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Reflection Paper Finance

This reflection paper discusses the importance of financial literacy and ways to improve money management skills. It defines financial literacy as understanding financial resources like savings, investing, and budgeting to achieve overall financial well-being. The paper recommends following the 50-30-20 rule to budget spending, with 50% for needs, 30% for savings, and 20% for wants and tithing. It concludes by stressing the importance of starting to save early in life so money has more opportunity to grow over a long period of time.

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Aila Micaela Koh
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345 views2 pages

Reflection Paper Finance

This reflection paper discusses the importance of financial literacy and ways to improve money management skills. It defines financial literacy as understanding financial resources like savings, investing, and budgeting to achieve overall financial well-being. The paper recommends following the 50-30-20 rule to budget spending, with 50% for needs, 30% for savings, and 20% for wants and tithing. It concludes by stressing the importance of starting to save early in life so money has more opportunity to grow over a long period of time.

Uploaded by

Aila Micaela Koh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Aila Micaela Koh

12 ABM-3

Reflection Paper

This paper will talk about ways to improve financial literacy. We shall learn how

to manage our finances better because we are all aware that some people are having

financial difficulties. Financial literacy, as defined in the webinar, is the skill of

understanding financial resources, including savings, investing, and budgeting that leads

to an overall sense of financial well-being and self-trust.

Financial literacy is very important because it allows a person to comprehend

and make the most of whatever level of income they earn. When they don't have

money, some people become sad, irate, and even stressed out. Since money is one of

the main sources of stress for people, as was previously stated, we need to be

financially literate.

The main goal in terms of finances is to become financially wealthy. Financially

wealthy and financially rich are not the same thing because financially wealthy is not

only having enough money to meet needs but being able to afford not to work if you

do not want to while financially rich refers to having enough money to either run a

business or expand their income through work at a company. Most people are

concerned about running out of money in the retirement so that’s why they build

retirement funds. There is a thing called sandwich generation. It refers to the people

who have their own families. They provide for their children with emotional and financial

as well as for their elderly parents who are ill or unable to work that need

financial support. For us to become wealthy, we should be good stewards so that we

can avoid spending things we really do not need. We need to become a blessing to

others.

According to Warren Buffet, "do not save what is left after spending, but spend

what is left after saving". It was said that the new formula is "save before you spend".

We should prioritize saving overspending. It is because it is possible that we would

spend it all and forget to save. I’ve been doing this for years since I need to

save money and I have not asked my parents for money since then. I simply take the
Aila Micaela Koh
12 ABM-3

allowance they give me and save some money to buy the things I desire or need. We

should follow a rule to stay out of financial difficulty. It is known as the 50-30-20

rule. This is beneficial to us as students because it helps us save money. 50% for

needs, 30% for savings, and 10% for tights and wants. It is okay to reward yourself if

you achieved something deserving, even if it is small, if it boosts your

motivation in life.

In conclusion, it is very important to save money. We live for approximately 80

years, according to a study, but we only have 40 years to make money because,

whether we like it or not, we will grow old and some of us may become ill or unable to

work, necessitating financial support. According to Ms. Andrea Bamba, it all starts with

discipline. We can apply the 50-30-20 rule as students. We can start with a small

amount of money and build saving habits. 10% will go to charity, 10% will be used for

wants, and the remaining 90% will be used for our needs. Saving money today and for

the next five to ten years is a great idea. Saving earlier ensures that your money is

invested for a longer period of time and has more opportunity to grow.

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