Madison Webster, Chapter 7, Question #7

After reading chapter 7, I realized how stupid I am. Insurance never crosses my mind. However, it is necessary. It's funny that this chapter was assigned for homework because just this morning I had a conversation about car insurance with my dad. He mentioned how much of a waste of cars were. You have them for about 8 years and spend a bunch of money regarding upkeep, insurance, gas, etc, and then it all simply goes down the drain when you get rid of the car. Public transportation just seems like a way smarter route. My dad informed me about the different prices my family has to pay for car insurance for each driver. This relates to what Wheelan says about the risk factor involved with insurance. The highest insurance is actually mine because I am a teenage girl driver so therefore it is more likely to get in a crash. I learned the reality that insurance really does save your butt when a risk overcomes your life.

Another aspect of the chapter that affected me was the section titled Save. Invest. Repeat.. I learned that is important to spend less than you earn to generate spare capital and therefore gain money in the long run. I save most of the money I recieve now by putting it away in the bank, but I could do a better job with investing. I bought a C.D. at the bank which was a safe investment to gain a minimal amount of money without the possibility of loosing any. The advice Wheelan gives is important to remember in the future.