Essay Example on Personal Finance

(Score for Question 1: ___ of 1.0 points)

Describe one short-term goal that you have and at least one thing you will need to do to accomplish that goal. (2-4 sentences)

Answer:

My short-term goal is savings to buy household furniture. To meet this goal, I am doing monthly savings to raise the cash in 5 months time.

(Score for Question 2: ___ of 1.0 points)

Describe one long-term goal that you have and at least two things you will need to do to accomplish that goal. (2-4 sentences)

Answer:

My long-term goal is saving for retirement. I am currently looking for ways to generate income through small investments. Another thing is using retirement calculator in making financial adjustments to fund a comfortable retirement.

(Score for Question 3: ___ of 2.0 points)

Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that might help you accomplish this goal. (4-6 sentences)

Answer:

My long-term financial goals are homeownership and college. These goals are important for my future family. To achieve these, I will reduce current debts, applying for private mortgage insurance, and apply for student loan.

(Score for Question 4: ___ of 3.0 points)

Describe an example of a common financial resource, an expense, and a debt. These can be examples from your own life or from other people you know or can imagine. the (3-6 sentences)

Answer:

The family is a common financial resource because they can easily help you settle your bills. A common expense is electricity bill in the house while a common debt is student loans in a higher education institution.

(Score for Question 5: ___ of 1.0 points)

Describe a real or made up but realistic example of earned income that you or someone you know has received. What type of work was the income from? Was the income in the form of a salary or wages? (1-2 sentences)

Answer:

Supplying agricultural products to Walmart stores is one source of income. Some teens buy bananas from farmers and supply them to Walmart and get some wages which help in sustenance.

(Score for Question 6: ___ of 1.0 points)

Describe a real or made up but realistic example of unearned income that you or someone you know has received. (1-2 sentences)

Answer:

Social security income received by disabled people is an example of unearned income. They receive money every month from the government without doing visible work.

(Score for Question 7: ___ of 3.0 points)

In your Section_2 folder, navigate to and open the Example_W-2. Use it to answer the questions below.

What is the name of Jessie Robinson's employer? (0.5 points)

What is the total gross income Jessie received from this employer? (0.5 points) TIP: This is in the box labeled Wages, tips, other compensation.

How much did Jessie's employer withhold federal income tax from Jessie's paycheck? (0.5 points)

How much did Jessie's employer withhold Social Security tax from Jessie's paycheck? (0.5 points)

How much did Jessie's employer withhold Medicare tax from Jessie's paycheck? (0.5 points)

Calculate Jessie Robinsons net pay by subtracting the three amounts withheld for taxes from Jessie's gross pay. (0.5 points)

Answer:

Type your answer here.

In your Section_2 folder, navigate to and open the Example_1040EZ, and then complete the steps below to save a copy of the file with your initials in your Section_2 folder.

(a) Click the File menu, and then Click Save a Copy.

If a Save a Copy dialog box appears, click Save a Copy.

Make sure the Save in the drop-down list is set to your Section_2 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_2 folder.

In the Name: field, type Example_1040EZ followed by your initials.

Click Save.

(Score for Question 9: ___ of 5.0 points)

Follow the instructions below to fill out the 1040EZ form using Jessie Robinson's information. Be sure to save your work! (5.0 points for completing the 1040EZ form correctly according to the instructions below) TIP: You can refer to Section 2, Lesson 2 for help in filling out the form.

(a) Fill out the Income section of the 1040EZ form, using the following information:

The gross income information from Jessie Robinson's W-2 form. TIP: This is the amount of question 7b above.

This employer was Jessie's only source of income.

Jessie had no taxable interest.

Jessie was not an Alaska resident.

Jessie has no spouse and can't be claimed as a dependent by someone else.

Fill out the Payments, Credits, and Tax section of the 1040EZ form using the following information:

i. The federal income tax withholding information from Jessie's W-2 form. TIP: This is the amount of question 7c above. Social Security tax and Medicare tax are not important to the 1040EZ form.

ii. Jessie can't be claimed as a dependent by anyone else.

iii. Jessie is not claiming the Earned Income Credit.

iv. Jessie is not a member of the U.S. Armed Forces who served in a combat zone.

v. Use the Example_Instructions_1040EZ's tax table on pages 27-35 to find the amount that Jessie Robinson owes. TIP: The Example_Instructions_1040EZ is in your Section_2 folder.

Fill out the Refund section by performing the calculations if the IRS owes Jessie Robinson money. Do not fill out the bank account information section.

Fill out the Amount You Owe section if Jessie owes the IRS money.

Do not fill out the Third Party Designee Section, the Sign Here section, or the Paid Preparer's Use Only Section.

Click the File menu, and then click Save so that your work is saved.

(Score for Question 10: ___ of 1.0 points)

Describe at least two common types of variable expenses that you expect to have at some point in your life. (1-2 sentences)

Answer:

Car payment and buying for food are common expenses in life.

(Score for Question 11: ___ of 1.0 points)

Describe at least two non-discretionary expenses that you expect to have at some point in your life. (2-4 sentences)

Answer:

Life insurance premiums and real estate expenditures are some of the non-discretionary expenses.

(Score for Question 12: ___ of 1.0 points)

Describe at least two discretionary expenses that you expect to have at some point in your life. (2-4 sentences)

Answer:

Buying luxury items like a television set and vacation costs are some of the discretionary expenses.

(Score for Question 13: ___ of 3.0 points)

Imagine you have a budget of $1,000 per month. Make a list of at least three categories you would use that money toward, such as housing, utilities, transportation, food, clothing, entertainment, savings, and so on. Then put a dollar amount next to each item to show how much money you would budget for this item each month. Make sure the total adds up to $1,000. TIP: The cost of each item can be a rough estimate. You don't need to research specific costs of each expense.

Answer:

My three expenses would be transportation, food, and clothing. I will spend $200 for transportation and $300 for clothing. I will use a total of $500 for food since the family is big.

(Score for Question 14: ___ of 1.0 points)

Describe an advertisement you've seen that uses a desire based marketing message. What desire does this ad appeal to? (2-4 sentences) TIP: This can be any ad, such as a TV commercial, a radio ad, a magazine ad, a billboard, an Internet ad, or another type of ad.

Answer:

Coca-Cola always advertises their products using a billboard. The common message they communicate is tasted the feeling to make consumers desire to taste how the product is.

(Score for Question 15: ___ of 1.0 points)

Describe an advertisement you've seen that uses a fear-based marketing message. What fear does this ad appeal to? (2-4 sentences) TIP: This can be any ad, such as a TV commercial, a radio ad, a magazine ad, a billboard, an Internet ad, or another type of ad.

Answer:

Anti-drug abuse agencies use fear-based advertisement to warn against drugs. An example is printing horrifying images in tobacco packets to scare users of health impacts of the product.