vlac personal finance assignment 1

10. Describe a real or made up but realistic example of a product that went

2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points) candy bar, video games.

4. Describe a real or made up but possible example of a product that went through a time of scarcity. What was likely to happen to the price of the product when it was scarce, and why? (1-3 sentences. 3.0 points)

2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points)

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

A budget is simply a plan. It covers all your expenses and money being earned. You can have a monthly or a weekly

Important features to consider before purchasing a PC is the power (speed, RAM capacity), expandability, ports, ergonomics, compatibility (with hardware and software), footprint, support, warranty, and cost.

I believe by having a plan in place and knowing exactly how much I need to save each day, week, month, etc. will help me to successful reach my savings goals.

The retail industry is highly competitive, with few barriers to entry. Each Company competes with many other local, regional and national retailers for customers, associates, locations, merchandise, services and other important aspects of the Company’s business. Those competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses and other forms of retail commerce. Some competitors are larger than JCPenney, have greater financial resources available to them, and, as a result, may be able to devote greater resources to sourcing, promoting and selling their products.” There are many factors that characterize competition, including advertising, service,

Personal Financial Planning looks like an awesome, and necessary, subject. I look forward to this. I think through learning about planning my personal finances I will be able to think critically in situations. It appears that in this chapter that we will be planning a process for our finances, developing goals, and learning about the situations

In conclusion, every major company in the world uses budgeting and there is a good reason for that. It is an important component of financial success. Budgeting makes easier to achieve financial goals. It keeps track of all expenses and help to avoid crisis. It also helps companies to control their growth and provide them with realistic idea where business is going.

We knew that while making our product we had to keep in mind that different type of customers wanted different things all depending on how much they were willing to spend on the product. For example, Our Workhorse demanded more Easy to use, Low price, has a distinct look, able to store a lot of data, After-sale service and support, can link with other computers, Fast and powerful. They needed something reliable and less expensive since they are the hardworking people that don not have too much money to spend The chart here explains a little better on the Workhorse needs and want. The price that the workhorse was willing to pay for the product was 2,500.

Although a budget is one part of this process, we must learn to save money first. Specifically, in this book it says to set aside one-tenth of what we earn and save it (ch.5). Setting aside one-tenth of what we earn allows us to make more suitable decisions on what we do with the other nine-tenths to live our daily lives. After a certain point, the one-tenth that we save every time we earn grows more and more to be able to buy the things we want or even really need.

A budget refers to a financial plan that represents the allocation of the income to various expenditure channels such as expenses, savings, and debt repayment. A personal budget is important because avoiding financial surprises and keeping financial stress down helps avoid a crisis and allows you to focus on your overall goals. You cannot avoid all risks in life but if you plan your finances to live within your means, you can avoid being kicked out of your home, losing your car and other terrible things that a solid budget would help you avoid. Knowing what you can afford is a central life skill. Unfortunately, many do not budget even though they know they should (Wagoner, 2012).

Personal budgeting is an important factor in regards to successful long term financial stability. Budgeting has many great aspects as well as showing areas of weakness. It can show the truth about your personal financial spending habits, areas that are not looked at enough, and if there are needs for a larger emergency fund. The reality of personal budgeting is that many people potentially do not keep a personal budget for one reason or another. People also don’t consider the negative effect that it could have on one personally and or how it effects the economy.