Semester Project Personal Finance

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qoynpx2016

Business Finance

Description

Semester Project: Personal Finance

There are 5 parts to this project

Project Objectives

For this project you will have the option of creating a brochure, slide show presentation(I prefer slide show), or written report including all necessary information. It is best to be creative and try to be as original as possible. However, it is important that you do not focus on having the prettiest graphics; having the best content will get you the higher grade.

Semester Project: Personal Finance: Part 1

Developing a Sound Financial Life

Using the Bureau of Labor Statistics Career and Education website, pick your future career. (Career of Choice: Registered Nurse Working in Myrtle Beach, SC) Describe your job, necessary training, schooling, and expected salary.

Then, using the information found in the above exercise, use the budget worksheet from Unit 1 to create a budget based on your career and income choices. So, if you are planning to make $2,000 a month as a teacher, then you would obviously not plan to put $3,000 aside each month for savings. The more realistic the budget is, the better your project will be.

Additionally, using an internet search engine, find a blank W-2 and W-4 form from the IRS website. Complete these forms as you would if you had interviewed and earned the job in the career field you chose. Try to be as accurate as possible.

At the end of this section, pick 3 finance terms you wanted to learn more about, look up their meanings, and write a paragraph on each.

Semester Project: Personal Finance: Part 2

Understanding Credit

For this section, you first need to create a credit score for yourself. Pick a reasonable number and explain how you chose that number. Using that credit score, pick 2 items (car, house, boat, vacation house, etc) that you are planning to finance while you are working in your chosen career. Based on the credit score you provided and what you learned about credit, evaluate 3 different finance offers for each item (6 total offers). You can view credit offers or enter the search words "finance offers" into an internet search engine. Decide which offer is the best for each item and explain which company you chose to finance your 2 items. How much will you pay over the course of the loan? What options did you have to consider when financing? Be sure to explain your answers thoroughly.

At the end of this section, pick 3 credit terms you wanted to learn more about, look up their meanings, and write a paragraph on each.

Semester Project: Personal Finance: Part 3

Spending Money

For this part of the project, pick 10 expenses you will have each month based on your chosen career and life path. Explain if those expenses are fixed or flexible.

Next, explain 3 items that you feel can be categorized as short term debt and 3 items that can be categorized as long term debt. Explain how you plan to pay off each of these items.

Finally, create a savings plan to ensure that you will have enough money to meet financial goals later in life. What do you plan to do with your income each month? Expand on the budget you created in Part I. Now is the time to really decide what is important to spend money on. Points will be deducted for not including basic expenses.

At the end of this section, pick 3 spending terms you wanted to learn more about, look up their meanings, and write a paragraph on each.

Semester Project: Personal Finance: Part 4

Banking & Insurance

Using the information you provided in previous parts of this project, pick 2 types of accounts you plan to put your money into. Why did you pick these type of accounts? Explain.

Next, discuss 3 types of insurance you feel that you will need while working in your chosen career. Which types of insurance did you pick? What type of insurance policy will you purchase? Based on your occupation, are you considered a high or low risk? Remember, whatever type of insurance you choose, you must include the type of policy you would purchase. You cannot just say "I want to buy health insurance."

At the end of this section, pick 3 insurance terms you wanted to learn more about, look up their meanings, and write a paragraph on each.

Semester Project: Personal Finance: Part 5

Investing Money

Based on your career path and future income, list how much money you plan to set aside each paycheck for savings. Using that amount, determine how much money you plan to put aside for investments. Choose 2 types of investments you would put money towards. Why did you pick those investments? Explain. How much do you plan to earn with those investments? (Hint: Use the Rule of 72).

Finally, explain how you will prepare for retirement. Will you have a 401(k) or 403(b)? (This is where your career choice comes in.) What type of IRA will you invest in? How do you plan to use your Social Security? At what age will you start to collect? Why? Explain.

At the end of this section, pick 3 investing terms you wanted to learn more about, look up their meanings, and write a paragraph on each.

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Explanation & Answer

Attached.

