Reflection Paper For Finance - Grade B+ 6/3/18 Professor Introduction (185) PDF

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Final reflection over all chapters covered from the online personal finance course. ...

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Finance 6/3/18 Professor

 Reflection

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Introduction (185)

Financial Literacy means that you can understand basic financial concepts and are able to manage your personal finances. As a college student, who works at a part time job in the food industry , my income is clearly not high. Even though understanding finance is a valuable skill , throughout my life I was taught little about personal capital. I am not one to spend my money on things I don’t need and I have budgeted how I acquired my income into the expensive modern lifestyle. I have the great privilege to attend a college with scholarships and my parents help. However, I am also faced with heavy student loans that will impact my future. Students who are financially literate will have a easier time navigating their loan repayments after college. But even without student loans, the financial realities of adulthood are becoming tangible as each individual faces diverse life challenges each day. I recommend this course to students because it gives others an intensive curriculum that allows learners to view financial decisions and real life situations through traditional classroom activities, technology and limited real world practice. Goals (316)

As a student and part time worker, I know that I should save money for my short term and long term goals. My short term goals insist on; Saving up 10,000 dollars this summer for a new apartment, an emergency fund for 5,000 dollars and to get licensed in real estate. For my first two goals, I will be having multiple incomes in order to make money and then save the money that I don’t use on groceries and bills, as well as get a new occupation to earn more money. I am going to save 100 dollars from each paycheck if I can in order to save quickly. My hopes for this summer is to work as much as I can and to budget so that more money can go into savings. For my last goal, I will be paying little by little for my license in real estate. I will make a budget consisting of savings and make sure that this financial goal is measurable and realistic. With the help of my parents and my internship, I believe I can pay it off before September. Despite the bitterness, financial planning is logical and important. Based off of my observations, everyone that I had interviewed on financial goals had something they would like to enjoy such as vacation and an expensive housing/car. Also, the goals were reflecting a need as well. A motivational drive to what the individual desires. These goals were realistic, specific and

measurable according to their lifestyle. In addition, most people also had a debt they still owe. Before we can enjoy or spend money on other nice materials and belongings, it is better to pay off debt and create a budget in order to save money, to be able to get what we want.

Career planning (240)

My desired career field is commercial and residential Real Estate. After 3-5 years as an agent I would want to be a broker for Helping Hands Home Solutions. For this career, I would need to work up to it as an intern at a firm, finish formal education in marketing in college and then complete programs to get the license along with the exam. With all the hardships of gaining a license the education will pay off. My resume will look favorable because of the programs that I have accomplished in order to achieve my ideal position in Real Estate. Updating a resume can be a valuable thing if you want to present yourself as an expert, want a new job, want a promotion and even if you get nominated for something. According to U.S. News a real estate agent e arned a median salary of $44,090 in 2016. The best-paid earned about $112,570, while the lowest-paid earned approximately $22,230. (https://money.usnews.com/careers/best-jobs/real-estate-agent) My goal is to be a top real estate agent and that position will definitely satisfy my income expectations because I am one to save money and work my way up. Most people don’t make the money they want at my age so after working in sales for many years I will continue to have an increased income to balance out my growing life. Budgeting (149)

As a server, my net worth is approximately 700 dollars. I track my budgets using the capital accounts along with a list with a budget app. Prior to beginning this finance course, I actually have been practicing budgeting so, when I started my dollar diet, it wasn’t too difficult to grasp onto. I remained having a strict budget and was able to save 200 dollars more than if I wasn’t as strict. I don’t ever spend money online and hardly go out, to save me the extra money I’d be spending. That’s why tracking your spending is a crucial: It forces you to come face to face with the biggest commination to your financial situations. I will continue to follow my strict budgeting to ensure that I am saving money and spending money only when I need to.

Credit (240)

I do not have a credit score. Though I did my research, and there are many ways in which an individual can build credit. One of the ways can be by applying to a credit-build loan. Typically, the money you borrow is held by the lender in an account and not released to you until the loan is repaid. It’s a forced savings program of sorts, and your payments are reported to credit bureaus. You can also build credit by the rent you pay along with having good habits. That means, paying off debt and paying on time always. Avoiding to open too many accounts at once and keeping the credit utilization low. In conjunction, checking for each of the credit reports annually for errors and discrepancies are also a great habit to practice. It is important to have a credit score because c redit scores determines what sort of terms you are likely to get. Loans are a necessary part of life for most of us. Building a solid credit history and maintaining a high credit score can have a dramatic impact on your quality of life now and in the future when you're considering applying for a loan or even a prepaid debit card. The only debt that I owe is college debt. I am and will be slowly saving money from my multiple paychecks for a good year to pay back my 5,500 dollars in debt.

