Savings and Debt

What is your reaction to the article? How do people get into debt so easily? How can finance charges be so dangerous? Also include a chart on the US declining savings rate. Why don't Americans save money anymore? See if you can compare the savings rate of US citizens to the savings rate of another nation.

It is actually quite easy for people to get into debt. It is really all about money management. It is very difficult to save money for many people because there are so many bills that have to be paid and usually people only work to pay out those bills. The use of the credit card worsens many people's situations because they include interest rates that you have to pay.

US Trade Deficit: getting better?

Read this New York Times article. What is this article discussing? What is a trade deficit? Why is the US trade deficit likely to go down in the future? What kind of products is the US selling overseas? And what about the US dollar - how can a weak dollar actually help the US economy and the trade deficit?

Over half of the 9.1 million vehicles produced last year were sold in foreign countries. More KFC fast food restaurants are opening in China now than in the United States. $765.3 billion last year was our trade deficit and it could gradually decrease. Trade deficit can help to tell how much a country is worth. The S&P market says that they traded almost half of its goods to foreign countries. They say that this will narrow the gap in between the goods for this year and will contribute to the country's economy. The US trade deficit is likely to go down because of all the business that the US economy is doing overseas. Because our exports are growing, it is helping our economy to become stronger creating more domestic jobs and a better domestic economy.

Taxes - How Does The Government Get Money?

Explain the different types of taxes Americans pay. How does the federal government get money? How about the state government? And how do local (city) governments get money? Make a chart and track all of the different ways Americans are taxed. Hint - there is more than one!

Federal Taxes:
Payroll Tax: Collected from wages and salaries only
Income Tax: Collected from wages, salaries, interest from bank accounts, rents, royalties and dividends
Corporate Income Tax: Collected from a corporations net income
Excise Tax: Collected from sales of items
Estate Tax: Collected from a deceased person’s estate
Gift Tax: Collected during the transfer of property between living people

State Taxes:
General Sale Tax: Collected mostly from general sales
Excise Tax: Collected from sales of items such as tobacco, alcoholic beverages and gasoline
Estate Tax: Collected from a deceased person’s estate
Inheritance Tax: Collected from a person after they have inherited something from a deceased person

City/Local Taxes:
Property Tax: Collected from financial and real assets, this includes, stocks, bonds, houses, cars and artwork

Student Loans - Beware

Student loans are one of the worst experiences anyone can go through. I believe that some of these culinary school students took out such large loans because they did not properly plan for the future. I believe these students believed that after college, with their new jobs, they could easily pay it back. What most people dont realize that it is the interest loans and fees that really kill you. I believe that student loans are good and bad. They help you pay for your college education, but having to pay them back is where the trouble starts. Because I was not awarded any financial aid, I will have to take out student loans for school. How much, I have no idea. I'll let my parents worry about that ;)