Question

25 POINTS!

Introduction

In this unit activity, you will examine how financial institutions affect personal financial planning.
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Directions and Analysis
Task 1: Financial Institutions
Describe the different types of financial institutions available to you in your community.

Type your response here:





Task 2: Financial Planning
Describe your financial plan for the next five years. Provide a listing of your goals and the steps you will have to take to achieve these goals.

Answers should include the goal and the specific steps to achieve that goal (i.e., setting aside $5 from each paycheck to save for a new iPhone).

Type your response here:






Task 3: Using Financial Institutions
For each step in your financial plan, describe the financial institution you will utilize.

Type your response here:

Answer 1

Task 1: Financial Institutions

In my community you can find the following financial institutions:

Comercial Banks: Regular banks where people and companies go to acquire services as: credits and accounts.

Trusts: Companies that guarantee the compliance of contracts called trusts.

Brokerage firms: Companies that sell and buy securities in the stock market.

Insurance companies: Companies that sell insurance for protecting people or companies from different risks

Investment banks: Banks that manage investment portfolios, and invest in different projects developed in sectors such as construction.

Pension funds: Companies that collect the social security payments of workers and create investment portfolios to gain profits.

Task 2: Financial Planning

My plan is to buy a jeep wrangler within 5 years, the cost of it is 28.000 for that I would need to work and save the 30% of all the paychecks that I earn until I save $5.000, with this down payment I can ask for a credit with the following Payment Details :

MONTHLY PAYMENT $473

TOTAL LOAN AMOUNT $24,447

TOTAL INTEREST PAID $3,911

Task 3: Using Financial Institutions

I will use a Commercial Bank to save my money in a savings account and then I will use the same institution for asking for a loan.