Growth In Economics By: Markeiyah ISom

What Do You Take From Your Earnings?

  • Earnings are also known as the net pay, or the amount of money you get paid after taxes and deductions.
  • This is how you calculate your net pay, Net Pay = Gross pay (total amount of money earned during a pay period) - Deductions (Taxes).

There Are Many Responsibilities When Filing Taxes

  • Before learning how taxes work, I believed that the government just takes them when we buy things, and we get them all back when income tax season comes.
  • After learning this topic I learned that we have responsibilities to file for our own income tax, the government does not do it for you.
  • Another responsibility with taxes is that if you have a job you have to allow your employer to withhold taxes from your pay.
  • You also have from the first of January until the 15th of April to file for your income taxes.
This is the 1040 form, which if filing for income taxes you are required to complete.

How Credit Differs From Debit

  • With a credit card this allows the cardholder to use funds from a credit card company to make purchases you not be able to afford.
  • A debit card is a card issued by a bank and allows the holder to get money directly from their account.

How Open Credit Differs From Closed Credit

  • With open end credit, you are not restricted to a specific amount, and you do not have a set date to pay back your debt.
  • Closed credit however, you are borrowing a specific amount of money. You have to make payments regularly and you are borrowing for a set time period.

What Is A Stock Vs. A Bond

  • Stocks mean that you own a piece of a company, in the long run it can benefit you but it is not guaranteed.
  • A bond is a loan, the company is in debt to you. Bonds may offer a steady stream of income, but yields are often lower than stocks.

The Importance Of Saving

  • Savings is money put away in a safe, accessible place.
  • Many people start to save money when they get their first full time job for things like retirement and building their lives. Ex: Buying a home, buying a car, going on vacation, getting married, having a child.

There Are More Than Just One Option When Saving

  • With saving you have 3 options, one being a regular savings account. This is when your bank offers a higher interest rate than a checking account.
  • Another is a CD. This account requires a minimum balance to be kept in the account for a minimum amount of time as well.
  • And finally there are Money Market Accounts (MMA) which is a cross between a savings account and a checking account, and sometimes require a minimum balance.

Factors To Consider When You Have A Savings Account

  • When you have a savings account you should consider 3 important factors.
  • 1 the safety of the account, look for FDIC which insures 250,000 if your bank goes bankrupt.
  • 2 would be convenience, are you able to access your savings? Can you link your checking account for easy transfers?
  • 3rd would be earning potential interest rate, or how much per year will your savings grow? If any.

It Is Very Important To Have Financial Goals

  • Prior to taking this course I was unsure of my financial goals, but I was sure that I wanted to have everything done right without ever going into debt.
  • A way to prevent debt would be to set financial goals. By the time that I turn 18 i plan to be saving $50 from my job so that I can help my mom with college costs.
  • By the time I am 25 my goals would be to start contributing 10% of income to my retirement plan. Also to save for a down payment on my own home.
  • By the age of 45 I plan to be almost paid off with my home and if I have kids then their college funds will be saved.
  • Finally by the age of 65 I will evaluate my retirement savings and by that age i will be able to retire and do much more with the years of planning ahead.

The Major Take Out From The Semester For ME.

The major things that I have taken out from this semester would be how to save my money more. Starting this semester I would always spend my money on unnecessary food, or things that I do not need, but now I see the true importance behind saving. It lasts forever if you know how to manage it. And you really taught me how to do so. Thanks. (:


Created with images by free pictures of money - "Money" • Office for National Statistics - "Effects of tax and benefits on household income" • John-Morgan - "Taxes"

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