Personal Finance
Personal Financial Plan- Part II
Personal Finance
Economics plays a role in personal finance. -Describe the role that economics plays in your personal financial plan. Also, the use of credit plays a role in a personal financial plan. Describe the advantages and disadvantages of credit and explain how you will use it as part of your financial plan. Specifically address the following required elements:
- Explain the role the government plays in personal finance (focus on regulations, laws, economic policy, etc.).- Money is created and regulated by government. People work and make their own money and create a profit which is then taxed by the government. Personal finance and government regulations are very closely linked. The government passes laws to regulate the economy hoping that everyone will prosper. The U.S. government relies on tax mostly income taxes. The income tax is the most relevant for personal financial planning, as everyone has some sort of income over a lifetime. Both State and Federal income tax plays a large role in our personal finances. The average American pays around 28% of their annual income in taxes. Government controls economic policies that control or influence taxes, interest rates and inflation which all effect finances. Government regulates or supervises financial institutions like banks, and holds them to certain requirements, trying to maintain the integrity of the financial system. The economy and government rely on one another, which in the end always plays a role in our personal finances.
- Explain the role of government assistance in personal finance (describe what type of assistance is available). There are many government assistance programs available in the United States that can contribute to personal finances. These are some examples:
-Medicaid: Medical benefits to low income people that have no insurance.
-Medicare: Health insurance for individuals over 65 years of age.
-Social Security:
Personal Finance
Economics plays a role in personal finance. -Describe the role that economics plays in your personal financial plan. Also, the use of credit plays a role in a personal financial plan. Describe the advantages and disadvantages of credit and explain how you will use it as part of your financial plan. Specifically address the following required elements:
- Explain the role the government plays in personal finance (focus on regulations, laws, economic policy, etc.).- Money is created and regulated by government. People work and make their own money and create a profit which is then taxed by the government. Personal finance and government regulations are very closely linked. The government passes laws to regulate the economy hoping that everyone will prosper. The U.S. government relies on tax mostly income taxes. The income tax is the most relevant for personal financial planning, as everyone has some sort of income over a lifetime. Both State and Federal income tax plays a large role in our personal finances. The average American pays around 28% of their annual income in taxes. Government controls economic policies that control or influence taxes, interest rates and inflation which all effect finances. Government regulates or supervises financial institutions like banks, and holds them to certain requirements, trying to maintain the integrity of the financial system. The economy and government rely on one another, which in the end always plays a role in our personal finances.
- Explain the role of government assistance in personal finance (describe what type of assistance is available). There are many government assistance programs available in the United States that can contribute to personal finances. These are some examples:
-Medicaid: Medical benefits to low income people that have no insurance.
-Medicare: Health insurance for individuals over 65 years of age.
-Social Security: