When I first saw that the topic this week was going to be finance, let me just say I was a little worried. For me, Finances have never been my strong suit. I never really was taught in high school either about certain finance topics that others were taught. So reading the course materials made me very informed and I was able to actually learn about finances. The first article I read was about student loans, and some tips on how to pay them off, and what to do when you do have a bunch of loans. One thing I learned, in particular, was that you should always start with paying off the most high priced loan first. And then continue to pay the rest, this way you will get the big chunk out of the way and will able to pay little amounts and soon enough they will be paid. The second article I read talked about what happens when a deceased person still has debt. I actually found it very interesting that when a person passes away and they may not be here, their debt definitely still is. When that person passes away, a loved one, relative or someone still has to pay the debt of that person. I found that astonishing, I had no idea that it still would have to be paid even though they are no longer here. The third article I read focused on what you would want to do with your finances and what you should know about how expensive they can be. For instance, starting a business, before starting a business you should do research about the certain business you are wanting to start; ranging from an internet company all the way to opening your own franchise. There are many things that come to the forefront way before signing any kind of papers. You must consider your financial situation, your abilities, goals, and most importantly if this is actually going to make you money.
The first resource I chose to use from the content section was the simulation, SPENT. Though this was just a simulation, it was incredibly stressful to think about having to make these decisions with so few options. The option to ask a friend was helpful but so many friends and family members are often in the same situation so it can be almost unfair to ask them for help because it may put them in a worse position than they are already in.
After this simulation, I moved onto the tips for students and paying back loans. This was almost as stressful as the first resource but not in the same way. This was more relatable to me because I am very worried about paying back student loans, especially since I plan to pursue a Masters Degree and a Doctoral Degree. Some options for loan repayment include public service or federal work. Luckily, I want to work for the CDC and I would most likely be eligible for loan forgiveness after 10 years. One thing I learned in my personal finance class was to pay loans and bills in a snowball effect. When one is paid off, continue paying that amount of money into other loans and bills to pay them off sooner.
I also read the student aid bill proposed by the President Obama and it sounds ideal. However, our country does not all think the same way and believe that personal responsibility is more important than helping others. Many believe that college assistance is a hand out that not everyone deserves. With the current political administration, I am worried that it will become harder and more dangerous to borrow from the government to earn a college education.
I think it is important for future students and borrowers to understand how loan repayment works, especially the differences between federal and private loans. I also believe it is important for more people to be taught about personal finances and how to be an “adult” in high school. I left high school not understanding how to balance a checkbook, pay off a loan, or even how to apply for a credit card. These are important things that people need to be taught in order for them to be the most educated and prepped for “the real world”.