Financial Literacy Reflection

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

Most credit cards are free. Some credit cards have an annual fee, if you do not pay your bill
on time you acrew interest and have to pay that fee. The benefits of having a credit card are
to establish credit for yourself so you can buy cars and homes etc.

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

By paying your bills on time and building credit.

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

It depends what state you live in. California has a 7.25% tax rate.

4. How can insurance help protect your financial future?

If you were in a bad accident you have coverage, if your house burns down you have fire
insurance. Homeowners insurance insures if someone were to get hurt on your property
you have coverage and are protected.

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

Setting goals and budgeting helps you achieve financial success by keeping you in line
financially and setting boundaries to achieve what your goals are.

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

By maintaining healthy finances you keep yourself in check with healthy boundaries, know
your limits to allow you to live a stress free life.

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 have a savings account and I save a certain amount of money each month. I do not
overspend money I do not have. If there is an emergency situation I know I have that money
in my savings account to cover it. I do not use credit cards, I save at least half of my earnings,
and I pay my bills on time.