Personal Finance Essay

Personal finance addresses the way an individual or families earn, budget, save, and spend money gained from employment, loans, or gifts. As a college student, my personal finances are based upon money I have obtained, seasonal employment and parental support. In creating my budget, I had to realize that my income was not the same each month so I had to make sure I had enough money to pay for my gas, phone bill, and entertainment. Sometimes I would go over budget due to unexpected bills so I would ask for help from my parents. I use a debit card through my bank City National Bank. I chose this bank because my parents also bank there and it’s a small personal bank. It makes it easier if I need my mom to transfer money to my account in case of an emergency. I do not use checks only my debit card and occasional cash, the debit card pulls money out of my account somewhat like a check. I do check my account online, and my statement looks similar to the on in The Money 101 Student Workbook. The format is a little different, but the same kind of information is given. I do not keep a register much to my mother’s dismay. Every Christmas, she gives me a register to keep track of my spending but I fail to use it. I do track my spending through balance inquiries that I receive via the ATM, as well as online. If I wanted to change banks, I would choose a bank that would be in Marshall and has the small town feel to it. I would also want one that might offer interest on my account. I didn’t find any new information concerning debit cards, but I do prefer a debit card to a credit card because it takes money out of your account instead of possibly spending what you don’t have. You can also abuse a credit card and use it unnecessarily. I did check on annualcreditreport. com to see if I had a credit report, but I do not because I don’t have any accounts in my name. The best card deal I found was on chase. com because if I put my name on my parents account then I could also have their 8. 99% interest rate. There were lots of credit card offers that had 0% introductory rates, but since I have no credit, then the interest rate would rise dramatically. Some insurance policies that would be important for personal finance would be disability insurance, car insurance, and health insurance. Identity theft insurance would probably be a good insurance protection. The thing that stuck out to me when Mike Brady came and spoke was the concept of â€Å"full coverage† insurance for your car, he said that it’s only an interpretation and not something that is written down, he also stated that there is no such thing as â€Å"full coverage. I would probably put my savings in the savings account in my bank since I would have access to it. My retirement plan would be to match whatever my company is putting into my 401K and putting money into stock that I can draw from when I actually do retire. The test that we took in the back of the booklet was fairly easy after looking through this so many times I answered a credit card would be the one to hurt you the most when in fact it says the student loans would affect your credit score more. My parents educated me very well on a lot of these subjects especially budget and checking account, my mom has preached to me about having a budget for as long as I can remember. The thing I learned from this unit, just to point one out, was the savings and retirement planning I didn’t realize it was such a priority because at my age you really don’t think about those things but I’ve learned that I do need to start early.