Financial Literacy Reflection

1. What are the costs and benefits of credit, such as loans and credit cards?

A benefit of credit includes that even when one is unable to afford goods with cash or money they

already have, one is able to use credit in order to purchase the goods now and pay for it later. The

problem with credit is that goods accumulate interest overtime which means one will end up paying

more for the goods than they would have originally paid due to the extra interest.

2. How can you use credit responsibly to achieve your financial goals?

One can use credit responsibly to achieve their financial goals by paying back bills on time, closing

accounts that accumulate high interest rates, using credit cards to pay for smaller items, etc. By doing

all of these things, one will be able to accumulate a better credit score as they are earning “trust”

with the bank.

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

Citizens pay Federal Income Tax, Federal Payroll Tax, and State and Local Income Tax. The Federal

income tax is based on the amount of money one makes. If someone has a lower income, then they

will owe less of a federal income tax than someone who has a higher income. Federal Payroll taxes

pay for things such as social security and medicare. For federal payroll taxes, all citizens are required

to pay the same amount of money. State taxes are taxed based on the amount of money one is

earning within the state. Local taxes are set in place for people who live in a specific area and those

taxes then pay for local programs, community improvement, and parks. Sometimes the local income

tax is paid by the employers whereas some locations require a flat rate to be paid by all employees.

4. How can insurance help protect your financial future?

Insurance can be used to help protect against financial failure as insurance companies

accumulate a pool of funds that can be used to deal with risk. When individuals face financial

issues, insurance is able to cover the amount they cannot pay but they will then have to pay

additional costs.

5. How does setting goals and budgeting help you achieve financial success?

Setting goals and budgeting will help achieve financial success as it will help one

plan to make sure they can afford the purchases to accumulate great credit scores,

learn how to save funds, and be prepared for any financial struggles.

6. How do maintaining healthy finances affect your overall physical and emotional

health?

Maintaining healthy finances affects one's overall physical and emotional health as

they will be able to afford things such as medical care, be supported by disability

insurance if they become impaired, and will have their property covered if any

damage is to occur. Having adequate finances will allow people to live a more stress

free life as they will be less worried about potential hardships and instead feel

comforted as their expenses will be covered.

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 to make sure I am developing healthy financial practices by sticking to a specific

budget, paying for small items with credit, and making sure to pay all of my bills on

time. By sticking to a specific budget, I will always be aware of the money I have to

spend so I will never overspend and end up in debt. Secondly, by paying for small
 items with credit, I will easily be able to pay them back which will then improve my

credit score. Lastly, paying all of my bills on time, I will ensure that I will be trusted

with loans and also build a good credit score.

Financial Literacy Reflection Rubric

Category 4 3 2 1

Organization Information is Information is Information is The information

well-organized in organized in a Q somewhat is not
a Q & A format. & A format. organized organized.
Each question is Each although Q & A Information is
answered in question is format is not not answered in
two to three answered in at used. Each Q & A format.
complete least one question is
sentences. complete answered in less
sentence. than one
complete
sentence.

Quality of Information Information Information Information has

Information clearly relates clearly relates relates to the little or nothing
to the to the questions to do with the
questions and questions. It although questions. No
utilizes uses information details and/or
information information from videos is examples are
from videos. It from videos. It missing. given.
includes provides Limited detail
several relevant relevant and/or
supporting supporting examples are
details and /or details and/or given.
examples. examples.

Mechanics No Two or less Three to five More than five

grammatical, grammatical, grammatical, grammatical,
spelling or spelling or spelling, or spelling, or
punctuation punctuation punctuation punctuation
errors are errors are errors are errors are
present. present. present. present.

Total Points Possible: 12

Total Points Earned: _____

A 11-12 points
B 9-10 points
C 6-8 points
D 3-5 points