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Topic 6: Personal Finance Basics
This assignment is broken down into two parts; please complete each part according to the specific instructions.
Part 1: Spending Log & Reflection Summary
Directions: Keep a spending log for one week on the attached Word document, “Spending Log” to track how you are spending money. At the end of the week, look back and reflect on how (was this on a whim or planned?) and where (was this a need or a want?) you spent your money.
Be sure to complete the Spending Log (attached Word document) to record your spending for the week.
Include all spending in the Spending Log document. The document has multiple categories in order to record the various areas where you spend money.
Spending Log Reflection Summary:
Write a 250-300-word reflection summary on how and where you spent your money. Your summary should include reflection on:
- Whether you budgeted wisely or whether you could have done a better job at your personal spending.
- If anyone has taught and modeled good money management with you in your life. If so, who was this person or people and how/what did they teach you? If not, what can you do now to make up for not learning money management earlier?
Please use the area below to write your reflection; the box will expand as needed. Solid academic writing is expected.
Summary:
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Part 2: Credit Card Evaluation Activity
Directions: Research three different credit card companies and answer the questions in the table below for each. After you review and answer all the questions, you will evaluate which card and company offered the best financing option.
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Questions to Consider: |
Card A |
Card B |
Card C |
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Is the annual percentage rate (APR) fixed or variable? |
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What is the APR penalty of the card? Does it trigger events when it is charged? |
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What is the annual fee? |
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What is the late fee? |
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What are the transactional fees of the card? This could be in regards to balance transfers, cash advances, etc. |
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What is the method of computing the account balance in the card? |
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What is the over-the-limit fee? |
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Does the card have rewards for use? What are they used for? |
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Reflection Questions:
1. Which of the three cards had the best offer?
2. Why is it important to know if a credit card is at a fixed or variable APR?
3. What is a positive in having a credit card? What is a negative?
4. Why is it important to establish credit?
5. How can you keep your credit in good standing?
* Note: there are several credit reporting agencies (some are free) that you can use to review your credit standing. If you are curious to find out your standing, talk to your banking institution for suggestions.