Financial Literacy Reflection

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

 A benefit of using credit is being able to borrow a certain amount of money instantly.
However, you have to pay the amount of money you spent back (maybe even more due to
interest) in a certain time frame. A cost of using credit is having the potential to overspend
easily, which leads to expensive debt if not paid in full, as well as credit score damage if you
miss payments.

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

The three steps to using credit responsibly are minimizing debt, knowing your rights, and
building a good credit score. To accomplish these things, you need to make sure that you pay
back your loans in full and on time. Some other ways to build good credit include using a
variety of credit, making sure all your information on your credit history is accurate, and
seeking help when in debt.

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

The three main taxes that all citizens have to pay are federal income tax, federal payroll tax,
and state and local income tax. Each tax is calculated differently. For instance, federal
income tax is calculated based off a citizens annual income. The more money you earn, the
larger the percentage you have to pay. Federal payroll tax includes Social Security and
Medicare, where all citizens pay the same percentage of their income. Finally, state and local
income tax is calculated based on the specific place you are in. In a few states, you don’t have
to pay an state and local income tax. However, in the majority of states, you do have to pay
the tax, which varies between each state.

4.  How can insurance help protect your financial future?

Insurance is a financial service that allows a consumer to share liability with a company. It
offers protection from the costs of unplanned events and helps manage financial risks.

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

Setting goals and budgeting may keep you motivated and accountable, so you spend less
money and stick to your budget. It is important to constantly remind yourself about your
monetary goals so you make smarter short-term decisions, which will help you invest in your
long-term goals.
6.  How do maintaining healthy finances affect your overall physical and emotional health?

Things such as taxes, insurance, and budgeting can be stressful sometimes. However, if you
keep yourself up-to-date with everything that is happening with your finances, you will feel
more organized and responsible. Paying your credit card bills in full and on time will also
bring you a sense of ease and comfort.

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 creating a spending plan/budget for myself. This will allow me to know exactly
how much money will be put into certain areas of my life. Making sure I have insurance is
also another financial practice I will use. Sometimes, things happen unexpectedly in life, so
having insurance will make me feel more comfortable knowing that my finances are secure
in case something happens in the future. Finally, I will start saving for my retirement right
now. When budgeting, I will make sure a small portion of money is dedicated to retirement.
Due to compound interest, even when the rates are low, someone who starts to save for their
retirement early doesn’t have to save as much as someone who starts saving later in their life.

 
 
 
 
 
 
 
 
 
 
 
 
  
 Financial Literacy Reflection Rubric
Category 4 3 2 1

Organization Information is Information is Information is The information is

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

Quality of Information clearly Information clearly Information relates to Information has

Information relates to relates to the the questions little or nothing to
the questions and questions. It uses although information do with the
utilizes information information from from videos is questions. No
from videos. It videos. It provides missing. Limited details and/or
includes several relevant supporting detail and/or examples are
relevant supporting details and/or examples are given. given.
details and /or examples.
examples.
Mechanics No grammatical, Two or less Three to five More than five
spelling or grammatical, spelling grammatical, spelling, grammatical,
punctuation errors or punctuation errors or punctuation errors spelling, or
are present. are present. are present. punctuation errors
are present.
 

Total Points Possible: 12 

Total Points Earned: ____

A 11-12 points          

B 9-10 points             

C 6-8 points               

D 3-5 points