Financing college (155)

When I applied to Portland State University, I had two scholarships. An out-of-state scholarship and a mentor scholarship. But this did not cover everything. My parents helped pay for my first year but I still was accountable for everything I borrowed afterward. I had took out student loans prior, so I still owe 5,500 dollars. Before I graduate, I want to be able to receive other scholarships and grants to ease off my large debt. As for paying off the other percentage of debt, it will take me some time to recover and save in order to pay it all off. When I graduate I will have roughly 15,000 dollars of debt. As for my future children’s formal education, I will be saving up some money as a long term goal, measured for more than 5 years. Realistically, I will not pay for all of their college tuition. Purchasing a Home (181)

In the future, I see myself owning a home. I would love to stay in an area for more than a few years and I want children. I also want my finances to be stable. Buying a home can be a great investment. If home prices in the area have been rising, buying a house can help stay in a neighborhood that one could otherwise be priced out of in a few years. And even if an individual

don’t end up staying in the house long term, a sharp rise in local property values could mean a sizable profit when one decides to sell. In addition to the other advantages of owning a home, Homeowners may be able to deduct the cost of mortgage interest, property taxes and points you pay to secure a loan.According to Trulia, mortgage rates are fixed from a 30 year type with an average of 4.342% with a 15 year fix with an average of 3.715% and a 10 year fix with an average of 3.694% in the city of Portland, Oregon. Insurance (160)

Insurance is an essential component of any stable budgetary arrangement. Diverse kinds of protection ensure you and your friends and family in various ways against the cost of accidents, illness, disability, and death. After reviewing the auto insurance worksheet, I had conducted research and read about liability coverage, collision coverage and comprehensive coverage, all things I did not know much before. I learned of policies that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Automobile insurance serves a bigger purpose than just adding financial protection to your vehicle. If there is an accident, you’ll be able to get immediate health care and emergency services. In addition to insurance, no one is dependent on me, so I don’t need it now but for the future, when I get married and have children, the financial responsibilities will increase and would have to consider a coverage. Retirement (192)

Retirement life is different for everyone. For my instance, I would work until 70 for a bigger retirement package. Depending on the circumstances, my mortgage will more likely be paid off and I won’t be commuting as much or even at all. Though, health care costs will probably rise. The  average retirement will last for about 20- 30 years,and Social Security benefits are typically adjusted annually for inflation to help maintain your standard of living. This year, for example, the amount would be $531 or $44 a month. The total amount needed for retirement, including amounts already saved, is $445,045 when I retire. The more volatile my portfolio is, the more susceptible it is to large swings if the market crashes or has a correction.The second way that I can look at risk is in t he  probability of being able to accomplish my goals. Another way of saying this is that this would be a riskier way to invest over the long-term in terms of trying to achieve necessary retirement goals. If I started to collect benefits at 70, I could receive approximately 90,681 dollars from social security.

Estate planning (101)

In my letter of instruction, I will mention my assets such as my house, cars and inventory that will be divided between my husband and mother. My parents are responsible and reliable people and I believe that my parents have their estate in order. My parents have organized emergency information, drawn up a will and also speak with financial advisers, if anything were to happen. P  utting your affairs in order is not about death. It's about making sure things get done your way and the right way. It is one of the most important financial and lifestyle decisions of your life. Course overview (169)

To say the least, I have learned more in this course than I thought I would. I truly had to read and research to completely understand the topics. Researching expanded new areas of knowledge that have taught me more about stocks, retirement and the economic world around me. I believed that the discussion posts and research activities were great activities that have helped me express thought and communication over important issues and subjects with fellow classmates. In addition, the worksheets were also great practice on realizing the finances that I didn’t know were important to consider. Through this course I learned the most on savings and budgeting. Budgeting is a very valuable skill to acquire when managing your money. Also, Saving for short term goals and long term goals could guarantee success on things you’d like and need. In conjunction, the salary and job preparation sheets have also helped me realize how to realistically get to where I am and how to get to where I want to be....