Economy plays an important role in the personal finance for every individual. Personal finance is how individuals make investment choices to gain wealth, and it will helps to understand economics, so we know how economic conditions impact our investments such as stocks, and bonds. In 2008, when the economy crashed, everything got effected especially the automotive industry and real estate market. The unemployment rate was the highest it’s been since the Great Depression. This situation effected everyone including me.
Government Role
Public finance is when the government pays for the services it provides to the public, such as, schools, roads, social security benefits, and many more. Every year we file our taxes to the government through …show more content…
Credit has many ways to be used such as a loan to buy a house, car, or business. Credit can be used for personal purchases. Your credit card score has a major effect on companies’ decisions like insurance, banks, even when applying to new job. I prefer using credit over debit when making purchase because with my credit use I can get cash back, signup bonuses, Frequent-Flyer Miles, points, Universal Acceptance, and building a credit. Credit card use comes with a cost like paying interest if I don’t pay the whole balance at the end of month. One of my credit charge me a monthly fee even if I don’t use the credit card along with APR annual rate interest. Credit is either closed- or Open-End. Closed end is used for a specific purpose, specific amount, and for a specific period of time. Payments are usually of equal amounts. Open end credit is a prearranged loan for a specific amount that you can use by writing a special check. Repayment is made in installments over a set period, and the finance charges are based on the amount of credit used during the month and on the outstanding …show more content…
This declining made me rely on credit cards to make some payments, and also purchases. Credit card gave me an opportunity to pay essential payment like DTE, and sometimes my house payment. On the other hand it gave me the feeling that I can afford anything even if didn’t buy them before. This combination of advantage and disadvantage of the use of credit card load me with a big balance on my credit, but at the same time saved me from having no electricity.
With all of the advantage and disadvantages of the credit card, I will use my credit in the future, but I will limit the use of it. My credit card will be included in my budget, so I can achieve my short and long term goals. As for the type of credit I will use, which would be loans, like purchasing a house, or a car for my daughter. As for purchases I will only use my credit card if I know I will pay it in full at the end of the month to avoid interest. Keeping a record of my expense to know if have a surplus or shortage to know what expense to
Government Role
Public finance is when the government pays for the services it provides to the public, such as, schools, roads, social security benefits, and many more. Every year we file our taxes to the government through …show more content…
Credit has many ways to be used such as a loan to buy a house, car, or business. Credit can be used for personal purchases. Your credit card score has a major effect on companies’ decisions like insurance, banks, even when applying to new job. I prefer using credit over debit when making purchase because with my credit use I can get cash back, signup bonuses, Frequent-Flyer Miles, points, Universal Acceptance, and building a credit. Credit card use comes with a cost like paying interest if I don’t pay the whole balance at the end of month. One of my credit charge me a monthly fee even if I don’t use the credit card along with APR annual rate interest. Credit is either closed- or Open-End. Closed end is used for a specific purpose, specific amount, and for a specific period of time. Payments are usually of equal amounts. Open end credit is a prearranged loan for a specific amount that you can use by writing a special check. Repayment is made in installments over a set period, and the finance charges are based on the amount of credit used during the month and on the outstanding …show more content…
This declining made me rely on credit cards to make some payments, and also purchases. Credit card gave me an opportunity to pay essential payment like DTE, and sometimes my house payment. On the other hand it gave me the feeling that I can afford anything even if didn’t buy them before. This combination of advantage and disadvantage of the use of credit card load me with a big balance on my credit, but at the same time saved me from having no electricity.
With all of the advantage and disadvantages of the credit card, I will use my credit in the future, but I will limit the use of it. My credit card will be included in my budget, so I can achieve my short and long term goals. As for the type of credit I will use, which would be loans, like purchasing a house, or a car for my daughter. As for purchases I will only use my credit card if I know I will pay it in full at the end of the month to avoid interest. Keeping a record of my expense to know if have a surplus or shortage to know what expense to