Learning about personal finance and economics is crucial for anybody to learn in order to make good financial decisions both right now and in the future. After taking economics, I have chosen the five most decidedly important topics that we have studied throughout the semester, which include: Budgeting, different types of insurance plans, how to have and manage good credit, how to write a resume, and finally how to pay taxes. Each of these topics relate to each other in someway and without knowing how to budget correctly, for example, you wouldn't be able to have good credit. Also, each of these topics is important and relevant for a specific reason pertaining to the fact that they will help me manage my financial decisions from here on out.…
school have no idea about how to pay bills, why employers take out payroll taxes, or how to save money for big purchases or retirement. We need to start having these conversations now so your student will be prepared for their financial future. This could explain why there are so many American families that are struggling and making it pay check to pay check and there seems to be no way out. They were never taught how to manage money and had to learn personal finance skills the hard way (aka…
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…
There are thirteen states in America that require students to take personal finance as a mandatory class. Many schools in America believe that students shouldn’t take personal finance because it doesn’t help the students to understand financial concepts. Personal finance is a class that teaches students to make financial decisions and responsibilities. It should be mandatory for students to take personal finance before graduating high school. Students should take personal finance because it…
Imagine yourself going to college, or moving out of your parent’s house without knowing anything about how to manage your money, make a budget, save money. It can be depressing. Most people say they learn personal finance by talking to their parents, who were also never formally educated about personal finance. High schools, however, are tremendously into making students college-ready, they failed to teach basic life skills, including financial literacy. So I think River Ridge High School…
In this paper, I will evaluate Alice’s goals by using the S.M.A.R.T. planning model and information which are introduced in the book Personal Finance by Rachel Siegel and Carol Yacht, Chapter 1 (2009). Evaluation has to be done on following: a. Pay off student loan b. Buy a house and save for children’s education c. Accumulate assets d. Retire e. Travel around the world in a sailboat EVALUATION a. Pay off student loan Alice has a significant debt obligation – Student loan of $53,000;…
CFO Tool 3 & 4 Whoever you are, and whatever income or debt you have, I think it is important to try to think of yourself like a business entity. Like a business you will have income and expenses. A balance sheet and an income statement tell a business what they are worth, defines income and spending, and also helps the firm set and measure goals. Both of these tools are useful for long term planning. A business is often measured by profits, and your budget is the same way. Since the…
Short-Term Financial Goals Preparing the personal financial plan, personal financial goals, and balance sheet and income statements felt like a daunting task. Primarily because finances were something that I always thought about, but I did not want to know the “real” truth regarding my financial health. The second principle of personal finance, “Nothing Happens Without a Plan” fits well in my situation because I persistently avoided viewing the entire picture when it came to our family’s…
When talking about personal finance, some of the most commonly asked questions are the definitions and differences among credit, credit report, and credit score. The topic of credit scoring is in fact a very interesting topic. People used to think of credit scoring as something purely associated with the purchase of expensive items, like a new house or a new car. But today, the importance of credit scoring has increased in such a way that it can affect even a person's chances of landing a good…
8. Are you more confident with your money after completing this personal finance course? Include examples and details. I was confident with our money situation before I took this course but I really enjoyed refreshing and learning additional stuff while taking this course. Knowledge is power and it gives me more understanding to make better decisions. Taking this course has given me to push to look more into 101 Financial. I think having a coach to keep us motivated will help with paying down…