Personal Finance Assignment 1
CORRECT SOLURIONS GRADE A+
1. Describe two examples of important things that financial planning
skills can help you do, and explain why these things are important to
you personally. (4-6 sentences. 2.0 points).
Two important things financial planning can help me do is to create a
budget and plan for retirement. Creating a budget is an important
thing to do because it helps to organize your finances and figure out
how much money you have to spend on both necessities and luxuries.
Planning for retirement is important because you need to make sure
that you have enough money stored up to support your lifestyle when
you retire. Both things are important to help live a flexible,
monetary- wise lifestyle
2. List two examples of goods you have purchased in the past or may
purchase in the future. (Complete sentences are not necessary. 0.5
points)
food and clothes
Brainpower
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3. List two examples of services you have purchased in the past or
may purchase in the future. (Complete sentences are not necessary.
0.5 points)
Haircuts and cooking
4. One of the functions of money is as a store of value. How does
inflation affect money's ability to store value? (3-6 sentences. 2.0
points)
When inflation goes up, the price of an item does up with it. This
means that you would have to pay more for something than you did the
first time. Inflation makes the value of the dollar go down and can
hurt businesses
5. Imagine that you are considering moving to a new country and
looking for a job there, but you first want to make sure the country
has a strong economy. Describe at least three economic factors that
you would want to research as evidence of the economy's strength or
weakness, and explain how each factor would affect your decision to
move there. (4-6 sentences. 3.0 points)
I would look at the Gini Index, GDP (gross domestic product), and the
GDP per Capita. The Gini index is used to measure the economic
CORRECT SOLURIONS GRADE A+
1. Describe two examples of important things that financial planning
skills can help you do, and explain why these things are important to
you personally. (4-6 sentences. 2.0 points).
Two important things financial planning can help me do is to create a
budget and plan for retirement. Creating a budget is an important
thing to do because it helps to organize your finances and figure out
how much money you have to spend on both necessities and luxuries.
Planning for retirement is important because you need to make sure
that you have enough money stored up to support your lifestyle when
you retire. Both things are important to help live a flexible,
monetary- wise lifestyle
2. List two examples of goods you have purchased in the past or may
purchase in the future. (Complete sentences are not necessary. 0.5
points)
food and clothes
Brainpower
Read More
3. List two examples of services you have purchased in the past or
may purchase in the future. (Complete sentences are not necessary.
0.5 points)
Haircuts and cooking
4. One of the functions of money is as a store of value. How does
inflation affect money's ability to store value? (3-6 sentences. 2.0
points)
When inflation goes up, the price of an item does up with it. This
means that you would have to pay more for something than you did the
first time. Inflation makes the value of the dollar go down and can
hurt businesses
5. Imagine that you are considering moving to a new country and
looking for a job there, but you first want to make sure the country
has a strong economy. Describe at least three economic factors that
you would want to research as evidence of the economy's strength or
weakness, and explain how each factor would affect your decision to
move there. (4-6 sentences. 3.0 points)
I would look at the Gini Index, GDP (gross domestic product), and the
GDP per Capita. The Gini index is used to measure the economic
