Financial Literacy Reflection

1. What are the costs and benefits of credit, such as loans and credit cards?
There are many costs and benefits to using credit. When you use credit you agree to pay the

borrower back the money within a specific time. Using credit and credit cards can also help

increase your credit score if used properly. Loans can also do the same thing as long as you pay

it back as agreed.

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

You can use credit responsibly by paying your bills on time, checking your credit score

information to make sure it is correct, only borrowing what you need, and trying to pay off the

amount as soon as possible.

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

Some taxes that citizens pay are sales tax and property taxes. Sales taxes are collected by the

state and local government, and property taxes are collected by the local government.

4. How can insurance help protect your financial future?

Insurance can help your financial future by offering protection from unplanned events and

helps manage financial risk.

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

Setting goals and budgeting can help me achieve financial success by helping me save money

for the future and for emergencies. It can also help me be prepared to use credit cards if

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

Maintaining healthy finance can affect my physical and emotional health in a good way if I

manage my finances correctly. It can and will lower stress and anxiety even when the money is

needed urgently.

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.

My plan is to make a daily budget on things to spend and not what to spend. First, I can

calculate the necessities needed to be paid off and then figure out how much money I spend on

the things I want then what is needed. Second, I can take out an overall amount of money per

paycheck each month for savings. And lastly, develop small and long-term goals in what I want

to buy in the near future or later.