Personal Finance Assignment 2

Assignment 2: Financial Planning

(25.0 points)

1. Describe one short-term goal that you have and at least one thing you will need to do in order to accomplish that goal.

One short-term goal I have is to make an 80% or above in geometry. One thing I will have to do is study.

2. Describe one long-term goal that you have and at least two things you will need to do in order to accomplish that goal.

One long-term goal I have is to go to college. Two things I will have to do is to save money and get a good score on the ACT.

3. Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that might help you accomplish this goal.

One long-term financial goal is that I will buy a car. Another is that I will join a sorority. Steps I will need to achieve these goals is that I will first, get a job. Second, I will set money aside for things when I receive my check. And lastly, I will set a time on when I will pay for these things. These things are important to me because I will need a car in the near future when I go to college and I've always wanted to be in a sorority.

4. Describe an example of a common financial resource, an expense, and a debt. These can be examples from your own life or from other people you know or can imagine.

An example of a financial resource is income. An expense is food. An example of a debt is money you borrow from the bank.

5. Describe a real or made up but realistic example of earned income that you or someone you know has received. What type of work was the income from? Was the income in the form of a salary or wages?

The type of work was cashier. The income was in the form of wages.

6. Describe a real or made up but realistic example of unearned income that you or someone you know has received.

An example of unearned income is a gift card.

7. In your Section_2 folder, navigate to and open the Example_W-2. Use it to answer the questions below.

a. What is the name of Jessie Robinson's employer?

Finance Learning Corporation.

b. What is the total gross income Jessie received from this employer? TIP: This is in the box labeled Wages, tips, other compensation.

$16,680.24

c. How much did Jessie's employer withhold for federal income tax from Jessie's paycheck?

`$1,728.00

d. How much did Jessie's employer withhold for Social Security tax from Jessie's paycheck?

$1,034.16

e. How much did Jessie's employer withhold for Medicare tax from Jessie's paycheck?

$241.92

f. Calculate Jessie Robinson's net pay by subtracting the three amounts withheld for taxes from Jessie's gross pay.

$451.92

8. In your Section_2 folder, navigate to and open the Example_1040EZ, and then complete the steps below to save a copy of the file with your initials in your Section_2 folder.

a. Click the File menu, and then Click Save a Copy.

b. If a Save a Copy dialog box appears, click Save a Copy.

c. Make sure the Save in drop-down list is set to your Section_2 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_2 folder.

d. In the Name: field, type Example_1040EZ followed by your initials.

e. Click Save.

9. Follow the instructions below to fill out the 1040EZ form using Jessie Robinson's information. Be sure to save your work! (5.0 points for completing the 1040EZ form correctly according to the instructions below) TIP: You can refer to Section 2, Lesson 2 for help in filling out the form.

a. Fill out