Insurance and Taxes

In this Everfi module, I learned some important things that will be very valuable to me in the future about insurance and taxes. One thing that I learned was the 1040EZ is an end-of-year tax form that is used to determine the amount of income tax owed to the IRS. Also, When starting a new job, you will fill out the W-4 tax form. This form determines how much money will be withheld from your paycheck for taxes. 

Renting Vs. Owning

Owning tends to be cheaper in the long-term, since at the end of your payments you own the property – which builds your wealth and enables you to potentially sell the property in the future.When deciding to buy a car, there are many additional costs to consider – like registration fees, the price of gas, maintenance and repair expenses, and even auto insurance payments! Car leases can have lower monthly payments but tend to be more expensive in the long run.

Higher Education Debt

According to The Institute for College Access and Success (TICAS) Project on Student Debt, the average borrower will graduate $26,600 in the red. While we've all heard the screaming headlines of graduates with crippling debt of $100,000 or more, this is the case for only about 1% of graduates. Average debt levels for all graduating seniors with student loans rose to $29,400 in 2012. That is a 25% increase from $23,450 in 2008.

Credit Scores

A credit score is a numerical rating that indicates how likely an individual is to repay their debts. A low credit score can impact your ability to get a loan, open up a credit card, or even being approved to rent housing.You should check your credit report yearly for accuracy, and notify the credit bureaus immediately if notice any information is incorrect. You are entitled to a free credit report each year (one from each credit bureau – for a total of 3 per year!) You can increase your credit score by paying bills on time, using a low percentage of your available credit, and using a variety of credit types. Opening several new lines of credit at once can hurt your credit score.

Payment Types

In the Payment Types module on Everfi.com I learned many helpful things. One thing I learned was that with certain paper payment methods – like cash, cashier’s checks, and money orders – you are providing the money for a purchase upfront. With debit cards and checks, however, the money for a purchase comes directly out of your checking account.  I also learned that when you use a credit card to make a purchase, you’re getting a loan from a credit card company. With debit cards (sometimes called check cards), the money is debited directly from your checking account. This information will definitely help me later in life.

Banking

In the banking module on Everfi.com I learned many things. One thing I learned about was the components of a check. The only part of a check you don't have to fill out is the memo line. It is just used as a reminder for what your check is for. Some facts that I learned are the primary goal of the Federal Reserve System is to maintain a safe and stable banking system. Also that, liquidity refers to how easy it is to get at your money. Lastly, if an account has a high liquidity, it is easier to take your money out right away.

Savings

Hi my name is Julia and I would like to share with you what I've learned about saving money. In the savings module on Everfi.com, I learned about the power of interest, and how a few smart financial habits can help you reach your savings goals.

One thing I learned about savings is that the more time you give yourself, the easier it is to save up. When you have a certain goal in only a short amount of time, you’ll have to put aside a lot of money and have less for spending. However, if you have a long period of time, you’ll have to put aside less money and not worry as much about spending.

Another good idea for better ways to save money is by putting your money in a bank and earning interest. When going to a bank, try looking for a plan that has the high interest rate in a short period of time. Interest is money paid regularly at a particular rate. The bank pays you interest because it lends your money out to people, so in return, they pay you small amounts of money. But don’t worry, your money is safe and protected and will always be there when you need it.

There are many other great ways to save up!