Financial Literacy Reflection

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

The pros of credit cards range from convenience and credit building to financing,
rewards and cheap currency conversion. The cons of credit cards include the
potential to overspend easily, which leads to expensive debt if you don't pay in full,
as well as credit score damage if you miss payments.

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

I will not spend too close to my limit.

I will have a strict budget for myself.
I will not miss payments.
I will pay off my entire balance.

3.What taxes do citizens pay and how are they calculated? State tax and federal tax -

Some examples of taxes citizens pay are Income taxes, sales taxes, excise taxes, payroll
taxes, property taxes, and estate taxes. These are created by calculating adjusted gross
income (AGI) and taking the total household income and reducing it by certain items.
Next, from AGI they subtract exemptions and deductions to get your taxable income.

4. How can insurance help protect your financial future?

Being prepared for the unexpected will ensure that you can still reach your goals after facing
a financial crisis. An insurance policy will keep you from emptying your emergency fund.
Insurance can also protect your loved ones if you're injured in an accident, become sick or
disabled, or die.

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

Setting concrete goals may keep you motivated and accountable, so you spend less money
and stick to your budget. Reminding yourself of your monetary goals may help you make
smarter short-term decisions to invest in your long-term goals. When your life goals change,
your financial plans should follow suit.

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

emotional health?
When you get financially healthy, the physical problems you experience are likely to
improve. Without your body being healthy, you can’t do your work right. “Health is the first
wealth.”

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.

1. Plan for expenses.

2. Reduce or eliminate expenses.
3. Save for future goals.
4. Spend wisely.
5. Plan for emergencies.
6. Prioritize spending and saving.
7. Keep your health as a number one priority.