Think Tank Challenge
The Think Tank Challenge has influenced my choices with money and my goals in high school, college, and beyond in several ways. By attending the workshop I was allowed to look into different aspects of how to handle the use of money. I learned about things such as credit, saving, and investment.
Before I attended the workshop, I had heard about these terms, but I had never been presented an in depth explanation of how this can affect my future if I do not set limits. A credit score is a summary of all the loans you have received and your determination to repay the loan on time. A good credit score lies between 700-850 on a numerical scale. Credit allows you to purchase a car or even a house. If you do not have a good credit score, then you may be denied loans to a place you may want to apply to. A savings account at the bank allows you to save a proportion of your money to use in the future in case of an emergency. If I were to save $10 a day for 30 years I could make a total of $447,107. This money could be used to pay college loans or any debt I may have reached in the future. An investment is when you purchase something which will create a profit later in the future.
Additionally, there is a fact that states that the average person globally makes a minimum of $10,000 annually. Also, in order to make one million dollars a person would have to put a total of 92 years of work. This has an impact on me with how I spend money because it shows that you have to choose wisely on what you spend your money. It is important that you only spend the money that is left after saving. If possible, we should have a retirement plan in mind because we need to have money saved for necessities. In order to be prepared for moments in life such as car, home, and appliance repairs you need to set aside 3-6 months of your total expenses. It is best to be proactive than reactive in such cases. This has prepared me for future experiences and circumstances.
Finally, with this information I have gained strategies that will support me in the future. I learned that circumstances such as an unexpected appliance repair can control humans when in reality it should be the other way around. At the end of the day the difference between financial success or failure is how a person decides to manage their money. For future references, I will make sure that I spend my money wisely because there may be an emergency, and it is important to have an emergency fund. It will also save money by putting a proportion of my check into a savings account. To have a good credit score I will pay back my loans with interest rates on time, so I can make other purchases. A strategy I learned from the presentation was the wealth formula which includes money, time, rate of return, minus inflation and taxes. This is one formula I will have in mind in order to be successful in life and the choices I make.
In conclusion, the presentation allowed me to think and plan my future choices. It made me become aware about situations that occurs constantly as an adult. The choices you make with how you manage money can be difficult. Now, this will not be a shock to me since I have become alert during the presentation. In life we have to think about money as it is going towards different categories such as debt, income, mortgage, education, car and health insurance. At some point, everyone will reach some or all of these categories to which money will have to be distributed. In the end of all of this there needs to be a balance between how much we spend and save money.