Financial Literacy Project

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South Texas College *

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1301

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English

Date

Dec 6, 2023

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4

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1 Lowery Phillip Lowery Professor Rebecca Millan ENGL 1301 V24 May 2, 2023 Financial Literacy Project Life has a lot to offer if you learn the proper rules. It will help you as you grow and accept the challenges of life. Planning for the future financially and setting financial goals can help you in times of an emergency and when the unexpected happens. One of my financial priorities is to save enough money to cover the upcoming semester's expenses, including textbooks, transportation, and sustenance. A second financial priority is purchasing new tires for my vehicle. I also set a financial objective to purchase a light for my study area. My objective is to achieve financial independence and have unlimited resources. Another one of my objectives is to obtain a degree and a position that provides benefits, such as vacation, medical, and dental care. My long-term objective is to reduce my family's financial burden and achieve independence. I had begun working towards attaining my financial goals, but it seemed that I was always in need of funds for something else. At times, I doubted that I could afford the upcoming semester. Even today, with all the thunderstorms and the damage to the fences and roof, I am forced to postpone or cease pursuing some of my priorities. How to reconcile all of my living and educational expenses with the amount of money I earn is one of the primary concerns I have regarding attaining financial security. The quantity of money is proportional to the amount of time I have to work. I must reserve time for study and class attendance. Another concern I have is how to save money while also living. There are so many other expenses that require my income, leaving me with little to save.
2 Lowery I felt somewhat at ease when establishing a budget, but less so when adhering to it. There were numerous variables that made me uneasy, such as constantly having to pay for something that was not in my budget. I could not foresee any method to reduce or eliminate these expenses to make my budget work. I must pay for petrol to get to school and work. I pay for sustenance when I am unable to return home. I pay for my apparel and footwear. I am responsible for my tuition, materials, and all other class-related expenses, including uniforms, journals, paper, and pencils. I must also pay for services and maintenance on my vehicle, including tires, oil changes, filters, air filters, and maintenance. To maintain my budget, I can assess everything that requires funding and add it to my budget, or I can add a portion when an exact quantity cannot be assigned to a specific month. In addition, I can add a budget line to pay myself first. After this line, I can add all expenses and modify my budget so that it concludes with a zero line. This would indicate that my budget includes recreation, savings, required expenses, food, apparel, footwear, and living expenses. After establishing a budget, I must adhere to it or make adjustments to account for expenses. I am aware that some items, such as apparel, may fluctuate in price from one month to the next. This allocated amount could be added directly to my savings or used to mitigate the cost of a slightly more expensive item. My credit score did not astonish me. I have been monitoring mine for several years and was familiar with the procedure. Each month, you should pay off your credit cards in full before the due date, as this is one of the most effective ways to improve your credit score. Second, monthly mortgage payments must be made on time. Obtaining a credit card is the simplest method for establishing credit. Avoid using a debit card, as it will not have the same influence on your credit score as a credit card. Some will advise you to obtain multiple credit cards. I estimate
3 Lowery the number to be between 5 and 8. This is because it adds more credit. If you charge very little, it will demonstrate that you are using your credit responsibly and not abusing it. Contrary to popular belief, it has nothing to do with your income. The quickest method to protect yourself from identity theft and fraud is to never reveal your Social Security number or account information. Yes, my father was in a foreign country and had to give his information over the phone to a travel agent. Someone nearby or in the office overheard the conversation or saw the number written down by the travel agent. They utilized this information to fly to Canada. First, he had to terminate the credit card at an inconvenient time, as he was returning to the United States from an international location and needed the card to travel. He had to arrange for funds to be transferred from his U.S. bank to a foreign bank in order to make the flight and hotel reservation. He had to have a new credit card dispatched to him by commercial carrier, which added to his frustration because the country's customs system was involved and the shipment took a week to arrive. This consequently altered his schedule and increased his hotel and food expenses. Then he had to pay taxes at the customs office before returning to the hotel. I am most at ease with a bank savings account because it is protected and endorsed to a certain extent by the United States government. Investing in crypto tokens or other cryptocurrencies is the one I am least comfortable with because they are extremely speculative and volatile. A steady savings account or mutual fund to which I can add funds each month, one of the more conservative funds with a steady growth rate and dividend schedule, is my best bet for achieving my financial objectives. If possible, I prefer a job that pays me monthly. Due to the amount of money I can make and still have time for school and studying, I have a very low risk tolerance. I cannot afford to lose the money I have earned, so I would rather earn a small
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4 Lowery amount of interest each month than risk losing everything. I can mitigate this risk by not placing all of my funds in a singular investment. By distributing it across several, I reduce the risk. Additionally, selecting a conservative strategy and investments will reduce my risk. I'd like to learn more about exchange-traded funds, mutual funds, bonds, and company equities. I'd like to know everything about them, how to invest in them, how to limit my losses, and which investment strategy will help me achieve financial independence. It is crucial that we learn how to manage our finances and expenditures. Creating objectives and budgets is one of the best methods to live comfortably and without anxiety. It is a means by which we can obtain the items we desire and require. Being financially responsible with credit cards and making monthly payments will guarantee that we have access to credit when we need it. Learning these rules and the saving rules will help you prepare for the future and the unexpected.