Personal Finance Essay

Despite the importance of finance, accounting, and consumer intelligence, these topics are typically neglected in high schools. Unfortunately, personal finance is often learned by trial and error. The problem with this method of learning is that it only takes one costly financial mishap to set you back for years. This is why I created a basic personal finance book for total beginners. With these concepts you can use the other books in the Smart Money series to further build your knowledge of personal finance topics.

Daily economic activities have an important influence on personal financial planning. In our society, the forces of supply and demand play an important role in setting prices. Economics is the study of how wealth is created and distributed. By doing my research, I found that each economic situation would affect me at a personal level.

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes, working with financial institutions, wise use of credit cards and consumer loans, financing automobiles and homes, and the use of insurance for protecting one’s family and property.

So often we hear about teaching the whole child. Today, more than ever, personal finance knowledge and awareness are a critical part of what it means to teach the whole child.

The goal of this course is to get you thinking about personal finance issues at a point in your life when you still have time to benefit from the power of time in generating wealth to accomplish your other life goals. The financial decisions you make early in life with determine in great extent the quality of life you will enjoy later, especially given the turbulent and uncertain economic conditions. Money isn’t everything, but a lack of it will impact almost every aspect of your life and those who surround you.

Personal finance is having a financial ability to make decisions and act on certain activities for oneself. These decisions and activities can be from budgeting, saving, investing, handling debts and mortgages, and much more. It is important for each individual to be able to manage their money for their own future and understand how credit cards work, being able to get out of debt such as student loans, and to be able to invest and save their finances. Economics has a huge impact on how we spend and budget ourselves yet if we are not careful, we would be in a difficult situation that would be tough to get out of. Credit cards can either break us or make us depending on how we handle them. Student loans are something that most graduates will

Financial decisions are something everyone faces like buying a car to figuring out how to pay for students loans or debts. We are not taught about these types of financial decisions and how to go about them from a young age. In the news article Working Financial Literacy in With the Three R’s by Tara Siegel Bernard, she talks about how more states are beginning to require a personal finance instructions class. In the article Finance Course Prompts Debate by Gina Davis, she suggests incorporating financial elements into already required classes.

Many adults and teenagers living in the present day still do not know why saving money is important. As much as we all hope emergencies won’t happen, the truth is we all know that sometimes they are unavoidable. If you do not have a safety net to lean on when these problems arise they can rapidly turn into additional debt and loans. Setting a little money aside will assist you when these life emergencies arise. Saving money also helps people achieve and aspire to their personal, social, political, and environmental goals. Once you have enough money saved you can become financially independent and able to make your own choices about how to spend your money. Additionally, saving money gives you peace and satisfaction. Knowing that you have your finances in control feels commendable. Not having to worry about sudden emergencies or costly repairs lowers your stress levels. Saving money helps in sudden emergencies, assists

Future initiatives with financial education can change the landscape of an individual’s life and the economy in which we live. If there is limited focus on learning about personal finances we continue to set our economy up for constant failure. There is a substantial amounts of education provided to school age children that does not directly impact their financial education for their future. In high school individuals learn

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

My introduction to the world of personal financial planning began in the summer of 2012 when I enrolled in a Personal Financial Management course at The University of Texas at Dallas. Prior to this course, personal finance was a topic that I had always taken a deep-rooted

Over 5,000 hours of high school yet balancing a checkbook, saving for retirement, and how to do taxes did not come up once. That is likely why Time Magazine reports 2 out of 3 people do not know how much money they need to retire, tax preparation is a $9 billion industry, and why financial literacy is more important than ever. Personally financial literacy is important because it allows me to take control of my finances rather than entrusting them to someone else. It allows me to understand, for example, retirement, so I can plan for it rather than hoping everything turns out

In financial planning, one must consider both the personal and business aspect of the profession. Without recognizing both, an advisor cannot expect to grow their business and expand their client base. The personal aspect allows advisors to better engage and connect with clients. In turn, an advisor hopes this leads to an increase in business. However, when considering the business aspect, an advisor must also recognize what is harmful or beneficial to his practice. As we said in class, we have to keep the lights on. Naturally there are strengths which apply to both aspects, while there are strengths mutually exclusive to only one aspect. My top three strengths relate to both the business and personal aspect of financial planning. The fourth

Financial literacy is the ability to understand how money works in the world. It involves the confluence of financial, credit and debt management and the knowledge that is necessary to make financially responsible decisions. It shows how people spend, save, invest, and donates their money. Knowing about financial literacy is important because it is how you manage your money and become financially stable. From learning about finance, you will be able to chose the most beneficial insurance plan for you.