Discussion 5.

I have a credit card that I make use of frequently to make purchases when I do not have

money in my bank account. The advantage is that it enables me to buy now and pay later, get

loans free of interest, the purchases I make are protected, and I get rewards such as cash backs.

Nevertheless, its demerits arise because I have the possibility of incurring debts; it has limited

usage and also comes with fees and charges (Punjwani, 2019). Nevertheless, the merits outweigh

the disadvantages in that the demerits are avoidable. For instance, I can get a card that matches

my needs and this means that I will not have limited usage.

Discussion 6.1

I know how to find my credit score because I have used the service before to understand

my creditworthiness. The last time I checked, my rating was 800 and this meant that I was a low

risk to the lender. There are three major credit reporting agencies including Equifax®,

Experian®, and TransUnion®. These institutions give credit reports, once every year. Also, they

are required to give one a credit report within 60 days once someone has been denied credit

(Wells Fargo, 2020). I now understand that I need to check my credit rating and score regularly

to protect my credit rating in the future.

Discussion 7.1

Every time I make a major purchase, I do so in a series of steps to ensure that I make the

right decision. First, I start by recognizing my needs and wants. For instance, I need a car to go

to work and this becomes a need unlike when I want to upgrade to match my colleagues at work.

In this case, the need outweighs the want. When I have determined that I need the product, I then
search for information about the choices, considering factors like the cost and performance and

here I even seek information from friends. I then evaluate the choices before making a purchase.

Discussion 8.1

I live rent-free with my family members and this is a decision I have made after making

several evaluations. One of these considerations is the cost of living and this comes in handy

with not paying rent. Also, I desire to live in close proximity to my family members and friends.

Additionally, the place is close to my school and this means that I can even walk to school and

therefore avoid incurring transportation costs. The only disadvantage is that I lack privacy in my

living situation.

Discussion 9.1

Currently, I live with my family members and this is the reason why I have not purchased

homeowner’s or renter’s insurance. In the next few months, I am planning to move out and rent

my own place. When I do so, I will purchase a renter’s insurance policy. Renter’s insurance

coverage will be beneficial to me in that it will cover the damage or theft of my personal

property. Additionally, the cover will protect me against liability damages as well as emergency

medical expenses for any guests who come to visit (Allstate Insurance Company, 2020).

Discussion 10.1

I do not have a health insurance plan because I am covered in my parent’s plan. However,

in the future, I will consider purchasing a Medicare health insurance plan to cover myself from

health uncertainties. I might consider Medicare Advantage plans, Medicare supplement

insurance plans or even Medicare part D plans ("Finding Health Insurance", 2020). Securing an

insurance plan will be necessary because it will enable me to receive more medical care and
timely care compared to uninsured persons. Additionally, in case of an illness, I will not drain

myself financially, as well as my family.

 References

Allstate Insurance Company. (2020). Allstate Insurance Company Renters Policy. Retrieved 24

March 2020, from https://insurance.mo.gov/consumers/home/documents/AP5.pdf

Finding Health Insurance. (2020). Retrieved 24 March 2020, from https://www.usa.gov/finding-

health-insurance

Punjwani, M. (2019). Advantages and Disadvantages of Credit Cards by MoneySupermarket.

Retrieved 24 March 2020, from https://www.moneysupermarket.com/credit-

cards/advantages-and-disadvantages/

Wells Fargo. (2020). What is My Credit Score - How to Check Your Credit - Wells Fargo.

Retrieved 24 March 2020, from https://www.wellsfargo.com/financial-education/credit-

management/check-credit-score/