1
Running head: PERSONAL FINANCE

Personal Finance
Author’s Name
Institutional Affiliation

2
PERSONAL FINANCE
Personal Finance
Developing a Sound Financial Life
Introduction
Personal finance can be defined as the management of funds and decisions about money
for the future. The choices may be done individually or by family members which may include
budgeting, investment planning, and retirement. When an individual plans and manages his or
her finances, he or she spends money over monetary resources, saves and takes into account that
there are future financial risks (Joo, 2008). That being said, let’s take into account that for a
person to have a sound financial life, he or she needs to have prior planning and setting goals.
The long-term goals can be graduating with a good grade, and then being successful in your
career, proper management of the finances and the right retirement.
It is worth noting that I would like to be a registered nurse in Myrtle Beach, SC. A
registered nurse is a person who has graduated from a nursing program and has met various
requirements outlined by a state. Nonetheless, the duties of a nurse may vary according to the
areas of expertise (Joo, 2008). For instance, a nurse is expected to perform physical exams. It is a
routine health check of a person’s overall health. Notably, an individual does not have to be sick
to request for such an exam. Furthermore, a nurse is expected to provide health histories of the
patients. It mainly occurs if the individual is a regular visitor to the health facility. Apart from
that, a nurse administers medications which may involve giving the patients medicine, treatment
of wounds, and other many personalized interventions (Joo, 2008). Moreover, a nurse promotes
health by counselling individuals and educating them on various issues of health. Lastly, a nurse
is expected to interpret patient information as provided by a physician and make decisions about

3
PERSONAL FINANCE
the actions to take. Therefore, a nurse is mostly attached to the patients; thus, he or she offers
emotional support to them.
Notably, for an individual to become a registered nurse, he or she is expected to receive
formal training and the technical skills which play a huge role towards their professional life
success. Firstly, one must receive an education. For instance, earning a Bachelor’s of Science
Degree in Nursing requires one to study for four years. A nurse gets classroom instructions
which are mostly theory and then there is practical training in health facilities. Among the
programs reviewed may include pharmacology, dietetics and nutrition, psychology, leadership in
nursing, informatics in health care and community health nursing. Apparently, before joining the
Bachelor’s degree program, I am expected to provide high school transcripts or scores from a
college such as SAT. They indicate that one has studied and met the minimum grade required for
entrance into the nursing program education. Notably, after graduating and becoming a nurse in
Myrtle Beach, SC, I expect to get a salary of $1,606 per week which translates to $6,424 in a
month and $77,088 annually.
Budget Worksheet
Categories

Planned Income

Actual Income

January

$6,424.00

$6320,00

Planned Expenses

Actual Expenses

Housing Rent

$60.00

$60.00

Gas

$55.00

$55.00

Insurance

$250.00

$250.00

Notes

4
PERSONAL FINANCE
Internet

$100.00

$130.00

Student Loans

$135.00

$135.00

Car Insurance

$200.00

$200.00

Groceries

$160.00

$200.00

Lunch Money

$150.00

$185.00

Church

$500.00

$500.00

Personal Grooming

$112.00

$115.00

House Maintenance

$135.00

$150.00

Dry Cleaning

$100.00

$150.00

Furniture

$350.00

$350.00

Emergency

$150.00

$150.00

Trash collection

$50.00

$50.00

Vacation

$300.00

$405.00

Cell phone

$200.00

$200.00

Cable TV

$100.00

$100,00

Savings

$2000.00

$2000.00

Totals

$5107.00

$5385.00

offerings/Charity

Total Monthly

$6320.00

Income
Total Monthly

$5385.00

Expenses
Difference

$935.00

5
PERSONAL FINANCE

W-2 and W-4 Form

Finance Terms
Interestingly, the three finance terms that I was interested in knowing include gross
income, net income, and compound interest. Firstly, gross income refers to an individual’s
income or salary paid to a person by an employer before any deductions are made. Notably, a
person may have different sources of income such as salary, income from house property, profits
and gains of a business and other sources (Penman, 2007). The gross income determines the
taxes an individual will pay. However, some of the revenues are excluded when determining the
gross income. They might include gifts, inheritances, income from the sale of a home and social
security benefits.
Net Income (NI) refers to the residual amount earned by an individual after taking away all the
deductions from the gross pay. The most common type of deduction made on every employee’s
salary is 'pay as you earn tax' (PAYE) which is a withholding tax. The PAYE is deducted from
every paycheck by the employer and remitted promptly to the government. There are also the
payroll taxes which are withheld by the employer, but they depend on the employee’s earnings
(Pen...


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