b) Recognize counter service tipping is optional — a small tip or "No Tip" is both acceptable — and choose without stress. - (c) Feel pressured and avoid the café forever. - (d) Refuse to ever use card again.

Scenario 5: The credit-history wall (new)

You try to rent an apartment or get a phone plan and are told your "credit" is too thin. You: - (a) Assume you're being discriminated against and give up. - (b) Understand that newcomers start with no local credit history — and act early: get a secured credit card, pay it in full monthly, and build a record. - (c) Pay everything in cash forever and never build credit. - (d) Borrow heavily to "show" you can.

Choose and justify each. Why is tipping in the US (Scenario 1) different from tipping in Australia? Why is counter tipping (Scenario 4) genuinely optional?

B. Decode This

  1. The "tip screen" at a coffee counter (vs. at a sit-down restaurant).
  2. "Service charge included" on the bill.
  3. "What's the damage?"
  4. "What do you do?"
  5. "Is there any flexibility on the price?"
  6. (new) "It's on sale" / "I got it on clearance."
  7. (new) "We don't take cash" / "card only."

C. Translate Between Cultures

Task 1 — From haggling to fixed-price. You're used to bargaining everywhere. For each, decide: negotiate or not, and how? 1. Buying a used car. 2. Buying groceries at a supermarket. 3. A job offer's salary. 4. A weekend flea market.

Task 2 — Reframe a money question. You want to understand your colleague's financial life out of friendly interest. Rewrite each rude question into something acceptable (or decide not to ask): 1. "How much do you earn?" 2. "How much did your house cost?"

Task 3 — Budget the real price (new). You have $100 in the US. You want to buy a $40 item and have a $30 restaurant meal. Estimate what you'll *actually* spend once sales tax (~8%) and a 20% tip are added — and explain why the "sticker" total of $70 is misleading.

D. Culture-Shock Journal

  1. Tax shock. Did US sticker-vs-checkout pricing surprise you? How do you budget for it now?
  2. Tipping feelings. How does tipping feel to you — fair, confusing, uncomfortable? What's your honest view of the US system?
  3. Money talk. How openly is money discussed in your home culture vs. here? Where's the taboo different?
  4. Your negotiating gift (new). If you come from a bargaining culture, where could that skill be an asset in the West (car, salary, rent) where locals often under-ask?

E. Ask a Local

Ask a Western friend: - "What do you actually tip for, and how much, here?" - "What money questions are considered too personal to ask?" - (new) "How did you build your credit, and what would you tell a newcomer to do first?"

Record the answer; compare to the chapter and Appendix D.

F. Self-Assessment

Rate 1–5: 1. I budget for tax on top of US sticker prices. 2. I tip correctly for my country (or check service charges). 3. I know what's negotiable (car/salary) vs. fixed (shops). 4. I have a card + app set up and am building credit. 5. I avoid asking people's salaries/net worth.

Note date and scores. (Appendix J collects the book's self-assessments; Appendix D is the full tipping guide.)

Sample Answers & Discussion

A: 1 → (b) — US table service ~18–20% is effectively the server's wage; "No Tip" (a) genuinely stiffs them. 2 → (b) — chain prices are fixed; haggling is awkward and the cashier can't change them (look for sales/coupons instead). 3 → (b) — individual salary is private; "What do you do?" (job) is the friendly version. 4 → (b) — counter/coffee tipping is genuinely optional; tip a little or not at all without guilt. 5 → (b) — build credit early and deliberately; thin credit is a newcomer reality, not (usually) discrimination. Why US ≠ Australia: US servers are paid a sub-minimum "tipped wage" and rely on tips as income; Australian workers earn a full wage and service is included, so tipping isn't expected there.

B — Decode This: 1 = counter/coffee tipping is genuinely optional ("No Tip" is fine); sit-down table service tipping is expected. 2 = a tip is already on the bill — don't double-tip. 3 = casual "what do I owe / what's the total?" 4 = "what's your job?" (normal) — not "what do you earn?" 5 = a polite way to test whether a price is negotiable. 6 = an enthusiastic, normal thing to share — deals/bargains are not taboo (only individual income is). 7 = many places are now cashless — carry a card/phone payment.

C — Task 1: 1 = negotiate ("what's your best/out-the-door price?"). 2 = don't — fixed. 3 = negotiate (expected — Chapter 19). 4 = negotiate (haggling is normal at flea markets). Task 2: 1 → don't ask directly; "What field are you in?" / "What do you do?" if you want work talk. 2 → don't ask; "Do you like the neighborhood?" instead. Task 3: ~$40×1.08 = $43.20 + ($30×1.08 = $32.40 + ~$6.50 tip ≈ $38.90) ≈ $82**, not $70 — because tax (both) and tip (the meal) are added after the sticker price.

D, E, F are personal — your honest reflection is the answer.