My Current Financial Situation : Cosi

There are both pros and cons to spending with credit. A consumer must be responsible for their spending and plan ahead for the future. Many people are quickly swept with debt a short period after receiving a credit card. Other consumers are wise enough to control their spending and limit their purchases.

Credit cards can ruin any financial situation if used improperly. Let’s look at what our two financial authorities think about them. Dave Ramsey is completely against the idea of using credit cards. Being a devout Christian, he often finds his ways of financial teaching through The Bible. Proverbs 22:7 states “The rich rule over the poor, and the borrower is slave to the lender.” You are charged a premium for using a credit card in the form of interest. While you can pay off credit before the interest is charged, Dave insists that many people do not pay if off in time. It is better to get rid of the enticement altogether than to play with the idea of using a

Currently, I don’t have a credit card. All of my payments are made in cash of with my debit card. In the last lecture we learned that it is a good idea to get a credit card young so the credit can start building. Mr. Klassen says that he uses his card for the necessities that he has to buy anyway such as gas and groceries. I would like to implement that in my own spending habits once I get a credit card. I would keep my balances low by being responsible with how I use my card. In addition, I will start out with only one credit card. There is a lot of temptation to open up many cards with different companies, but with one card it is easier to keep track of your

My profession affords me the opportunity to bring home $3,750 a month before taxes. The first two expenses that are deducted from my paycheck as soon as I receive my direct deposit is my mortgage ($600/homeowner’s insurance included) and my car note ($400), when combined amount to $1,000 a month.

During the Financial Fitness module I learned more about my credit score and how to improve it. I also learned the different ways a credit score is made up of. A credit score is usually used to see how likely you are to pay back money that you owe. Usually banks use them to issue loans or credit card companies’ use it to decide if they want to give you a credit card and how much they want to set your limit to. It is important to build your credit score up because it will benefit you in the future when you need to borrow money or even get a job. Some jobs check your credit score before they hire you. Also if you don’t pay a bill your credit score will go down after 30 days past the due date. Some advice I learn was to get a credit card when

Looking at the entire semester I spent a total of $5,668. I spent $308 on clothes in store and online, $459 on food in the grocery store, $562 on food in multiple restaurants and fast food, $1,049 on entertainment like my vacation and movies, $340 on gas, $177 on the gym, $123 on miscellaneous items from CVS or 7 eleven, and $2,650 on school tuition. The overall amount surprised me because I did not even think I earned this much in the semester. It makes me very uncomfortable because there is a lot of money spent on unnecessary things. For example, I spent $562 on food from restaurants. This is so highly unnecessary because I also spent $459 on groceries. The category where I spent the most money was school tuition, which is expected.

The Bottom line is that before you get a credit card or any credit account, you should have a basic understanding of how your score is calculated and how to use your credit responsibly. You should know how to gain access to your credit reports and scores. After you’ve done that, you can start building your credit. Remember! Be very patient, building your credit takes time, but it will happen as long as you’re making the right credit

The results of my Personal Monthly Budget demonstrated that my income does exceed my monthly expenses. Monthly, it is between 100 and 400 dollars because I am a student and I work part time at my minimum wage job. I am mainly supported by my parents who put me on a strict budget and require me to stick to it. It is not enough to live by because costs of living, food, and utilities are more than $400. If there is anything I want to purchase for leisure, I must pay for it myself and that causes my savings to decrease.

In the case of credit cards, they can be a real friend if you encounter an emergency and run out of cash. Of course, you can't count wanting a new pair of pants as an emergency. Typical emergencies might include car issues, medical issues or unexpected travel needs. Credit cards also provide a great way to build your credit score as long as you have the discipline to pay them off on a timely basis without incurring too much interest. Finally, credit cards with a low APR and an aggressive rewards plan can provide great benefits if handle properly. What it all really boils down to is that credit cards offer no danger as long as you use them in a manner that doesn't expose you to extra costs or lead you into a difficult debt

Although the reliance on student loans continues to increase for college students across the nation, the vast majority of American teenagers are not required to attend and complete a Financial Literacy course before graduating high school. According to Jillian Berman, only five states scored an A on the 2015 Report Card on State Efforts to Improve Financial Literacy in High Schools, and those same five states are the only states in the country that require students to take a dedicated semester of personal finance courses before graduating (Marketwatch.com). There is an obvious problem with the state efforts to properly educate finances when 14 out of 50 states rank in at a failing grade. Money is an essential asset to life on Earth, and proper education on financial management is vital for the basic requirements to sustain life. Education on how to manage money in order to afford food, shelter, clothing should be the main priority of the Financial Literacy courses. More in-depth are topics

Also, consider ways to bring home more money, if the expenses are difficult to pay each month. Producing more income is less stressful than facing the challenges of living with limited earnings. Study the options of working overtime, or turning a hobby into extra cash.

Money is a necessity in life and is a constant worry for college students especially when you take out a $10,000 loan. Financial aid has replaced studying as the biggest worry for college students. The objective of college is to learn and grow as a person, but is limited by financial capabilities which is a big problem for the U.S. education system and prices continue to go up. Main focus is having to focus on rigorous studying, students may also have to work to stay in school. A student is paying college through a $10,000 loan and working a part time job 20 hours a week. John wonders if getting a credit card will help him financially. The best solution is to attain a credit card that has student benefits included and will make it easier to protect and keep track of your money.

A lot of students find themselves in financial trouble. Especially, if you only work a certain amount of hours. Students have trouble maintaining finances because they have mostly lived off of parents and/or guardians since birth. For most students, college is usually the first time away from home. It can be difficult to adjust. Overall, learning to manage money can be a daunting task for anyone, but especially when you are young and just starting out.

Bank credit cards have short-term benefits to consumers. They are a convenient way for consumers to be able to purchase items, pay bills, go on vacations, etc., without having the necessary funding for those things at the time of the transactions. The credit cards also benefit the banks that profit form the interest and late fees that consumers have to pay. In the long-term, consumers often find themselves in sever debt due to unmanageable spending habits. Thus, creating situations where very few banks and consumers profit from the use of the credit cards. So for some it has long-term benefits but for many others there is not.

As far as credit cards are concerned three good reasons for obtaining one are; they aid you in establishing your credit score as well as history. Credit cards are also great if there is an emergency that requires immediate financial action and assistance. Lastly, credit cards offer many benefits such as cash back, rewards, and discounts. The negative effects of credit cards is that they often come with high fees and interest rates. One other negative drawback to obtaining a credit card is that individuals can get themselves into