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The issue I notice is that you are creating variables at the class level then you are creating them again within methods. This means that the one at the Method level will get discarded when the method ends so none of the class variables will have any of the information saved to them. I may be wrong but I am not sure why you would want to create class level variables within the main class. I think class level variables are used more in Objects where you have accessors and mutators to assign or get values from private variables.

Code:
import java.util.Scanner;

public class ExampleOfVariableLevels
{
  // This is a class level variable
  String usrName = "";
  
  // Create scanner object.
  Scanner usrInput = new Scanner(System.in);

  public static void main(String[] args)
  {
    ExampleOfVariableLevels ex1 = new ExampleOfVariableLevels();
    ex1.init();
  }
  
  public void init()
  {
    example1(); // No value will be stored into usrName since any value is discarded after method ends and not saved into variable
    System.out.println("This is value of variable: " + usrName);
    
    usrName = example1(); // Value is returned and saved into usrName at class level.
    System.out.println("This is value of variable: " + usrName);
    
    example2(); // Since method did not create same name variable it just saved the data into the variable
    System.out.println("This is value of variable now: " + usrName);
  }
  
  public String example1()
  {
    String usrName = "";
    
    System.out.print("Please enter your name: ");
    usrName = usrInput.nextLine();
    
    return usrName;
  }
  
  public String example2()
  {
    usrName = "";
    
    System.out.print("Please enter your name: ");
    usrName = usrInput.nextLine();
    
    return usrName;
  }
}
I hope the example clarifies things a little bit. I am sure someone with more experience can explain why not to do certain things.