Pesonal Finance Essay

800 Words4 Pages
Assignment 1: Economic Basics (24.0 points) 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). The first would be to create a budget. It would help me control my money and see what I can afford. The second one would be to help me save and invest money. I would be able to put money away for my savings investing can help me get more money. 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) I have purchased a car and in the future I might purchase a better car 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) I have purchased delivery pizza and I might purchase pizza again in the future. 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) The value of money decreases and you need more money. With inflation the price of products go up. It makes saving harder 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 see if inflation was a factor. If there was an increase of jobs in the area. If the pay was good that way I could pay my bills, I would also have to see what the unemployment rate was to see if I was able to get a job. 6. Explain which economic system (market, planned, mixed, or traditional) you
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