Finance 1050: Personal Finance
In the six trait writing prompt we were required to explain the 3 concepts most important to us. With-in this writing prompt we were required to pick 10 subject-related vocabulary words and highlight them in bold with a brief description of what each vocabulary word meant. What follows is my six trait writing prompt:
I think the 3 most important things to me were about insurance, financial planning and the concept of money. There are many different types of insurance we are able to buy. What are most common are house, life and auto insurance. Life insurance is beneficial to the people to whom are listed in your will, an agreement/plan of who and/or what your savings or investments go to after your death. One way people choose to grow their money for life insurance is by investing it. When you invest money, you save it in an account or a place where you will earn a certain percentage of the amount of money you are keeping in that place as a thank you for using their facility. This money will grow overtime. You need to watch out for the time value of money as it will increase because of the percentage rates on peoples money. If this time value of money increases too much, it will lead to inflation; this is not good for the economy because it is almost free money the goverment gives for its people to use their safe money keeping facilities. Another way this inflation may occur is if people reinvest their already invested money; from this you get double the interest because you have now double the money in your account, which is called compound interest. There are ways that you can eliminate this risk, or exposing yourself to any chance of loss. One of these ways, and probably the smartest way, is to create a financial plan. A financial plan allows you too see and organize all your assets, any item you own that can be converted to cash, and your liabilities, any debts you may have. Seeing what you have and what you owe can immensely help you to find a way to lower your expenses, costs and charges you make, by evaluation of what are necessities and wants, a desired but not necessary object.
This class has helped me to become stable in my finances. It has lead me to understand all there needs to know about any financial situation I may have. In learning these things I am able to be confident in my financial choices because the choices I will now make, I know, are smart choices based on what I have learned in this class. In the future I will be able to continue making wise decisions conserning finances and if I do not know anything about the situation I will atleast know the basis of the situation because I have been taught in this class and with that knowledge will then be able to research what it is that I need to research in order to create a wise financial decision.
