Financial Literacy Reflection

1. What are the costs and benefits of credit, such as loans and credit cards?​ One benefit is
that it allows people to buy things that would otherwise take much longer like homes and
cars. It can also allow people to pay an expensive bill like a medical bill. Some negatives are
that fees are usually added on so you are paying more when you pay the loan back. This can
also lead to debt problems if you can’t pay it all back.

2. How can you use credit responsibly to achieve your financial goals?​ By only using it when
you have to and you are sure you will be able to pay it all back.

3. What taxes do citizens pay and how are they calculated?​ Some taxes citizens pay are
income tax, property tax, and sales tax.

4. How can insurance help protect your financial future?​ Because it helps you deal with any
unexpected costs you have to pay that you might not be able to afford.

5. How does setting goals and budgeting help you achieve financial success?​ It is smart to set
goals because it can help you stay on track with what you want to accomplish. Budgeting is
smart because it helps ensure you have enough money to pay for all the things you need.

6. How do maintaining healthy finances affect your overall physical and emotional health?
When you are healthy financially it relieves a lot of stress because you are not as worried
about paying bills and things like that.

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.​ By planning out what I want to
do and making sure I have enough to do so beforehand. Also by not spending money on
things I don’t need or want that bad. Another way is by doing research before paying for
something that is expensive and make sure it is the right decision to get it.