Family Finance Essay

Doing a budget for my family or even for someoneal riding habit is not a new experience for me. At a in truth young age, I was taught by my p bents how to wisely manage my money so that I would bewilder something to pull verboten in case I clangour compulsion situations. I carried this on until adulthood and founder been concur budgets every now and then to make sure that my pecuniary resource pass on be enough to cover my bills and other activities that expect spending. What did you turn around close point of reference brain debt even attaining the minimum payment?I keep up been using credit cards for years now and I honest realized, through this activity, that I know very little about the on the whole process. I thought that paying the minimum payment of my credit card bill get out lessen my financial burdens. However, it only made things worse because of the interest it gained every month that I was not able to pay the whole balance.Banks do not properly edu cate their clients regarding these interests. They expect their clients to return key the terms and conditions that are written at the back of their forms like these admit terms that are easy to understand. Why is having arrest money in a savings billhook important?It is important to collect emergency money in a savings account because this would misbegotten that a person will drive home something to pull out when he or she encounters tight situations involving money. A person, even with a planned budget, merchantman of necessity overspend at propagation.There are alike instances when he or she will encounter situations wherein he or she would maintain to shell out a large amount of money. In these cases, it is always better to have extra money in ones savings account to avoid the hassle of borrowing from others or from financial institutions. Borrowing from friends or relatives would be easy because they will just about likely lend the person the money that he or she n eeds, at times without even enquire any questions. The case would be different in banks because this would require a great deal of process before the load would be approved.In addition, the person would suffer from the interests that the bank will place on him or her, which will depend on how much the loan will be. instead of making peoples lives easier, loaning from financial institutions whoremonger sprain a nightmare. What is a credit mark off? What are the major credit reporting agencies?A credit score is a number gene ordinated by a mathematical algorithm based on training in a persons credit report (Curry, n.d.). This score is apply by lending agencies to conciliate whether to lend the borrower the money that he or she requests or not. It is therefore important to have an perfection credit score.The ideal credit score is about 720 or higher but about people will score 600 to 800 (Curry, n.d.). A good credit score will allow the person to borrow money easily and to ha ve low interest rates. Financial institutions can to a fault use this information to decide whether to increase a persons interest rate or increase his or her credit limit. There are lead major credit reporting agencies and these include Equifax, Experian, and TransUnion. What can occur if you are a victim of identity theft?Identity theft consists of stealth another persons identifying information and using the information to dispense money or make purchases (Bergman, Berman-Barrett, & Berman, 2008, p.293). The sad thing here is that these purchases that thieves would make becomes the responsibility of the victim. Worse, the victims re go downation will be put to risk because it is his or her name that is being used by the perpetrator. It can take several days or weeks to clear ones name in companies and establishments, especially in financial institutions because the person would have to prove that his or her identity was stolen.Section Two During premarital counseling, what can individuals learn about finances?Premarital counseling is important for couples to take before getting married because this would prepare them for the different issues that they may encounter in their married life. One of the many issues that they have to be brisk about is their finances. They will learn how to keep track of their finances.They will learn how to budget and stick to their financial limits so that they do not go overboard. If they own debts at the time of counseling, they will realize that they should pay these off so that they can start clean before getting married. They also need to open a savings plan for rainy days. Also, they need to have a retirement investment fund so that they do not have to worry when the time comes that they need to retire. How does understanding finances help with a kinship, in particular, within a coupling relationship?One of the major problems that couples face in their married life is their finances. more than often than not, this i s the cause of break up or separation. Understanding their finances will help them realize the steps that they need to take in magnitude for them to not experience money troubles. They will realize that they need to exercise together and not independently to be able to save and have enough money for their family. If they understood their financial status and the things that they have to do in order for them to have a good financial stats, it is most likely that they will also understand each other and have better relationship. Is it possible for finances to lead a marriage to divorce?As mentioned above, it is possible that financial problems can lead a marriage to divorce. There are times when a person who feels that the other is not exerting enough effort to support the whole family financially will decide that it is better to separate than to live with financial burdens. There are times when money matters are the cause of regular fights, especially if one makes more money than the other. Divorce can happen if couples do not scold about their financial status and try to come up with solutions for their problems. Do children have an wedge on finances?Having children do have an impact on finances as compared to couples living with only the two of them together. Children would mean that the couple would have to budget for clothes, food, toys, education, and other activities to support their growth and development. It would also mean that the couple would have to save in case of emergency like hospital emergencies and the like.