Financial Literacy Project

It is essential to understand and use some of the financial skills effectively. This ability is referred to as financial literacy; it includes financial management on a personal level, investing, and budgeting. This type of literacy creates a foundation of a person's relationship with money, and it is a long journey that involves learning. Their steps in improving this financial literacy include learning various strategies for creating a budget. It also consists of the ability to track the expenses that one has, which are deducted from the salary. This assignment involves research concerning a starting salary after graduating. Then later, a budget will be developed based on the projected income. Finally, on reflection, a summary of the research and calculations of the budget will be provided.

The job location is in Miami, which is found in Florida. It is the place where I decided to settle after graduation. I am working for Brunswick Corporation, a consumer goods company located in Illinois, Florida, in the United States. I work there as a staff accountant at a Free Boat Club. Concerning salary information, per year, it is usually $54,000(Arianti, 2018). This means that the net salary will be exclusive of the taxes and other deductions in one month. It will account for 2/3 times of 54,000, which amounts to 36,000. When divided by twelve, it will give a net salary of $3,000, deducted from the taxes. This will help make the monthly budget, and the net pay will therefore be $3000, which means the other third, exclusive of the deductions, amounts to $1,500. This is the starting salary as licensed right now, and the credential of the area I will reside in is indicated above.

Additionally, the expenses will be represented in tabular and graph forms. It will help create a budget that will include; housing and living expenses like rent, maintenance, utility, food, loan payments for students, and transportation (Arianti, 2018). Also, the budget will include childcare if applicable, car loans, credit card, and other debts, savings on emergency, expenses on continuous medical, savings on retirement, long-term goal savings like purchasing a new home or a new car. Entertainment will be accounted for in discretionary spending like eating out, and the insurance category will also be accounted for in the budget. Therefore, the expenses will be calculated to be subtracted from the net amount, and the balance of each month will be identified. The results will then be displayed in a circle chart....

…to make these budgets within a person's projected income to avoid the costs of surpluses. Budgets are therefore essential tools in financial literacy. The current job I am serving is still the one I am budgeting for, so no further changes will be experienced, so the figures remain the same.

In conclusion, financial literacy is an essential aspect of a person's life, especially when budgeting for the salary. The salary is to be analyzed as it had been projected, and in this case, t third of the compensation is kept aside so that the other two-thirds can be used for the various expenses. This kind of literacy has proved helpful since it equips a person with the necessary skills so that the salary may not be squandered. It also helps effectively manage debts, hence less financial stress and anxiety. In this condition, one can reach the financial goals since it is always their urge to have better financial decisions when one is working. The knowledge and skills can still be used in other aspects of life. It is also evident that the amount spent on expenses should be lower than the salary. That is why it is necessary to make these budgets within a person's projected income to avoid the costs…