Juan Diego Gonzalez

Financial Literacy Reflection

1. What are the costs and benefits of credit, such as loans and credit cards? There is an APR
interest fee

2. How can you use credit responsibly to achieve your financial goals? Investments and credit
loans can help you build credit and achieve your financial goal. When seek a loan it reflect
on your credit report and if you have pay it on time it will reflect as god credit.

3. What taxes do citizens pay and how are they calculated?

Income and property taxes. Taxes Are Calculated. First, we calculate your adjusted gross

income (AGI) by taking your total household income and reducing it by certain items such as
contributions to your 401(k). Next, from AGI we subtract exemptions and deductions (either
itemized or standard) to get your taxable income.

4. How can insurance help protect your financial future?

When a payout is required for an event, you are compensated from the pool. Insurance
providers make money by taking in more premiums than they pay out. You can protect
your assets compensation for damage or loss.

5. How does setting goals and budgeting help you achieve financial success? Being financially
prepared can help you achieve more than someone who isn’t financially prepared.

6. How do maintaining healthy finances affect your overall physical and emotional health? It
gives you peace and mind that you can afford a lifestyle and not be stressed with debt. There
are financial software programs designed to help you maintain your finances.

7. What is your plan to develop healthy financial practices? Discuss three ways that you plan
to make healthy financial decisions to protect your future.
I plan on saving as soon as I start working at my first job .
I plan to purchase life insurance and property insurance to protect my assets . I will make
financial decisions based on needs and not wants.