Money and Government

Money is created and regulated by government. Shelly and Mike work and make their own money and create a profit which is then taxed by the government. Personal finance and government regulations are very closely linked. The government passes laws to regulate the economy hoping that everyone will prosper. The U.S. government relies on tax mostly income taxes. The income tax is the most relevant for personal financial planning, as everyone has some sort of income over a lifetime. Both State and Federal income tax plays a large role in our personal finances. Shelly and Mike pay around 28% of their annual income in taxes. Government controls economic policies that control or influence taxes, interest rates and inflation which all effect finances. Government regulates or supervises financial institutions like banks, and holds them to certain requirements, trying to maintain the integrity of the financial system. The economy and government rely on one another, which in the end always plays a role in our personal finances. 
There are many government assistance programs available in the United States that can contribute to personal finances. Some of the programs that Shelly and Mike may have to use are medicaid which are medical benefits to low income people that have no insurance or medicare which is health insurance for individuals over 65 years of age. Government housing assistance available to low-income families and individuals. They may need financial aid to assist when sending their two children to college such as the Pell grant. Supplemental Nutrition Assistance Program such as WIC or the Bridge card can help lessen the burden of supply food to the family. Social Security Disability which Shelly already uses since she is unable to work. Childcare for working parents with young children which Shelly and Mike may use if Shelly gets back to work. Every now and then hard working people like Shelly and Mike may experience a financial hardship. Sometimes people just...