Financial Literacy Reflection

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

The benefits of having a credit card are being able to finance your purchases. The bank
lends you money through your credit card with the promise of returning it in a certain
time so as not to generate interest. Loans are important because you can finance bigger
purchases such as cars and homes. The costs would be that purchases can gain
interest if not paid back in a certain amount of time.

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

To use credit responsibly, it is important to make a budget and follow it. In addition, one
should be responsible when making purchases as to not buy things they cannot afford
by measuring one’s ability to pay. Lastly, one should be careful when accepting to be a
co-signer so as not to be put into debt if someone else cannot make their own
purchases.

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

Income tax is collected directly from each person's salary. The amount that is deducted
depends on the employee's instructions when they make their W 4 form for their
employer.

4. How can insurance help protect your financial future?

Insurance can make sure that if there’s an accident, someone will be covered financially
and will not have to make a big out of pocket payment.

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

Setting goals and budgeting is important for financial success because if you manage
your money well you can achieve something you want and not be in debt.

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

Having healthy finances helps overall physical and emotional health because it takes
away stress. Many people can get anxiety and stress from debt so being financially
stable will promote a healthy lifestyle.
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 will save my money as much as possible for important things. I will also spend on
items that are necessary such as food and cleaning products. I will also make sure to
have a budget, so I won’t overspend.