1) Keeping a daily spending diary for the class opened the students eyes to how often they spent money and where it was going. It required recording every purchase and examining automatic payments. 2) Analyzing spending categories revealed areas of high spending, like eating out, that could be reduced to save money. This led students to reconsider spending habits and how choices impact health and finances. 3) The assignment challenged students to become aware of how their hard earned money is used and influenced them to be more diligent about finances to avoid debt and plan for the future.

1. FIN 1050Class and Daily Spending Diary Reflection<br />In today’s economy, it is more important than ever that people be aware of their spending habits in order to avoid the continued rise of debt and lack of savings on the part of the average American. The Daily Spending Diary brought this awareness to the forefront each and every day in having to record each penny that was spent. It was tedious, to say the least. It basically required one carrying a notebook with them at all times, as it is discovered that spending happens constantly. It would be too great a risk to wait until the end of the day to recall each transaction involving money. It also required examination of automatic payments that are easy to forget.<br />As mentioned earlier, it was amazing to realize just how often money is dispersed. It was also interesting to notice the subtle changes that occur in spending as awareness of where that money is going hits, and you begin to question if this purchase is really worth it. Spending becomes less automatic and more deliberate, meaning that many times it becomes decided that spending won’t happen this time? <br />Not only do these diligent records make spending more deliberate, but it begins to pique your interest as to what is the best use of your money, and you wonder if you are making wise decisions not only for today, but for the future as well. This exercise was like the outer layer of an onion. Once you become curious as to what you are learning, you delve into the next layer of interest and investigation, which only leads to further interest and investigation. <br />It was quite interesting to categorize expenditures and see where the bulk of the money goes. There were definite areas that were surprisingly high, that makes you sit back and question how you spent so much in that category. For my family, food outside of the home was an enormous expenditure. While it is reasonable to expect food to take a large chunk of your income, it is apparent that we have used very little discernment in this area. It has not created debt, and we are avid savers, so one might wonder if there is need for concern. I feel that there is! I do enjoy the convenience of food away from home, but I question whether the opportunity cost of our large expense in this category is worth it. Not just because of the actual cash it takes, but I have a hard time feeling that we are making wise choices for our physical health. Having health issues because of unwise choices in eating habits are not only detrimental to one’s quality of life, but are costly financially in the long run. This is one clear example of how this Daily Spending Diary sets the wheels of thinking in motion, and boy, the places it can take you!<br />This assignment was approached with the knowledge of how tedious it would be, as in the late 1990’s I read “Your Money or Your Life,” by Joe Dominguez and Vicki Robin, and it suggested keeping this same kind of record of spending. I took the challenge then for six months and it changed the way I looked at money and spending. In the book, Dominguez points out the fact that everything you spend represents your life’s energy. Thinking about your purchases in those terms makes you begin to question the value of everything…including your life! You give up a little of yourself for everything you own. That is powerful!<br />FIN 1050 has been an interesting journey into the world of understanding money in our lives and the choices we have regarding what we do with it. This class touched on virtually every aspect of a person’s financial well-being, many of which are overlooked in the rush of life. For me, it was a chance to become informed and to assess areas in my own finances that need to be addressed. At times the amount of information was overwhelming, but the reality is that from budgeting, saving, borrowing, investing, and planning for retirement or even death, each of us has to be responsible for our own financial health. We see examples of people almost every day who have neglected to be informed and/or to make wise choices concerning their finances. I see it with family members and close friends. The results are usually disastrous and painful to observe. After taking a class like this, I only wish it were required for everyone. <br />I went to a Forum this semester where the speaker said that knowledge of personal finance does not seem to improve the chances of one’s financial success. Maybe the knowledge alone does not help. Maybe everyone should have to record every penny they spend and come face-to-face with the way their money is used. I know that before I logged my spending years ago, I gave little consideration to what I could do to improve my situation. Becoming aware of what I constantly traded my hard earned dollars for created an awareness that sticks with me today. I will admit that doing this exercise once again this semester was a gentle reminder that diligence must be practiced with our finances in order to avoid the pitfalls of reckless spending. <br />In conclusion, FIN 1050 is a class that has been greatly beneficial to me. It has offered a wealth of information and insight that provided a strong basis for understanding my responsibilities in obtaining sound financial health.<br />