Personal Finance free essay sample

I will also need to prepare a plan to pay for the college of my choice. 3. Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that might help you accomplish this goal. (4-6 sentences. 2. 0 points) My long-term financial goals are to buy a house and to retire. These are important to me because it pertains to how I will live when I am too old to work. I will need to make a budget, prepare my finances, and spend and save wisely. 4. Describe an example of a common financial resource, an expense, and a debt. These can be examples from your own life or from other people you know or can imagine. (3-6 sentences. 3. 0 points) A financial resource can be a house because it is worth money to the banks. It is an expense because you have to spend money to pay for it. And it can be a debt if you choose a house that is out of your price range and you cannot meet the payments for the house. 5. Describe a real or made up but realistic example of earned income that you or someone you know has received. What type of work was the income from? Was the income in the form of a salary or wages? 1-2 sentences. 1. 0 points) A teenager working at a fast food restaurant is an example of earned income. The income is in the form of wages because they are paid by the hour. 6. Describe a real or made up but realistic example of unearned income that you or someone you know has received. (1-2 sentences. 1. 0 points) Winning the lottery is an example of unearned income. 7. In your Section_2 folder, navigate to and open the Example_W-2. Use it to answer the questions below. a. What is the name of Jessie Robinsons employer? (0. 5 points) Finance Learning Corporation b. What is the total gross income Jessie received from this employer? (0. 5 points) TIP: This is in the box labeled Wages, tips, other compensation. $16,680. 24 c. How much did Jessies employer withhold for federal income tax from Jessies paycheck? (0. 5 points) $1,728. 00 d. How much did Jessies employer withhold for Social Security tax from Jessies paycheck? (0. 5 points) $1034. 16 e. How much did Jessies employer withhold for Medicare tax from Jessies paycheck? (0. 5 points) $241. 92 f. Calculate Jessie Robinson’s net pay by subtracting the three amounts withheld for taxes from Jessies gross pay. 0. 5 points) $13676. 16 8. In your Section_2 folder, navigate to and open the Example_1040EZ, and then complete the steps below to save a copy of the file with your initials in your Section_2 folder. a. Click the File menu, and then Click Save a Copy. b. If a Save a Copy dialog box appears, click Save a Copy. c. Make sure the Save in drop-down list is set to your Section_2 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_2 folder. d. In the Name: field, type Example_1040EZ followed by your initials. e. Click Save. 9. Follow the instructions below to fill out the 1040EZ form using Jessie Robinsons information. Be sure to save your work! (5. 0 points for completing the 1040EZ form correctly according to the instructions below) TIP: You can refer to Section 2, Lesson 2 for help in filling out the form. a. Fill out the Income section of the 1040EZ form, using the following information: i. The gross income information from Jessie Robinsons W-2 form. TIP: This is the amount from question 7b above. i. This employer was Jessies only source of income. iii. Jessie had no taxable interest. iv. Jessie was not an  Alaska  resident. v. Jessie has no spouse and cant be claimed as a dependent by someone else. b. Fill out the Payments, Credits, and Tax section of the 1040EZ form using the following information: i. The federal income tax withholding information from Jessies W-2 form. TIP: This is the amount from question 7c ab ove. Social Security tax and Medicare tax are not important to the 1040EZ form. ii. Jessie cant be claimed as a dependent by anyone else. ii. Jessie is not claiming the Earned Income Credit. iv. Jessie is not a member of the U. S. Armed Forces who served in a combat zone. v. Use the Example_Instructions_1040EZs tax table on pages 27-35 to find the amount that Jessie Robinson owes. TIP: The Example_Instructions_1040EZ is in your Section_2 folder. c. Fill out the Refund section by performing the calculations if the IRS owes Jessie Robinson money. Do not fill out the bank account information section. d. Fill out the Amount You Owe section if Jessie owes the IRS money. e. Do not fill out the Third Party Designee Section, the Sign Here section, or the Paid Preparers Use Only Section. f. Click the File menu, and then click Save so that your work is saved. 10. Describe at least two common types of variable expenses that you expect to have at some point in your life. (1-2 sentences. 1. 0 points) 11. Describe at least two non-discretionary expenses that you expect to have at some point in your life. (2-4 sentences. 1. 0 points) 12. Describe at least two discretionary expenses that you expect to have at some point in your life. 2-4 sentences. 1. 0 points) 13. Imagine you have a budget of $1,000 per month. Make a list of at least three categories you would use that money toward, such as housing, utilities, transportation, food, clothing, entertainment, savings, and so on. Then put a dollar amount next to each item to show how much money you would budget for this item each month. Make sure the total adds up to $1,000. (3. 0 points) TIP: The cost of each item can be a rough estimate. You dont need to research specific costs of each expense. 14. Describe an advertisement youve seen that uses a desire based marketing message. What desire does this ad appeal to? (2-4 sentences. 1. 0 points) TIP: This can be any type of ad, such as a TV commercial, a radio ad, a magazine ad, a billboard, an Internet ad, or another type of ad. 15. Describe an advertisement youve seen that uses a fear based marketing message. What fear does this ad appeal to? (2-4 sentences. 1. 0 points) TIP: This can be any type of ad, such as a TV commercial, a radio ad, a magazine ad, a billboard, an Internet ad, or another type of ad.