Work Based Learning Wrokshop #6

In this workshop, I learned how to spend my money, to saved, to invest, and to make a good budget. One way to save is by creating a bank account or a checking account. A checking account is where you write a check for a payment to an individual company. A saving account is money that is hold by an institution. Its important to create one, because it could be use for emergencies or to purchase expensive stuffs. A credit card is actually a loan by the bank that it must be paid every month. It is important to pay the credit card, the whole purchase amount because interest will be charged to the balance. When you receive your check, it will include some payroll taxes, like Federal Taxes, Medicare, State Taxes, and Local Taxes. all of these withholding will reflect in your gross income, which will lead to your Net Earning. There are retirement accounts available that will make you a millionaire when you retire. For example, there are two long term saving tools like Roth IRA or 401K. It is better to create a retirement saving at a young age. It is recommended to analyze your budget before spending. First you save, then you spend. Don't spend money you don't have like having credit card depts. Investing is to expend money with the expectation of achieving a profit. You could invest in financial schemes, shares, properties, or commercial venture.
Financial Literacy is the ability to understand how money works, how to manage it, how to earn it, and how to invest it (to put money to work for you). The most important key is time, because time is finite. Time that you spend now determines how you spend it in the future. Its very important to budget your time. Assets are things that appreciate in values over time. Liabilities are things that depreciate (become worthless) over time. The rich accumulate assets while poor people accumulate liabilities. Wealth= Assets-Liabilities. Here are some examples of Assets and Liabilities that were shown in the presentation:
Assets: Your mind, your deputation, your physical and mental skills, your ability to adapt to change.
Liability: Your lack of time management, your lack of education, clothes, sneakers, lack of interests in personal grown, dept.