WEEK 44

For the following PROBLEMS 1 , 2 and 3. ONLY answer the questions in bold text.

PROBLEM 1

Taxes 

Benjamin Franklin reportedly said, “In this world nothing can be said to be certain, except death and taxes.” In other words, taxes will always be with us.

When we think of taxes, we often focus on the largest one, the federal personal income tax. But we also pay other taxes. Some are federal, and some are only in specific geographic areas (cities or states). Paying taxes can have a significant impact on our household budget. However, it’s also important to note the benefits we receive from services that are funded by tax dollars (public education, roads, parks, food assistance, etc.).

Identify one tax (other than federal personal income tax) you pay and one benefit you utilize that is funded by tax dollars. How do both of these impact your life and your family member’s lives?

PROBLEM 2

Checking Accounts and Credit 

Many consumers use checking accounts and credit, often in the form of credit cards.

  • What are some of the advantages and disadvantages of having a checking account?
  • What are some of the advantages and disadvantages of having a credit card?
  • What are some strategies you could use to manage credit cards to avoid paying high-interest rates and fees?
  • How can planning to manage your accounts lead you to be more productive and better equipped to reflect on your financial priorities?

PROBLEM 3

Loans and Housing 

For many Americans, buying a home is a goal. But it is also expensive compared to renting. 

Explain some of the advantages and disadvantages of buying a home compared to renting. What are some of the key issues a first-time homebuyer should consider?

Additionally, describe a housing-related goal that you may have for yourself. What types of financial information might you need to be able to create a starting point for reaching this goal?